Referrals are crucial for financial advisors to increase their business. The value of a client acquired through recommendations is greater than a client obtained by any other way. Regardless of this, advisors feel uncomfortable asking for referrals. But, the fact is that if you know when to ask, many of your clients will happily refer you to their friends or relatives. Here are the top 4 ways of acquiring referrals:
1. DEVELOP A REFERRAL PLAN
Never depend on growing your practice through unplanned referrals. Make a systematic referral strategy and make sure you follow it. A useful tip is to set reminders so that you don’t forget when you have to call clients for recommendations. Always keep track of your progress and make changes in your strategy if required for better results.
2. HAVE CONFIDENCE IN YOUR SKILLS
You have helped several clients realize their goals and possess all the expertise of an outstanding financial expert. However, if you don’t have faith in your capabilities, you will be unable to communicate your worth. Overcome your anxieties and be confident about your knowledge and customer service. Focus on your soft skills. Only if you present yourself as smart and self-confident, your clients will be pleased to introduce you to others.
3. ASSURE CLIENTS THAT THEIR REFERRALS WONT BE DISAPPOINTED
Make your clients believe that their friends or loved ones will highly benefit from the financial advice you will provide to them. Moreover, tell them that you will offer top-notch service to their referrals and exceed their expectations.
4. WAIT FOR THE RIGHT TIME
Clients are likely to refer you only when they begin trusting you and develop a strong rapport which can happen over a period of time. Once a client is confident about your capabilities, they will readily suggest your name to others. It takes a long time to establish a deep bond with clients; therefore advisors must wait before bringing up the topic of referrals.