I recently wrote an article referring to the benefits of regularly surveying your clients. The results shared with me recently for one practice were overall very good. There was however an interesting statistic around client responses in relation to referrals.
Business Health Catscan survey reported that 88% of clients responded that they would refer. An excellent response!
The financial planner reported however that during the past year he had received approximately 8 or 9 referrals from clients. That equates to about 8% of his fee-paying clients. Why is there such a difference from the survey response to what is happening in the practice?
We discussed this issue at some length with the financial planner – the key point being if he lifted the rate of referral even to a fraction of number who said they are willing to refer his business would be in a fantastic position to reach the business size he was looking for.
I used to talk about referrals with clients however have not done so for years.
It is interesting that in most Industry surveys “client referrals” show up as the top of the list in strategies for financial planners to grow their business. It is also interesting to note that client referrals are the most cost-effective marketing strategy for financial planners.
When you think about this it makes sense – as you have already established a strong client relationship as evidenced by our survey results referenced above.
Another point with client referrals is that additional marketing dollars do not have to be spent per referral – the business cost is really the financial planners time with the client.
In my experience those that are successful in securing regular client referrals make it easy for clients to think of them. Help your clients understand the type of problems you can help people with (beyond what you have done for them). Also, some information in what could trigger an advice need is important. Your clients look at your business through their own lens or experience – help them with who really you should be speaking to.
Also remember that prospects will want to check you out first via your website. Does it reflect your ideal client and also some client testimonials?
The Advantage Program
Our Advantage Program business coach is already helping our financial planners with referral strategies.
At Futuro have a track record of helping business owners improve their business lives through our Advantage Program.
Advantage is an in-house program delivered by a team of experienced experts and business consultants. They get to know you and your business and show you the most effective ways to increase your profitability. From technology to admin systems, strategy to marketing, they will show you how to create a significantly more efficient business.