How do I get more referrals?
This is typically the first question financial advisors ask when they are looking to grow their business. The trouble is, with all of the marketing strategies that exist in the world today, the solution to that question is often muddled and uncertain. As a result, many financial advisors are often only doing the bare minimum for their clients while still expecting countless referrals in return.
This is unrealistic for real business growth. In actuality, it should be the other way around.
Referrals are the result of a stellar marketing and service strategy, not the initial focus.
Think of it this way.
The first question ought to be: How do I take better care of my clients? When advisors take better care of their clients, they immediately become more referable to their clients’ friends and family members.
And reciprocity is what makes it work.
Essentially, reciprocity is about balancing equations. On one side of the equation, a financial advisor treats his/her clients exceptionally well (e.g. better service, more events, frequent and relevant communications, regular acts of kindness, etc.). An unconscious urge is then created as clients will feel the need to bring the relationship with their advisor back into equilibrium (e.g. give more referrals and not keep the advisor a secret) – thus balancing the equation. This means that an advisor who is doing more for his/her clients will have more clients wanting to repay the advisor in kind.
Very few people ignore being showered with great service and generosity. It creates a great story and they want to brag about it to everyone that will listen.
Think about the last time you received a gift from someone you cared about. How did that gift make you feel? Did you keep that gift a secret? Maybe it wasn’t about the gift at all, but instead you might have appreciated the fact someone else thought of you and took the time to give you something. Maybe it was the action of gift giving that created the wonderful experience.
Here is where it gets interesting: Did you feel the urge to send a gift in return? In many cases, when a person receives a gift, there is an unconscious desire to return the favor.
This social concept has seen many forms throughout the centuries, but perhaps the most intriguing comparison is to Isaac Newton’s Third Law of Motion: Every action has an equal and opposite reaction. For a financial advisor, this means that for every great action that is performed for a client, that client will want to return that action in kind.
To keep positive business growth in motion, advisors need to consistently work to bring the relationship equation out of balance; and taking insanely good care of clients is the key. Clients will then feel the inner pull to bring the relationship equation back into balance.
Conversely, inaction from an advisor will result in inaction from his/her clients. You cannot ask for referrals if you have not done what it takes to earn them.
If your business growth has slowed down or even stalled out, it might be time to evaluate your actions and how clients are responding. Your Marketing Specialist here at Platinum can walk you through all aspects of your business (everything from your branding and communications to your office systems and prospecting) and show you what others advisors have been doing to successfully build a strong referral stream. Give us a call; building for the future starts with your actions today.