Referrals are probably the most effective way of getting new business. When clients recommend you to people they know, they’re not only bringing in new business; they’re telling you they like your service so much, they want their friends, relatives or colleagues to experience it, too.
“Some [financial advisory] businesses are built solely on word of mouth — they don’t do a lot of marketing,” says Joanne Ferguson, president, consultant and coach of Advisor Pathways Inc. in Toronto. “They have such superior service that clients are telling other people about them.”
Ferguson offers this advice to help get your clients saying good things about you:
> Tell your story
Make sure you and your team are articulating what you do and how you can help new clients.
Consider some of the positive comments you have received from clients about the service you provide. Based on those comments, write down some of the reasons why a client should refer a friend, a relative or an associate to you.
Also consider centres of influence. These are the other professionals you contact through your business, such as clients’ lawyers and accountants. Make sure they know your story so they can recommend you to their clients.
If someone doesn’t know your story, they are not going to refer you.
> Add value to your relationships with clients
Remember the details that are important to your clients. For example, note how Mr. Smith takes his coffee. The next time he comes in for a meeting, you can say: “Mr. Smith, do you still take your coffee with low-fat milk and no sugar?” This small gesture adds value to the relationship.
Know your clients’ personal interests and keep that information in a database. That will enable you to provide something valuable when a special occasion arises. If a client mentions he or she is going to Paris for a vacation, you could send him or her a guidebook about Paris. But if you know that client is an art lover, a book about the city’s galleries could be even more valuable.
> Open the door for family referrals
Ask elderly clients if they’d like to invite their adult son or daughter to sit in on one of their meetings with you. It shows that you’re interested in working with the next generation, Ferguson says — and it could mean a new client for you.
> Get the word out that you’re open for new business
Let clients know that you are willing to take on new clients. If you don’t, they might assume you are too busy to handle more business.
Ferguson knows advisors whose clients have told them: “We didn’t think you wanted any more clients because you were too busy to take on any more.”
IE