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Get More Referrals by

Encouraging ‘Active Promoters’ in Your Client List

Get More Referrals by
Encouraging ‘Active Promoters’ in Your Client List

   19th April 2024 by Gareth

   19th April 2024 by Gareth

Arguably, the most important thing a financial advisor must continually do to grow their business is attract new clients. But finding suitable prospects and getting them to trust you with their assets can be tough. Simply asking for referrals from existing clients doesn't often work because of social constraints or lack of clarity on the part of potential referees.

There's a better way. Advisors can seek out what are referred to as ‘Active Promoters’ among their clients. These are clients who are great at recommending the advisor to others in their network. Focusing on this type of client or partner can be a huge help in growing the advisor's business.

Who Are These Active Promoters?

Traditionally, financial advisors have looked to Centers of Influence (COIs) for referrals. They are typically professionals like lawyers, accountants or bankers who have won the trust of their own clientele. But we're expanding that idea here. Clients themselves can be COIs in their own right with a vast network of just the right types of people and the willingness to refer them to you. Clients who already send you promising introductions without so much as a nudge from you are most likely to be your Active Promoters. As your client, they already know the value you bring to the table and can talk about it to their friends and colleagues. You can further increase referrals from this group by organizing a meeting with them individually, and educating them about your ideal client profile and best practices to introduce them.

How to Identify Active Promoters

How to Identify Active Promoters

There are two main ways to discover Active Promoters:

 1. Survey clients to determine their Net Promoter Score (NPS).

It's a simple way to see how likely clients are to recommend you to others. The score measures customer satisfaction based on the probability of the client recommending your business. Responses categorize clients into Detractors, Passives, and Promoters. Here's how you should interpret the NPS scores:
  • Scores of 1–6: These clients are called Detractors. They aren't likely to promote you and may even want to end the relationship. It's important to find out why they feel this way. If they're just not promoters but still want to stay with the advisor, it's best not to ask them for referrals, as it could strain the relationship. If they express their needs have changed or that they can no longer be helped by you, you should consider referring them to someone better-suited. This shows you care about what's best for them and not just your bottom line. Schedule a meeting to talk about any concerns.
  • Scores of 7–8: These are called Passives. They're satisfied but aren’t super enthusiastic about you. They might not promote you to their network, but they're also not likely to leave for another advisor. They might hesitate to say no to your request for referrals, maybe because they don’t want to harm the relationship but asking for them would be a mistake. Advisors should follow up with this group for further feedback to find out why they feel this way and only consider them as Active Promoters if the score improves on a later survey.
  • Scores of 9–10: These are your Active Promoters provided they have a large enough network of good-fit prospects. Some might already be referring you to prospective clients, while others may need a nudge. Either way, the first step for the advisor is to thank these clients and express interest in meeting to discuss further collaboration and opportunities. 

2. Client Meetings

Advisors can also spot Active Promoters during regular client meetings. It's natural to ask clients if they know anyone else who might benefit. But advisors must be careful not to turn off clients with incessant requests for introductions. It's only acceptable to ask for referrals if the client has specifically and explicitly acknowledged the value of the services they've received from you.

At that point, you should first express gratitude for this recognition and only then explore the possibility of these clients acting as promoters. For instance, you might say something like, "Thank you Jonathan for your positive feedback. It's moments like these that remind us why we do what we do. While our meeting today is all about your investment strategy for next year, at a later date I'd like to explore the potential for you to recommend our services to others in your network if that’s ok with you. Are you open to discussing this further?"

Make the request completely pressure-free and back off if you sense any hesitation or discomfort in their response. This underscores your dedication to putting their needs first and honoring their boundaries. And should they agree to having this future discussion, organize what’s referred to as a Dedicated Introduction Meeting.

Dedicated Introduction Meetings (DIMs)

These are meetings where the advisor and the client discuss potential new clients. The advisor’s primary task in this meeting is to make sure clients understand who would be a good fit for their services. The second task is to explore the client’s network, both across social media and in everyday life, for good-fit prospects they can introduce, while respecting the clients' boundaries. Only ask for introductions when it feels natural and don’t push too hard. Ask for permission continually to make sure they feel safe with disclosing any details and are at ease with your requests. Gently nudge them to search for prospective clients within their:
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Coaching Promoters on the Correct Way to Refer Prospective Clients

The process of introducing someone to an advisor can be tough for some clients. For instance, some might not know how to start talking about the advisor to people they know. Others might worry about seeming intrusive, which makes them hesitate to bring it up. Also, not knowing if the introduction will affect their reputation with their network can make them hesitant to take the first step. Overcoming these challenges means giving guidance, explaining the advisor's value clearly, and creating a supportive environment. Advisors can help by showing promoters how their services meet the needs of potential clients, making the introduction more personal. They can also share stories of past successful introductions and provide promoters with the information they need to feel confident.

Saying Thanks

Advisors should show appreciation to those who facilitated introductions with a thank-you gift, irrespective of whether or not those introductions led to new business. It's important to view this gesture as a gesture of friendship, not a transactional business deal. Therefore, offering money or gift cards wouldn't be appropriate. Instead, think of it as reciprocating a dinner invitation from a friend; you wouldn't repay them with cash, but with a thoughtful gift like flowers or a good bottle of wine. Advisors should opt for something personal, thoughtful, and modest.

In the end, finding new clients isn't just about strategy; it's about building real relationships. By focusing on trust and respecting clients' boundaries, financial advisors can open the door to lots of new opportunities.
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