Referrals are one of the best methods to grow a book of business. Yet many advisors still do not include a referral-generating program it in their day-to-day practices.
“There are some advisors who just never ask for referrals,” says Sandra Foster, president of Headspring Consulting Inc., a Toronto-based firm that provides advice to the financial services industry. “They could very well be leaving money on the table, their practice growing more slowly than it might otherwise be.”
Get more quality referrals by following these five steps:
1. Ask your favourite clients
To ensure you get the kind of clients you want to work with, start by identifying your top clients — those clients you most enjoy working with. Chances are these “A” clients have friends and colleagues who share their characteristics, according to Ray Gauthier, director of marketing with TactiBrand, an Oshawa-based firm that specializes in marketing services for financial advisors.
Asking clients you don’t particularly like working with will only bring in referrals you who don’t provide the business you want, he says.
2. Know when to ask — and when not to
Asking for referrals too early in the relationship can be a turn-off.
Broach the subject only when you know the client is happy with your work and “thinks you’re the greatest thing since sliced bread,” says Juli Leith, a coach with the Personal Coach in Waterloo, Ont.
How will you know how clients feel about your services? Find out by asking “value questions.”
For example, Leith suggests, use questions such as:
“We’ve covered a lot today. Tell me: what did you learn?”
“What was the value for you today?”
“You’ve been my client for a long time and I really appreciate your loyalty. Why have you stayed with me all this time?”
3. Mark it in your agenda
Schedule time for referral discussions in client meetings.
Mark “value questions” in the agenda of the meeting to ensure you don’t forget or run out of time to discuss referral possibilities, says Leith. This will also help you make sure you’re meeting your service commitments to your current clients.
4. Write a script
Explain to clients how they should frame conversations about a referral.
Gauthier says to give clients a “script” that explains what you do and how best to refer you. The idea is to make the process more like a friendly introduction.
Tell your client a scenario specific to your business that they can use to describe you, Foster says. For example, if you work with divorced clients, tell them of a situation in which you helped someone get through a divorce.
Never tell clients to give out your name without an example, Foster says.
5. Make a good impression
When you get a referral, impress the new prospect at the introductory meeting with a professional and polished image.
Make sure your branding is top-notch, Gauthier says, with a compelling story that will resonate with the prospective client, and that is geared specifically toward his or her needs.
Next: Common referral mistakes
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