Referrals are a great way to get new clients. However, consistently getting new leads through the referral channel is not easy.
Here are six tips that will help you get maximum referrals from your clients.
Mine your network
Make a list all your friends, family and acquaintances and see who you can on board as your clients.
You can use social media to target clients. For instance, if you want to target a corporate, check the social media page of their top management. Both Facebook and LinkedIn show if you have any common connections. You can request your connections to introduce you to the clients you want to on board.
Regularise the process
Vishranth Suresh of AssetPlus, an online mutual fund platform, says that they have made referral request a part of their client portfolio review process. After every review, the advisor asks the client for referrals.
Moreover, the platform sends a referral request notification to a client when he achieves a financial goal as they are more likely to give referrals.
Incentivise your clients to give you referrals
Online platforms like FundsIndia and Groww have a referral reward program for their clients. Srikanth Meenakshi co-founder FundsIndia shares that they give gift cards to their clients on successful conversion of their referrals. Groww offers their clients cash reward under the referral program if the referred investor invests a minimum of Rs. 2,000 with them.
Build professional connections
Trade contacts with CAs, lawyers whom you know and respect. Request them to recommend you to their clients looking for a financial advisor; you have to return the favour. Along with more referrals, such a network allows you to offer complete holistic financial planning advice to your clients. This includes tax planning and will and estate planning.
Make them feel that they are helping their friend not you
While asking for referrals, advisors should remember that clients are more likely to give referrals if they feel that they are helping their friends rather than helping you. When a client refers you to someone, he puts his reputation at stake for you.
To make your clients realize this, keep your clients in loop about the progress of any referral recommended by them; tell them how you have helped their friend (without giving away any confidential information!). Knowing that you did a fantastic job with a referral will put his mind at ease and he will readily give you more referrals.
Define your ideal client profile
At times, clients may want to give you a referral. Help them in this process by defining your expertise. For example, you can say, ‘I have experience in working with small entrepreneurs and business owners. I have helped them grow wealth despite their irregular income.’ Being specific makes it easier for client to identify if he can refer you to any of his acquaintances.
Happy clients equal more quality referrals
The final one is a no brainer. Many advisors have shared that happy clients recommend them to their friends and family without being asked to. Generally, these referrals are easiest to convert to a client. Sharing his experience, IFA Ranjan Panigrahi says, “As you have been recommended by someone the client trusts, the prospective client comes with a mindset of hiring you.”
Few points to keep the referrals flowing without you having to ask for them: Provide clients with genuine advice, which is in their best interest and impeccable service. This includes hand-holding them in volatile markets and guiding them against any unwise investment decisions. This will build the client’s trust in you. Only when a client trusts both your intention and quality of your advice, will he recommend you others without any prodding.
IFA Meenakshi Sikchi shares that educating her clients thoroughly about financial products before recommending investments and focussing on their dreams and aspirations rather than financials has made her clients her advocates.
This article was published in Tata Mutual Fund's monthly newsletter