Referrals are a great way for financial planners to get more clients. With referrals, it’s easier to make appointments and close deals as a level of trust and credibility have already been established with the potential client. In fact, many studies have shown that most investors found their financial planner through means of referrals, and people tend to sign on to become a client when they are referred to by a friend.
But sometimes, it’s easier said than done. Most financial planners know that referrals are the best way to generate business, but they struggle to do so. Aside from getting out of your own comfort zone to tap into your network, it is important to be clear on whom you want to attract as clients.
Here are 4 referral ideas for financial planners on how to get more targeted referrals that work:
1. Add a Personal Touch for your Top Clients
It makes sense for financial planners to ask for referrals from their own happy customers. Their circle of contacts is likely the referrals that you are targeting and if they’ve had a good experience with your services, are the most likely to recommend you to others. Focus on the people who are most likely to give referrals or have done so in the past. A little personal touch goes a long way. What we mean by that is to treat your client as you would a friend – take a little extra time to prepare a gift for their birthday, support their hobby or side hustles, or even treat them to a meal on a random day. It doesn’t necessarily have to be something in monetary form, but such gestures make clients feel valued and they will be more than happy to provide you with referrals in the future.
2. Host a Small-Scale Networking Event
Intimate social events allow for the perfect opportunity to meet new prospects without spending a lot of time or money. Plan an activity like wine tasting, golfing, or cooking and invite a few clients. On the event invite, you could mention that every person who brings along a referral will receive a gift. Something like a bottle of wine or gift cards could be a good gift. In fact, you could use this tip too for business events where a plus one or referral is applicable.
3. Reward Referrals, Whether Successful or Not
On that note, be sure to thank your client or referrer when they refer a prospect. Every referral, regardless of the quality, should be appreciated as these people understand that you are running a business and are helping you to build your business. You could go the extra mile if the person that they referred does end up being a client, by giving a thoughtful gift. Another good practice is to follow up with the referrer on whether you were able to help the person they referred – it makes the client feel like you genuinely care about the quality of work with everyone.
4. Plant the Seed of Referrals
Sure, it would feel awkward to ask about referrals straight up, but there are workarounds. Start small – each time you sit down with a client for a review, you should be talking about referrals. Let them know that you are open to meeting with prospects that they may recommend, and you would be happy to speak with them, seeing as they were referred to by your top client. Make it clear that your existing clients are still a priority, but referrals are a part of your job and that you are open to this prospect.
At the end of the day, financial planners earn the privilege of mouth-to-mouth referrals by providing great service to their clients. When someone believes in your service quality, they would naturally recommend it to others. Thus, always think about “How can I be of greater value?” instead of going in too strong and scaring your potential prospects away or giving your existing clients a distaste of a referral program. As with anything, strategic planning and effort are required. Speak to EVOL today, and we will be more than happy to impart what we know to help you succeed in this industry!