The best way to generate strong referrals is also the simplest

More than 90 per cent of financial planners’ clients would be happy to refer friends and family to their planner, but a recent survey by corporate coaching and leadership consultancy iCommunicate indicates that 77 per cent of these people have never even been asked for a referral.

Speaking at a workshop run last week in Sydney for the Stella Network – a network designed to support women in financial planning – iCommunicate director Andrew Whelan said planners were generally very good at building networks, developing strategies and servicing clients but often found asking for meetings, commitment or referrals challenging.

“In general, clients will be less likely to recommend you to family or friends if they are not asked for referrals,” Whelan said.

“They just don’t think to do it.”

Financial planners attending the workshop were shown firsthand the moments where good interaction primed the planner to ask for action – whether it was to make an appointment, ask for commitment with a statement of advice (SoA) or ask for a referral.

Life imitating art

It was a case of directing life to imitate art when a group of actors showed planners at the Stella Network workshop the difference between successful client meetings and those meetings where asking for action was not going to be possible.

Planners who achieve the most success in generating referrals tend to have a comfortable way of asking for referrals embedded in their process.

“One of the most natural parts of the process for referrals is in the SoA presentation meeting, after recommendations have been presented and before signing paperwork,” Whelan said.

“Ask your clients ‘How have you found the advice process?’ If they answer positively, explain to your clients that your business is built on word of mouth. Then ask something like: ‘Can you think of anyone you know that would benefit from this process?’”

Stella Network leader, BT Financial Group senior marketing specialist Julia Newbould, said female planners said they often find it more difficult to ask for business.

“They are able to successfully network, make introductions for other colleagues, and happily help others build their networks and their businesses,” Newbould said.

“But when it comes to asking for things that will help their own business, they find the conversations more difficult.”