Referrals fuel the financial services industry, and without them your client base could plateau and eventually dwindle. Getting referrals is a challenge advisors face daily. It is not a matter of simply asking a client if they know anyone needing your services.
While most advisors will tell you that they get most of their new clients through referrals, if you ask them what their referral process is, they may explain that they don’t really feel comfortable proactively asking for referrals. Or they may tell you about their client/ask-a-friend events. Few will describe a systematic process whereby they explain to their clients their objectives for the business and for referrals.
Simply assuming that your clients know what types of clients you’re looking for—or that you’re even looking to bring in new clients—can be risky. For example, an advisor we spoke with recently discovered that in all the years he’d been hosting client/ask-a-friend events, his clients had no idea that his objective was to get referrals.
One of the best ways to learn how to comfortably approach the referral topic with each and every client is to do so in a dedicated meeting and not in conjunction with a client review meeting. It is during this separate meeting that you will be able to uncover how truly comfortable they are in referring you.
There are a number of benefits to a carefully planned, dedicated meeting. You can:
- Gain more business and referrals from existing clients
- Expand your business without an expensive marketing campaign
- Improve your clients’ understanding of your business and services
- Utilize the expertise of your clients to improve your business
- Identify current service gaps and improve client satisfaction
- Improve client retention
- Improve your consultative sales, active listening and group facilitation skills
- Convert clients into advocates for your business
As you plan these meetings, there are five things you should keep in mind:
- Clients have to value your service and products enough to refer.
- Clients have to know all of your products and services.
- Clients have to know that you want to grow and who an ideal client would be.
- Clients have to have a comfortable plan when they meet someone.
- You have to know how to comfortably approach the topic with each and every client.
In these annual meetings, you’ll be able to update clients on your products and resources as well as on your growth objectives and the ideal client profile. In addition, you’ll be able to collect feedback on their experience and how you can make it even better than it is currently.
Meeting Planning and Implementation
While the idea of an additional meeting with your best clients may seem daunting, it is actually quite manageable. If you spend one hour with 50 clients over the course of the year, that’s 50 hours; factor in an additional 20 hours of planning time for a total of 70 hours. When you consider the potential increase in good-fit referrals, it’s an excellent use of your time.
Step 1. Develop Objectives
In our coaching work with advisors, we recommend a seven-step process. The first step is developing your objectives, both in terms of what you want to talk about and what you want to learn about. For example, your objectives could be stated as follows:
- Ensure my best clients have a clear understanding of my value proposition
- Ensure my best clients understand my growth objectives and ideal client profile
- Get feedback from key clients about their experience with my firm
- Learn how to improve key clients’ experience with my firm
- Get insight into the best way to work with clients to gain more recommendations
Step 2. Select Clients
The next step is selecting clients to participate in the meetings. This involves taking a look at your relationship with the client, both in terms of quality and profitability, as well as identifying the client’s sphere of influence. You’ll also want to evaluate how likely the client would be to refer you and how effective an advocate he or she could be. Finally, be sure you know exactly what services or products you’re providing to this client and whether he or she is aware of the full range of services you offer.
Step 3. Structure the Meeting
A rough structure for your client meeting looks like this:
Introduction (3–5 minutes): Share the purpose of the meeting, explain what you hope to accomplish and summarize the agenda.
Presentation (20–25 minutes): Provide a comprehensive overview of your business plan and business model. Reinforce the value you provide and describe the kind of clientele that can benefit most from your service.