By Michael Byrnes
Techniques for gaining more business through client referrals were among the topics broached at the IMCA 2011 Winter Specialty Conference in Vail, Colo.
"The theme of referrals was recurring throughout the conference, and we are confident that the advice and tips on this topic will help our members in 2012 and beyond," IMCA spokesman Ryan Hoffman said.
Edwards Holliday, president of Atlantic Leadership Group said 71% of advisors plan to increase their new business activity.
Linda Stimac, chief creative officer at RainmakerDNA, said her firm's research has found that 95% of advisors are struggling with referrals. "Beliefs have to be in line with our actions," she said. Advisors are hampered by the belief that it is not right to ask clients for referrals or introductions.
Advisors might have valid reasons for not wanting to ask for referrals, some speakers said. David Richman, national director at Eaton Vance Advisor Institute, asked the attendees, "How would it be if your doctors hit on you for their next patients?" Would you lose some faith in them? He explained that advisors do not want to ask the wrong way and have their clients question if they are really the best at what they do.
"I have a strong belief [that] rich clients do not want to be hit on to grow your book. They don't want to be saddled with that responsibility," he said.
Referrals normally happen through the course of normal conversation, he said.
"People are talking about money more than before. In more normal times, that doesn't happen. It is a great opportunity for you," Richman said.
He asked if the attendees were getting lots of calls on Monday morning. "If not, why not?" Richman said. The best advisors are getting Monday morning calls because their clients are talking to their social connections over the weekend, he said.
Richman told advisors to develop and deliver their own thesis, encouraging the attendees to have an opinion of what lies ahead. "People are not buying pie charts these days. They are buying wisdom," he said, describing a range of ways to consistently communicate with clients to get that wisdom across:
Monthly calls
White papers
Newsletters
Public appearances
Social media
Ed Jacobson of Edward A. Jacobson Associates said that successful advisors reach out to their clients two to three times more frequently. He suggested aiming for 12 to 20 client touches per year. No matter the frequency, each touch is an opportunity to share wisdom with your clients that they will helpfully share with their contacts, he said.
A memorable, personal brand
Individuals do not know what to believe anymore. However, they will believe in someone that has a clear view and acts as a leader, Richman pointed out.
When the conversations take place, an advisor needs to convey his brand, said Richman. "It should not make you sweat when someone asks you what you do," he said.
He gave the following steps to define and build a brand:
Write a positioning statement.
Determine where you want to live in the minds and hearts of your clients.
Clarify your passions.
Develop a story from your life so you don't just sound the same as every other advisor.
Richman stressed, "Your passion that you bring to this life has everything to do with how to differentiate yourself," he said.
It is important to have an ideal client profile, he said. To create one, characterize your best clients. "Who do you work best with?" he asked. It is also good to know if you have a poor chemistry with certain types of clients. With the best clients, know:
What are their habits?
What is their decision-making style?
What is their communication style?
Also, ask clients:
What do you think of me? What words comes to mind?
What makes us different?
What do we really do well?
With all this information, Richman believes you can build a brand. He said to not use "brochure speak, but more people speak." Once you have it in place, communicate your brand consistently. "It needs to be embedded into all your conversations. Live your brand. It needs to be real. It has to be grounded in truth," he said.
Ways to get referrals
Mark Smith, principal of MJ Smith and Associates and affiliated with Raymond James Financial Services for the past 13 years said he had success putting six clients on an advisory board. "We are creating advocates," he said.
"When they hear about you, and know more about what you do and how you are different, they want to be out there and be your advocates," Smith said.
Smith shared other referral tactics:
A business owners advisory board.
A client referral appreciation dinner.
A handout that says, 'A referral is the best compliment we can receive."
"Marketing is a numbers game," Smith told attendees. "You must get face to face."
Mike Byrnes founded Byrnes Consulting to provide consulting services to help advisors become even more successful. His expertise is in business planning, marketing strategy, business development, client service and management effectiveness, along with several other areas. Read more at www.byrnesconsulting.com.