10 strategies for getting more referrals from existing clients

Summary

• A business referral is a recommendation of your company by a client or another third party for excellent products, customer service, or value for money.

• Knowing how to elicit new business referrals from existing clients is an invaluable marketing skill that will benefit any financial advisor if they master the necessary strategies.

• A World Wealth Report by Capgemini discovered that 44.4% of high-net-worth clients chose their financial advisers based on referrals from friends or business contacts.

What is a business referral?

A business referral occurs when a client or any other contact recommends a company to another person who may need similar products or services. Each business referral converted into a client is equivalent to a new revenue stream and a new client to leapfrog onto a new referral, a repeating, cost-effective, and potentially self-sustaining lead generator.

What are the benefits of getting referrals from existing clients?

Getting referrals from clients is a particularly satisfying way of attracting new customers to your business because they do most of the work. Referral marketing can benefit your company in several ways:

• There is almost no cost involved. Getting referrals from clients reduces the need for extensive marketing campaigns, saving you time and money. 

• Referrals build trust and credibility. Referred clients are more likely to trust your services because the recommendation comes from someone they know and trust. Statistics indicate that 92% of people trust referrals from friends and acquaintances.

• There is a higher conversion rate. Prospective clients who come through referral marketing channels are often more serious and ready to engage, leading to higher conversion rates, especially because the recommendation came from a trustworthy source.

• Referral leads have a longer customer lifetime value. Studies show that customers coming via referrals have a 16% higher lifetime value compared to other clients.

What are the top 10 ways to get referrals from clients?

There are multiple methods of getting referrals from clients, and mastering these top ten referral marketing strategies will help you extract the most out of your existing customers.

1. Customer loyalty programs

Establishing a customer loyalty program can significantly improve client retention and encourage referrals. 

Loyalty programs make clients feel valued and appreciated, motivating them to spread the word about your business. Rewards could include free financial planning sessions or discounted advisory fees.

2. Keep your current clients informed about the products and services provided

Regular communication with your clients regarding new products and services or changes in the market shows you are proactive and dedicated to their financial well-being. Staying engaged with your clients through newsletters, webinars, and personalised emails can be effective tools to nurture relationships with them.

When clients are well-informed and see the dedication and continuous value you provide, they are more likely to refer your services to others. 

3. Keep your LinkedIn up to date

LinkedIn is a powerful digital marketing platform for financial advisors, and it should play an integral role in your referral marketing strategy. It’s an excellent place to update your profile with your latest achievements, as well as new products and services. 

Adding regular, relevant, engaging content, connecting with your network, and showcasing client testimonials can increase your visibility and credibility.

4. Offer referral incentives to clients

If your clients are happy with the services you provide and the relationship you have with them, they will readily recommend you to people in their circles. However, most people enjoy a small gift of appreciation. 

Offering incentives like discounts on future services or a gift card for each referral who signs with your company is one of the best ways to get referrals from clients, as it will give them an added reason to recommend your services.

5. Provide current clients with consistently high-quality service

When clients experience exceptional service every time they interact with you, they are more likely to recommend your business to others. This means being responsive, providing excellent and timely advice, and going the extra mile to meet their needs. 

Above all, clients must feel they have a genuine relationship with you and that you always act with their best interests at heart. Satisfied customers will naturally want to share their positive experiences with their network.

6. Align your values with your client’s values

You are more likely to get referrals from clients if they feel a strong alignment between their values and yours. This involves understanding their financial goals, ethical considerations, and personal preferences. 

7. Act on positive feedback

Positive feedback is a goldmine for getting referrals from clients. When clients express their satisfaction, invite them to pen a testimonial for your website or marketing materials.  BrightLocal research found that 50% of prospects trust consumer reviews as much as recommendations from close contacts. 

8. Educate your clients

Educating your clients about financial topics not only empowers them but also builds your credibility as an expert. You could host webinars or send out helpful articles and videos. Education fosters trust and positions you as a thought leader in the industry.

9. Make your product experience shareable

Referral marketing strategies can include easily shareable content, like blog posts, educational guides, and interesting videos. Social media is a vital vehicle for sharing content, so always add sharing buttons like “Share to Facebook” to your email marketing campaigns, blog posts, websites, and your own social media pages.

10. Just ask for a referral

Although sometimes awkward, requesting referrals from clients can be highly beneficial for your business. Tact and timing are essential, but you could approach them in various ways, including:

• Thank them for their loyalty and ask them to pass on your business cards to others needing similar services.

• Send follow-up emails to customers, thanking them and asking them to fill in an online review.

• Add a CTA to your email signature, asking your clients to share your contact details with friends and family.

Want to work with Unbiased?

There are many strategies for getting referrals from clients, but the basis of all of them is to ensure you offer excellent customer service and build trust and credibility so that your clients are excited to tell others about your business. Above all, never stop searching for ways to increase your client base. 

If you want to grow your business, Unbiased Pro can help. We will connect you with customers who are looking for exactly what you have to offer.