“I let them know I would like referrals.” Very infrequently will financial advisors not be interested in receiving client referrals. However, simply letting clients know they want referrals rarely produces results. Especially asking for generic referrals does little to produce them. By adding value in various forms and identifying whom clients can refer, the probability of getting client referrals goes up exponentially.
Previous research showed that many financial advisors could in one year:
• Increase revenues by 40%
• More than triple the number of new clients through client referrals
To get these kinds of results requires financial advisors to …
1. Recognize they have to take action and be motivated to deliver greater value to their clients.
2. Incorporate various processes into their practices that would facilitate their ability to determine where they can add value and how to help their clients refer others to them.
The first issue is recognizing that they are working to enhance the financial lives of their clients. Yes, they will economically prosper, but it is all about bettering the lives of their clients.
As for the second issue, highly effective methodologies can assist financial advisors in determining where they can add value. One approach utilizes the “Whole Client” model. In using this approach, financial advisors are able to develop a deep understanding of their clients—their hopes and dreams, their concerns and anxieties. Very often, greater insights translate into ways financial advisors can use their expertise to add value.
Another established approach is to provide clients with high-quality thought leadership content. The content can be created or curated or both. The best approach to providing content depends on the abilities of financial advisors and their firms to produce a constant stream of high-caliber materials.