Mastering the art of getting referrals

One school of thought may suggest that if an advisor is so good at what he does, then he shouldn’t have to ask for referrals and that they’ll just come… but what if they don’t? The other school says that not asking is like leaving money on the table.

Part of the sales execution process was that once business was successfully concluded, the adviser would ask to be referred.

The execution process

There were some great suggestions as to how the client would go about doing this for the adviser by giving the names and numbers of their five closest friends and family members, calling would-be customers to prompt them, or inviting the adviser into their business to address their staff.

Advisers were measured on their number of asks and they included the action in their agenda so that it would not be overlooked during the euphoria of closing a deal.

That was a long time ago and the industry has made some progress in professionalising itself with the result that some advisers are thinking differently. Today there are many new and creative ways of prospecting including the likes of social media, for example, Facebook and LinkedIn.

How is it done?

For those advisers that are still growing their client base, asking for referrals is most likely one of their strategies to generate leads.

The question though is how do they go about doing it? Do they plant the seed in the first meeting and then pop the question in the last? Do they hand over a piece of paper and a pen and ask for names? I certainly hope not, for the same reasons as many of the advisers that I have spoken with have given me: it is unprofessional, it comes across as desperate, there is never a good time to do it, it is a mood-changer, it makes the client feel uncomfortable.

One planner for whom I hold great respect, and who is still on a new client acquisition strategy, told me that it is simply embarrassing. “I have never had a doctor, a lawyer or an architect ask me for a list of names, and if they were to, I would be taken aback.”

Strategies to generate leads

Every one of your clients has ‘affected parties’ that are directly or indirectly linked to their financial plans. Beneficiaries, testators, spouses, children, parents, guardians, business partners and shareholders could all be affected by the death, disability or financial decisions of your clients. Although the connections exist, both your clients and their affected parties are most often unaware of the fact, not to mention the associated risks that need to be managed.

As you review your clients’ financial plans – and when you structure new plans for new clients – talk to them about affected parties and the importance of informing such parties of the roles that they play and the practical execution thereof when the time comes.

Suggest a family meeting and introduce yourself to the family, representing your client and his or her interests. Discuss the affected parties’ principle and explain the importance of the meeting.

Differentiating from others

Just having the meeting will differentiate you from any other financial planner they would have engaged, but take the opportunity to touch on what you do and how you do it… with the aim to educate and impress. Review your client’s plan and demonstrate how all present parties are affected and what they need to know. Ask the what-if questions and answer them to everyone’s satisfaction. Take questions and ensure that everyone is comfortable enough to depart with confidence and that they understand their respective responsibilities should the time come to act.

Done right, the result is that sometime subsequent to the meeting you will acquire the affected parties as clients. This level of client focus and genuine care is unseen in the industry yet it will be infinitely appreciated. The affected parties will meet you through an event that is relevant to them and through people that they trust, and they will see you in action, not just through what you have done (your clients) but through what you do (your brief introduction).

Through earlier conversation with your clients you would have had the opportunity to learn some information about the affected parties, effectively qualifying the leads and allowing you subtle choice. You didn’t have to plant a seed or pop an uncomfortable question. You stuck to financial planning process and were put in front of, in most cases, several new, potential clients. Unless you have a proud marketing budget, how else would you achieve these numbers?

Always aim to impress

It sounds simple enough – and it is – but there are some prerequisites to making this work. With a new client you need to build your rapport fairly rapidly because the agreement to put you in front of affected parties rests on your relationship with your clients and their opinion of your skills and ability. The same thinking applies to existing clients - a good testimony to the value that they hold in you. Your ability to appeal to different audiences will be tested because you’ll be speaking to a variety of people that may not share the personality profile of your core clients.

Presentation skills are important if you want to be informative and convincing while, at the same time, selling your services in a discreet manner.

Research and planning for the presentation will go a long way. Learn as much about your audience as you can and tailor your content and format to them. You want them to know that the presentation is original and was customised to their individual circumstances – this is what you do for all clients and affected parties.

Be creative and professional in every aspect of your presentation, from the venue, room and presentation media that you use, to the atmosphere that you create and refreshments that you serve. Everything must work and there should not be any delays or hesitation. Your presentation of yourself and your clients’ financial plans should represent the professional that you are and attract the quality of client that you are looking for.

Don’t compromise in quality; always aim to impress.

You know the six-step financial planning process. I rarely deviate from it in any of my thinking but choose instead to be creative and extract maximum value from each one of the steps, which are designed with the client in mind. If you are genuinely client-focused most answers to questions relating to clients and the prospecting thereof will be discovered naturally by doing what you do, for the right reasons. The benefit of this affected parties strategy is that you are including it in your financial planning process which allows you a subtle introduction to a number of people whom you would otherwise not have met. And you don’t have to ask.