May 16 2022
How can you get referrals from your existing clients?
By Alok Tarafdar
A referral is one of the most inexpensive yet powerful tools for financial advisors to build their practice. Clients refer you to their network when they are satisfied with your service. And the power of happy clients sharing about you through word of mouth is immense; there is no doubt about it.
The question is, what is the mantra or formula to get referrals from your clients? Ruchi Agarwal, a five-year MDRT member from Ahmedabad, India, shares some smart tips that would help you to achieve the same.
Always follow up
Following up with your old clients is an important part of business growth. You have already served them many times in the past few years. They are delighted with your work and loyal to you. So, when you reconnect and touch base with them, they will obviously remember you and are more likely to actively participate in helping you. “This practice places your name at the top of their minds, which naturally pushes them to share your name first when they hear of anyone looking for insurance advisory services,” Agarwal said.
Time it properly
When to ask for a referral is as important as how you ask. You should not ask your client for it during sensitive times. Agarwal explained, “Picture this: the client did not like your service or faced some issues midway. He is already unhappy or annoyed to some extent, and you ask him for a referral. Well, that is an example of bad timing.” It is always recommended to wait until you know your client is in a good mood or satisfied with your service — this is the green light you should always wait and look for. Wrong timing will only reduce your chances of securing prospects.
Reward your clients
Everybody loves rewards, so offer some incentives to your clients when they refer you. For example, Agarwal suggests you can give them freebies or gift cards. These work well and encourage clients to promote your service across their network. “In fact, it is also a good way to make clients your brand ambassadors as they would want to talk about their experience and how satisfied they were with your service. Although it is a small investment from your end, it holds great potential to reap larger benefits,” she said.
Thank your clients
Many people like to help others. It makes them feel good. As a result, you must always thank your client once you have received a referral from them. Doing so shows how they are contributing to your business and helping it grow. It shows how much you value them through your appreciation. This is a brilliant way to keep them encouraged in referring your services to others.
“Referrals hold great significance as they require virtually no financial investments and can turn your business around. So, keep the aforementioned tips in mind, for it will help you scale your practice to new horizons,” Agarwal said.