How much business did you close last year from referrals?
All advisors know that referrals from clients are critical. In an increasingly competitive marketplace and a difficult economic environment, building and growing your referrals should form part of your marketing plan. It is no longer a question you want to ask at the end of a pitch.
At the start of the process, think about what you want from a client referral. Identify your best clients—the people with whom you make your best commissions and who will give you five stars. Building your referral platform from your client network starts with the people for whom you have done your best work, and ideally with whom you have a good rapport. This may seem obvious, but the goal here is to establish a rolling supply of lucrative prospects. By not targeting you will inevitably get referred to prospects you might not want to work with—your time is valuable too!
Do any of these sound familiar? “Help me build my business.” “I get paid two ways.” “Do you know anyone I might help?” These are the referral request lines advisors have been using for decades. These methods can still generate some business, but it’s a hit-or-miss tactic. Also, the day you close might not be the optimal time to ask for a referral. This would be the moment to plant the seed by telling your new client that you want to earn their trust sufficiently for them to consider recommending your services.
So how to ask the question? No one wants to appear needy (or desperate!). There are two key elements here: You need to make it easy for them, and you need to make them look good. Your client needs to feel that they are helping their friends and be able to feel good about it. It should not feel like they are doing you a favor.
Timing is important. If your happy client gives you some positive feedback, this is a good time to mention that you have other clients in their profession who have benefited from your services. It’s a chance to share stories—even referral stories—and let your client feel that sharing your business card is their choice. The benefit of a selective approach is that the higher the income of the client , the more likely they are to be trusted by their cohort.
Measure your success here. If you host client events, be sure to suggest that they invite friends and colleagues. Keep a record of feedback, conversations, and make notes after meetings. You will then be able to attribute new business to your relationship marketing strategy and identify the new turf you have made for your business.
The structured approach might take time to yield results, but it is not “less-is-more”. In time you will transform your valuable clients into lead-generators and have built a lucrative pipeline of prospects for the future.