Three Keys to Endless Referrals

By Robert Sofia

     Some people will tell you that asking for referrals is the key to getting more of them. This is not entirely true. In fact, if the proper foundation has not been laid in advance, asking for referrals can be an exercise in futility. So what is the key to creating a steady referral stream?

1) Create an experience
Have you ever had such an outstanding dining experience that you simply had to tell your friends and family about it? If so, then you understand the power of creating an experience. From the moment a client pulls into your parking lot, they should clearly see that you run an impeccable organization. Every detail of your office, every interaction they share with your staff, every service issue you help them resolve must be flawless. This is not something that happens by accident. The only way to create a consistent, high-quality experience is to have the right procedures in place.

2) Communicate constantly
Once your clients are impressed with the level of service you provide, your next responsibility is to ensure they don’t forget about you. The old adage "out of sight, out of mind" is certainly true when it comes to getting referrals. Equally, if you make it a point to stay in front of your clients constantly, they will always have you in mind. This way, when their neighbor is complaining that he never hears from his advisor, your client will be quick to say, “You should talk to my advisor, I hear from him all the time.”

Here is a brief look at part of the communication strategy we use to stay in touch with our client base:

• Weekly market update by e-mail (52)
• Monthly wine tastings (12)
• Annual state of the markets workshop (1)
• Mid-year market update workshop (1)
• Quarterly letter (4)
• Account reviews (2)
• Touch-base calls from you and your staff (4) Total Contacts - 76 annually

3) Host effective client events
Once you have happy clients who hear from you all the time, your referral tree will be loaded with low-hanging fruit. To reap the fruits of your labor, you must host effective client events. Effective client events share four basic elements:

1. They are either entertaining or educational in nature, so everyone who attends will benefit in some way.
2. They are advertised well in advance using attractive marketing materials.
3. Attendees are strongly encouraged to bring guests, and are reminded of this more than once.
4. At the event, there is an organized way to capture information from guests who attend, and for them to request an appointment so their interest doesn’t have time to cool off.

     Not all client events are effective. We often hear from advisors who have hosted events where no one showed up or no one brought guests along. Another common problem is that guests show up but do not request appointments. If this has been your experience, rest assured that there are solutions to these problems. By following the procedures mentioned in this article, you can overcome the aforementioned obstacles and reap the benefits of a healthy, flowing referral stream.