Referrals are the backbone of any advisory business. Sometimes lack of clarity on what the next step should be when you receive a referral spoils the chances of acquiring a new client.
Here are a few tips on how to convert a referral into a client.
Do your homework
Do research on referrals before approaching them. Go through the referral’s social media page and try to get some information about him/her. This will give you the upper hand during a conversation and will help you connect better.
Contact them immediately
When you get a referral’s name and contact number from a client, it is probably because they are going through some financial trouble, be it regarding tax planning or a huge loan book. That is the reason your client referred him to you. So do no waste time and call that referral on a priority basis.
Ask their requirement
When you have contacted the referral, introduce yourself first and the client who gave the reference. Then ask them their problem and the solution they are specifically looking for. Talk less and listen more. Also, be attentive when listening so that they do not have to repeat themselves.
Offer them your services
Once they are done talking, it is time for you to highlight your services. Provide them with the solution that can take care of their situation.
If they are aware of your credibility or expertise, they will understand the value of your words.
Set an appointment
If your services can fulfill their requirements, the next step is to set up an appointment. Instead of asking ‘When would you like to meet?’ ask: ‘Can we make it on Friday at 2.00 pm?’ (or whatever time and day you prefer). Asking to meet on a specific day and time shows commitment.
Thank the client
Show gratitude to the client who gave you the reference. Let them know that you spoke to the referral and whether or not you are meeting them. Also, thank them even if you did not manage to onboard the referral. You can send them a handwritten thank you note or a bouquet to show gratitude and encourage them to get more referrals.
Track your referrals
Tracking your referrals is necessary to understand the performance of your business. Keep track of the number of referrals you received, your conversion rate and who gave you the referrals to help you understand the business you are generating from referrals.
