Five steps to drive referrals for your firm

As every advisor knows, your best tool to drive new business isn’t an ad campaign; it’s your existing clients. Clients, friends, and family are the largest source of new business for RIAs, with referrals driving 55% of new clients.¹ When a satisfied client introduces you to a close friend or family member, you’re in a much stronger position to win the business compared to a cold outreach.

You know the value of referrals, so how can you find more of them? Here are five tips that can help you grow your practice through client introductions without adding friction to the process.

1. Make referrals part of the culture

While consistently delivering excellent service can naturally lead to some referrals, being intentional about creating an environment that actively drives referrals can multiply your results.

Normalize referrals in your client interactions and make it an ongoing topic. After a big win, such as a client finally purchasing their dream home, remind them you’re open to meeting others who could benefit from your expertise. Let clients know you’re interested in growing and to keep your firm in mind for anyone in their network that might benefit from your services. People may not realize you’re accepting new clients until you ask.

If you feel uncomfortable asking directly, include a note about referrals at the end of emails or newsletters, in social media posts, or on a sign in the office. If you send out client satisfaction surveys, you could include a section to list possible referrals. The subtle but constant reminders increase the likelihood that clients will think of you when they hear of a contact in need of financial advice.

Finally, connect with centers of influence in the business community such as attorneys, CPAs, and small business owners. You can find them through BNI groups, the local Chamber of Commerce, and other networking groups. Strong relationships create a two-way street for referrals.  

2. Give clients something to share

Another way to spread the word about your firm is to give clients something of value they can share with their network, such as:

• An email newsletter with financial tips
• A blog post or article covering a topic of interest to your clients, whether that’s equity compensation or profit sharing best practices for medical practices
• A social media account covering investment insights
• Educational seminars
• Client appreciation events where clients can bring guests

Flourish Cash^† is another easy, effective way to spread the word while adding tangible value. Clients who are earning a competitive rate on their cash are often excited to share invitation-only access with friends and family.

Within Flourish, clients can send a referral to their advisor, which includes the referral’s contact information, financial planning areas they may need help with, and whether they are looking for an advisor. This information gives you the opportunity to connect with the referrals and start a relationship by giving access to a Flourish account. Even if they don’t immediately become a client, they are able to see your firm’s logo each time they log in or interact with the platform, reinforcing your brand.

What’s critical? Let your clients know that you are happy to invite their friends and family to Flourish — and that you use this as a way to expand your network. If clients don’t hear this from you directly, they may assume you’d prefer not to receive referrals through Flourish.

3. Reach out immediately

Warm leads cool quickly, especially online. A Harvard Business Review study found that when a company contacted an online lead within an hour of receiving a query, they were 60 times more likely to qualify the lead than if they waited 24 hours or more.² If you receive a referral through a system like Flourish, reaching out quickly increases your chances of conversion.

Responding promptly is easier when there is an established process in place. This might start with a prewritten email customized to the individual along with a link to schedule a meeting within a week, followed by a second message with firm materials and testimonials from other clients. 

4. Track and stay in touch

Not every referral will become a client immediately or even be ready for a face-to-face meeting. Sales prospecting research shows it can take eight touchpoints on average to convert a lead of any kind into a client.³ Stay in touch with your referrals. Strategize the best time to reconnect, like for a referral’s birthday or upcoming life events.

Collect what data you can and set goals for specific referrals, whether that’s an upcoming business sale or a new child on the way — then reach out to share advice related to that event.
Countless advisors use Flourish Cash with prospective clients, whether or not they originally were generated as a referral. Whether they are hesitant to enter the market or already work with another advisor, by providing a cash management solution that is branded with your logo — which can all be tracked within Flourish — you have the opportunity to add value while staying top of mind.

5. Invest in a first-class client experience

If a client provides a referral, thank them warmly, and even consider giving them a small gift – in accordance with firm policy and SEC regulations – so they’re motivated to do so again.

Ultimately, happy clients are more likely to spread the word. By consistently delivering exceptional service and offering valuable tools like Flourish, you can turn client satisfaction into a steady steam of referrals now and in the future.