Marketing

Why you’re not getting referrals

 |  Antoinette Tuscano, MDRT Content Specialist

Did you ask your client for a referral? If you’re like 60% of advisors, you didn’t even ask.

In fact, not being asked is the No. 1 reason financial advisors don’t get referrals. Another reason is advisors ask so indirectly that clients don’t even know they’re being asked, according to a focus group.

“What I find is that most advisors, when they really lay out their method of asking for referrals, are not asking anything,” said Dan Allison, the founder and president of Feedback Marketing Group.

Why clients say they don’t give referrals

The other reasons clients gave for not giving referrals were the following:

  • I don’t understand with whom my advisor wants to work
  • I don’t know how to explain what my advisor does
  • I don’t know how to make an introduction

How to get referrals

To start, conduct annual meetings with clients where you

  • Update clients on your products and resources
  • Update clients on your growth objectives and ideal client profile
  • Get clients’ feedback on their experience and how to make it better
  • Lastly, ask your clients for a referral. They may not know you’re taking new clients.

How to ask for referrals

For many people, it’s awkward to say, “Who do you know? Introduce me.” Allison advises trying this method instead: “I want to serve you well enough so that you want to tell other people about us. Our preferred way of growing this company is through referrals. How do I approach the topic of referrals with you in a way that’s comfortable and does not compromise our relationship?”

Put these strategies in place for more high-quality referrals, better client retention and stronger relationships and communication with your clients.

From the 2015 Annual Meeting presentation “The 5 myths you tell yourself and getting referrals — and the real truth,” which is available for download or as a video.

For more about referrals

 

 

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