Two Steps to Increase Client Referrals

They say word-of-mouth marketing is the simplest and most effective form of marketing. For those of us in the financial advisory industry, referrals are our biggest lifeline for creating new business, yet something many advisors struggle with manifesting. Learning to increase client referrals is somewhat of an art, but can be accomplished by any individual or firm by following two simple steps.

Two simple steps for increasing client referrals:

1. Address Operational Inefficiencies

As RIAs and financial advisors, we’re focused on two main operational components within our businesses: process, and organization. In our profession, these two areas come with the inevitable hours upon hours spent doing the dreaded administrative tasks. Even though we all know that these back-office tasks are vital to effectively manage our current client base, they’re also preventing us from delegating time towards business growth.

Operational inefficiencies are going to break your business. Time is of the essence in our industry, and having any type of process that detracts from properly delegated hours will ultimately decrease your bandwidth to bring on new clients. Without prioritizing efficiency, your productivity will flatline.

The more efficient and organized you are, the better you’ll be at performing your jobs and managing your client base. Don’t think that your clients don’t notice when you’re disorganized. Most clients are able to read their advisors like a book. If your desk is always cluttered with papers and you’re continuously late with sending over contracts, chances are your clients are not going to be sending any referrals your way.

2. Enhance Client Experience

Whether you’re trying to or not, you’re always delivering some type of client experience. Your clients are the backbone of your business, and the fact of the matter is that they can be your biggest marketing assets - if you allow them to be. The more effort you put towards cultivating a meaningful client-advisor relationship, the more distinguished you’ll be in their minds. One happy client almost always equates to at least one new referral.

Client experience should be both automatic and systematic.

The advisory industry as a whole is lacking in delivering a client experience that is consistent and systematic across their brand. Delivering an exceptional experience to only a select few clients may initially bring you an influx of referrals, but in the long run, that upward trend will come crashing down. Your client experience needs to be automatic and systematic, but not artificial.

We know that time isn’t something advisors have excess amounts of, so delivering a consistent experience can be difficult. But with the implementation of technology, you have the ability to not only curb back office inefficiencies but also enhance client experiences, leaving you with the time you need to focus on growth.

Benjamin, a tool made by advisors for advisors, is helping take that 1:1 client to referral ratio to the next level. All it takes is a systematic process focused on simplification and consistent customer experience to turn that ratio from 1:1 to 1:5. Benjamin will systematically enhance your client relationships by:

  • Communicating to clients to set up paperwork and ensure transfers are complete, so your clients will never be left in the dark.

  • Organize and digitally file client paperwork accordingly, so you always have quick, easy access to their information.

  • Create tasks and schedule meetings, so that there’s never miscommunication.

  • Send personalized texts (or emails) to clients to enforce transparency, and allow them to always have insight into their allocations and portfolio growth.

We’d love to help you bridge the gap in your operational and client experience procedures to get you the client referrals you need. Reach out to us here and we’ll get you started with a free demo right away!