Asking for referrals isn’t easy. It can be perceived as unprofessional or pushy. Some may see it as aggressive or opportunistic. Others may have a fear of rejection, perhaps from a lack of confidence in their abilities.
Whichever way you look at it, for many advisers, it can make for an awkward conversation.
Here’s some approaches that can help generate client referrals - without asking directly.
Use financial planning trigger events
When changes happen that affect clients, send out an email to your existing clients with valuable information about the changes, for example recent changes to the lifetime allowance and the potential impact on their pensions.
Include a call to action asking clients to forward the email on to anyone they know who may be affected, so that they can also benefit from the information shared. Ideally, the content shared will include links to book a meeting or to get in touch.
Host a client event
Host events for your clients, such as networking events, lunch and learns, or other social gatherings. Encourage your clients to bring a friend or colleague along who might be interested in your services.
Send thank you notes
After a successful transaction or financial planning exercise, send a thank you note to your client. Include a reference to referrals, such as, "If you know anyone who might benefit from my services, feel free to pass on my name."
Ask for feedback
Feedback on your services and how you can improve is essential. It will help strengthen your relationship with your clients and make them more likely to refer you to others.
At the end of a financial planning exercise, ask the question, ‘if you were to refer someone to us, what would you want to see us do differently, to improve what we do?’ This not only solicits valuable feedback, but also starts the client thinking about referrals.
Be clear on what you do and who you help
Being laser focused on the value you deliver and to whom is essential. This will make it much easier for clients to identify and recognise when and where you can help their friends and colleagues.
Make sure you communicate that value so clients can clearly articulate it to others.
Be selective and create the perception of scarcity
Most advisers offer a free review meeting, but these can be positioned to increase the perception of value and encourage review meetings.
Here’s how: ‘We have a limited opportunity to take on a small number of clients over the next few months. As part of this we are offering a free financial review meeting, limited to friends and family of existing clients, who meet our client criteria.’
It’s all about relationships
Asking clients for a referral can be hard because it often requires advisers to step outside their comfort zone. However, it is an important part of growing your advice business and can lead to significant benefits if done correctly.
It’s all about the client experience and relationship. By focusing on building strong relationships with clients, providing excellent service, and emphasising the value they provide, you can make the process of asking for referrals less daunting and more effective.
Want to find out more about how Hatch can help your business?
Book a demo today and lets talk.