Every advisor is aware of the value of referrals — asking top clients for recommendations from members of their private and professional circles — but few advisors have an effective referral strategy, according to Sylvia Garibaldi, business coach and founder of SG and Associates in Toronto.
One of the best times to bring up referrals, Garibaldi says, is when a client has complimented your work. That gives you the opportunity to turn the compliment around and ask if there is anyone the client knows who might need similar help.
The following are more strategies that can help you drum up referrals:
> Be sincere
When asking for referrals, be true to yourself. Overusing the term “referral” can be a mistake for some advisors, Garibaldi says, because it might come across as too presumptuous. The client might even say something like, “I don’t work for you!”
Instead, try a word such as “introduction.”
Blaine Conrad, certified financial planner with Ramey Investments Inc. in Dartmouth, N.S., agrees that being authentic is important. For example, Conrad frequently hosts events to which he invites certain clients and asks them to bring a friend or colleague. He does not, however, post a sign-up sheet. He believes today’s clients are skeptical of such tactics, which are often used to build a contact list. “People aren’t dumb,” he says.
> Don’t be vague
Asking the same broad-based “Who do you know?” question can be tedious to clients, says Garibaldi, as they often won’t know where to start.
Recruiting more clients who are similar to your top clients requires a targeted approach. First, it takes some business “soul searching,” in which you determine the factors that have driven the clients you love to work with to choose your practice over others.
There is no harm in telling your favourite clients that you enjoy working with them and you would like to meet more people in similar circumstance. It can be flattering to your clients to hear how much you value your relationship with them.
> Share success stories
Communicating with clients through various channels, such as newsletters, social media and email, can serve as a back-up to the face-to-face referral conversations you have with your clients. Use these marketing opportunities to highlight what you bring to the table.
For example, you can send out an email to select clients letting them know how you handled another client situation, similar to theirs. If the client finds the information useful, he or she might pass it along to someone in his or her network.
Whatever method you use to share these stories, be sure the work you are promoting is exemplary, says Garibaldi: “You need to ask for a referral when you’ve earned it.”
This is part one of a three part series on client referrals.
Next: The finer points of referral conversations.