Although most advisers rely on referrals to bring in new business, very few have a functioning referral programme. Most simply wait and hope.

Research published in 2016* revealed that more than 50% of the respondents had referred a friend to their adviser but that only 2% had been encouraged to do so.

We’re all busy of course, and implementing a referral programme might sound like hard work, but it isn’t, will cost almost nothing in time or budget and can deliver a host of additional benefits to the business (on top of profitable growth).

Your easy referral programme in six steps

1. Start by clarifying who you want to be referred to

   Are you crystal clear who you want to be referred to? Are your colleagues? Most of your clients won’t be completely sure, and rather than ask may take the easier route of not referring you.
   
   

2. Plan to refer them first

   The most effective way to convert clients into advocates is to use your network to get them referrals. Those who refer, get referrals.

   Reinforce this by writing them a positive Google Review - and then forward an enhanced version of this to them as a testimonial for their website.

   Some potential benefits to you of doing this:

   • Reciprocated Google Reviews and testimonials for your website (which enhance your reputation as a highly trusted adviser).
   • Improved client loyalty (as these clients should feel more obliged to you).
   • They’ll be more receptive to your cross-selling proposals (now that your mutually trusting relationship has been enhanced).
     
     
3. Become even more referable

   List your top 20 or 30 clients. Ask them what they particularly like about how you work together. Ask them what they would change to improve your services.

   Once you’ve implemented their suggestions you’ll be in a great position to go back to them. People love it when a business takes their advice, and are far more likely to recommend you as a result.

   Now improve your online presence:

   • Decide whether your website enhances or harms your credibility. It should be easy to navigate and clearly demonstrate the value you offer.
   • Collect at least five (but ideally ten) positive Google Reviews.
   • Optimise your LinkedIn profile.

   Some potential benefits to you of doing this:

   • The 20 or 30 clients you spoke to are much more likely to refer you (and to stay with you long-term).
   • Additional time and energy will be invested in your website and LinkedIn profile (improving your visitor conversion rates as a result)
     
     
4. Ask (and make it easy for them to refer you)

   Your clients want to give you referrals, so ask them.

   You’ll also have a number of suppliers and preferred partner companies who you should talk to. Give them a positive Google Review and testimonial, and then ask them as well.

   Think how you can make it easier for them to refer you. For example how might you encourage your clients to put your business contact details in their phone - so that they can contact you quickly if they need your advice - but also have your details immediately to hand to pass on to a friend?

   In addition, use LinkedIn. Do a bit of research so you know why your network’s contacts might benefit from using you. Then draft an email for them to send out.

   Additional benefits to you of doing this:

   • As part of the conversation, ask your suppliers and preferred partners to include a link on their website to yours. This will boost your website’s SEO.
   • People feel good about giving referrals, so by asking, you naturally improve your relationship with them.
     
     
5. Incentivise your clients - and maybe your staff

   Sit down with your team and have a brainstorm. Talk about what you want to do and get everybody’s input. Make sure everyone knows what the company USP is!

   For many people, asking their client for a referral may feel a bit uncomfortable so agree the best way to do this, and whether they’d be motivated by an incentive.

   

   For clients, a donation to charity can work very well, so is well worth considering.

   Additional benefits to you of doing this:

   • If your team is part of the process of coming up with the strategy then they are much more likely to get behind it, and make it a success.
   • Also, just by asking for their input is motivating. For many, being involved in key decisions is the second most effective staff motivator.
     
     
6. Thank - and then keep reminding them!

   At the very minimum, a client who’s provided you with a referral should be warmly and sincerely thanked.

   You might phone them, send a handwritten card or a carefully chosen gift. Whatever you decide, their efforts must be recognised.

   And keep reminding them. For example if you’re using a charity incentive, then promote it appropriately. The back of your Christmas card is a good way to do this.

   Additional benefits to you of doing this?

   • It's rare for businesses to send out thank you cards, so if you do, it really stands out.
   • If it's a quality card there's a good chance that it'll stick around for a while and become a talking point when friends or family visit.

   The more top of mind you are with your clients and the more engaged they are with your referrals plan, the more referral opportunities will come your way. Try these simple suggestions and you’ll be surprised by the new business opportunities that result.
   
   

*A report called "Anatomy of a Referral" conducted by Advisor Impact, Charles Schwab and Texas Tech University.