One way to inspire your clients to give you a referral — without specifically asking — is by telling them a story, says Rosemary Smyth, business coach and owner of Rosemary Smyth and Associates in Victoria.
Storytelling is a way of subtly sharing the success you have had in solving the problem of a client. Your story can be simple, detailed or funny, as long as it explains how you created positive change for that client.
Here are four tips for telling a story that can motivate clients to refer friends or family:
> Use the word “referral”
Smyth suggests using the term at the beginning of the story.
For example, if you have just greeted the client and he or she asks you how you are doing, you can respond: “I’m well. I had a great day with a referral I just met.” You would then continue your story.
Clients sometimes assume financial advisors are “booked up” and not taking new clients, Smyth says. By mentioning a referral, you have informed them otherwise.
> Make the story relatable
The best way to tout your accomplishments in working with referrals is to subtly link it to your current client’s experience.
“The story is about how you’re solving the referred client’s problems,” Smyth says. “Usually, you tie it in by picking a scenario similar to that of the person you’re talking to.”
Let’s say your client has received a large inheritance and is concerned about paying taxes. Coincidentally enough, you recently helped a referral in a similar situation effect a tax-efficient estate transfer. By telling that story to your client, you establish the fact that you work with referrals and at the same time you provide your client with the comfort that you are experienced in estate strategies.
> Be honest
Whenever possible, use your actual experiences in working with referrals. If you are using a scenario that happened to someone else — such as another advisor — make sure you say so.
For example, suppose your clients are concerned about how their young-adult children spend money. Suppose also that you had a referred client experience similar concerns. Bring it up, but do not give yourself any credit for resolving the issue unless you actually did so.
Also, keep your story in perspective. “Don’t sound like you’re curing cancer,” Smyth says. “You’re helping people — that’s your job. But you’re not going to win the Nobel Peace Prize.”
Although your intention is to share your success in the situation, the emphasis should be on how a client’s problem was solved and not solely on you.
Remember to never use the name of other clients or reveal details that could identify them. Says Smyth: “Keep it general.”