Why are referrals so important?
Referrals are essential for sustaining the growth of your advisory business. Opinions differ on what it takes to build an exceptional business. Some advisors target percentage growth in their business, while others aim to increase the overall value of their business for resale purposes.
However, referrals establish an instant relationship and provide an important foundation for trust. They also produce better results than other lead-generation efforts or marketing strategies. When someone refers you or your services, it implies a recommendation that increases the likelihood of converting connections into sales.
According to a Nielsen global survey of 29,000 people, 84% of respondents said they prefer "recommendations from people [they] know." In fact, that was the No. 1 response to the question: "To what extent do you trust the following forms of advertising?"
Think of referrals as an ongoing process, not a one-time action. Your ultimate goal is to create new, long-lasting client relationships, which will lead to a consistent stream of referrals in the future.
Here are 10 proven strategies advisors can use to create long-lasting referrals that will provide a big boost to your business:
1. Building a Strong Base of Referrals is a Mindset
When networking and building enduring connections, you need to create a mindset focused on generating referrals.
By prioritizing helping others over focusing on your immediate personal gains, you develop a relationship-building mindset that values supporting people.
If you are attentive to the needs of others and help them reach their goals, it will establish trust and make people feel comfortable referring business to you.
2. Cultivate Strong Relationships
Establishing connections is essential to building referrals. These connections are built on your authenticity, honesty, and reliability.
Being a good listener, showing interest in others, and following through on your promises will help grow your relationships and keep them strong. Remember, building connections takes time and dedication, but it’s an investment that will pay off in the long run.
3. Give Your Network What They Need to Know
Help your network understand what sets your business apart and how you can benefit others. This ‘education’ process is often an overlooked part of the referral process.
It’s more than just making a sale; it means providing your network with the knowledge they need to refer your business to other people. By getting to know your business better and what sets you apart, your potential clients will have a greater understanding of the value you provide.
And the better your network understands your business, the easier it will be for them to recommend you. Essentially, you need to think of it as a ‘training’ process, just like you would with your staff, rather than focusing solely on closing a sale.
4. Provide Top-Notch Service
By providing exceptional service, your clients will be more inclined to refer you to others because they trust the value you provide.
For example, have regular discussions with clients to determine if they have any unmet financial needs and make an effort to help fulfill those needs. This could involve referring them to someone who can better serve certain needs of theirs that you can’t. For example, if your client has a complex corporate tax need, referring them to someone who can help will often be rewarded with future referrals. These selfless acts will go a long way in building trust and increasing the value of your business.
Exceptional service means exceeding expectations, anticipating your client's needs, and fulfilling your commitments.
5. Seek Out Referrals
Advisors often overlook asking for referrals from people with whom they already have an established business relationship. However, establishing credibility with someone first is key. Make asking for referrals part of your routine. By always asking, you keep your services at the top of their mind.
Be specific about whom you would like to be referred to and why. By giving as many details as possible, it will be easier for your clients to recommend you to others.
6. Provide Referrals Yourself
A good way to get referrals is by giving good referrals. When you refer someone, it speeds the growth of the relationship for both parties.
By showing your willingness to assist others, you boost the chances of receiving referrals in return. Make it a habit to look for opportunities to recommend businesses that share your values and standards.
7. Remain Connected
Touchpoints, any point of contact or interaction, are key and show you value the relationship beyond business transactions. This can be done by following up with your network via email, phone, social media interactions, face-to-face meetings, or Zoom or Skype calls.
By staying connected, your business will stay relevant in the minds of your clients. You can also use the opportunity to inform your network about your products or services, upcoming events, or any updates within your business.
8. Utilize Social Media
Social media platforms such as LinkedIn, Instagram, X (formerly Twitter), and Facebook can help maintain existing relationships and sometimes establish new ones.
Social media is also a way to connect with potential clients, share ideas and content, and stay up to date with industry news. It’s essential to interact with your followers by responding to comments, liking and sharing their posts, and initiating conversations.
9. Participate in Networking Events
Networking is an opportunity to meet people, establish and grow relationships, and generate potential referrals. Seek out events specific to your industry and also ones that align with your goals.
Don’t forget to bring your business cards, dress professionally, and have your elevator pitch well-prepared so you can confidently present the value of your business to potential clients.
10. Show That You Are Grateful
It’s essential to express gratitude when someone refers you to a client. Appreciation can be shown by sending a thank-you note, a gift, or offering a discount on your services.
By showing gratitude, you will strengthen relationships and may receive additional referrals in the future.
Putting It All Together
By including referral strategies such as making referrals a mindset, building strong relationships, educating your network, delivering exceptional service, asking for and giving referrals, staying connected, leveraging social media, attending networking events, and showing gratitude, you can grow lasting referrals that help sustain your business growth.
Remember, building referrals is a commitment that pays off over time and demands ongoing efforts. It’s more than just endorsements; it’s about continually building upon your lasting connections within your network.
If you are looking to grow your business, we can help. At Optimize Wealth Management, we can assist you in maximizing the full potential of your offering, taking your business to the next level. Connect with us to schedule your introductory meeting and discover the Optimize platform: http://optimize.ca/introductory-meeting-with-optimize