Want to grow your business? Harness the power of referrals. Global research company Nielsen found that 92% of consumers around the world say they trust word-of-mouth or recommendations from friends and family more than any type of advertising. That’s up by 17 percent since 2007.
The case for referrals is strong in wealth management, too. In the 2016 Cerulli Advisor Metrics survey, 66% of advisors said that referrals from clients, friends and family members were a major source of new business, while an additional 16% cited referrals from CPAs, attorneys and other professionals as critical to their business building efforts.
And a new survey from Outbound Engines found that referrals topped all other marketing strategies for financial advisors, with 92.2% citing them as an important tool.
A new white paper sponsored by Premiere Trust, shares the referral cultivating strategies of four successful advisors and identifies five key ways to maximize referrals, including:
- Solve a problem over and over: The most powerful referrals come when you’ve provided a specific solution to one of your clients — and your client tells other people who have the same problem. From navigating the financial impact of divorce, to figuring out how to exercise stock options, to guiding a couple through the estate planning implications of same sex marriage, our successful advisors have demonstrated problem-solving skills that apply not just to one client, but to many.
- Have a niche: You’d think it would be easier to get business if you’re willing to do anything, but paradoxically, financial advisors who specialize seem to have an edge in generating and converting referrals. Look through your current book of business for patterns – are their types of people or work that you’ve been successful with already? Then see if you can build on that success to attract referrals and new clients.
- Establish expertise: Once you’ve identified a niche, you’ll want to prove your expertise in it – by creating social media content, giving seminars, writing op-ed columns or getting involved in professional organizations focused on your area. Your goal is to become the person that individuals naturally turn to when they have an issue in your area of expertise.
- Create a network of professionals: Form relationships with lawyers, accountants and other professionals who serve the same client base as you. And remember, referrals are a two way street. You’ll need to give them in order to get them.
- Be proactive: If your client mentions a possible referral, ask for the person’s name and number and follow up within 24 hours. Don’t wait for the prospect to contact you, but rather reach out to them to offer your assistance.
For more information, download our free white paper, “How To Ask For A Referral? Financial advisors share strategies for attracting and converting referrals.”
