Developing a system of regular communication with your clients can help you develop referral opportunities, says Sylvia Garibaldi, business coach and founder of SG and Associates in Toronto. But the way you handle the conversations you have with your clients about referrals can make or break your quest for new clients.
The following advice can help you fine-tune the way you manage your referral strategy:
> Aim for moderation
Too-frequent requests for referrals can give some clients the impression that your demand for new business takes priority over providing the services they need. Your request for referrals, Garibaldi says, “has to be thoughtful.”
Avoid asking clients for referrals too often, says Blaine Conrad a certified financial planner with Ramey Investments Inc. in Dartmouth, N.S.
Conrad chooses to bring up referrals only when he’s face to face with clients. And, even then, he aims for a referral request once every three or four meetings. Any more than that, he says, and you risk sending a message to clients that their business isn’t important enough to warrant your attention. Or, worse, that you’re desperate: “You have to make sure you don’t come across as too needy.”
Asking too often for referrals, Garibaldi says, can backfire. Less-frequent but well thought-out requests are more likely to bring results.
When viewing a client’s LinkedIn profile, for example, peruse his or her other contacts to see whether any would fit with your business. If so, consider approaching your client with a specific request: “I noticed through LinkedIn that [name] is also a member of [organization] or active in [area of interest]. Would you mind introducing us?”
It is a more targeted strategy and more likely to get a positive response.
> Show gratitude
While many clients are happy to help an associate by recommending a trusted advisor, that’s no reason to take their gesture for granted. A thank-you is always appropriate, says Garibaldi.
A handwritten note still rules when it comes to making sure that clients feel appreciated for providing you with a contact. Also consider giving the client who provided the referral a small gift along with the note to deepen the relationship further — and possibly lead to more referrals. A small gift card or an invitation to a future client-appreciation event might be an appropriate token of your appreciation.
Conrad sends modest gift cards for coffee or dinner to clients who have passed on a contact, even if the referral doesn’t become a client. He has provided hockey tickets to top-referral providers.
“If a referral doesn’t work out,” he says, “I still make sure that I thank the client. I like to make sure the client feels appreciated for their efforts.”
This is the second installment in a three-part series on referrals.
Next: Building referral relationships with centres of influence.