Boosting long-term business growth: three easy steps to getting more client referrals


Most clients are willing to refer but a much smaller percentage actually do. So how can you tap into this growth potential for your business? In this article we share three key elements of a successful referral strategy.

If referrals aren’t happening in your advice practice, this can be down to some psychological or practical barriers standing in your way. Once these barriers are uncovered, you may find that they are relatively simple to address:

  • You may be reluctant to bring up referrals if it feels inappropriate and makes you uncomfortable.
  • Clients may be under the impression that you’re too busy and wouldn’t welcome the extra workload.
  • It just doesn’t occur to you or your clients to bring up referrals.
    Putting together a successful referral strategy can be straightforward when you take time to reframe the process for you, your clients and your team. Changing your thinking about the purpose and process around referrals can be just the catalyst you need to start harnessing this valuable source of new business. Here are three tips from our expert partners to support a more effective approach to referrals:

1. Understanding what motivates clients to refer your business

Advisers can often feel uncomfortable about asking clients for referrals. Putting yourself in the position of asking clients to do something that will benefit you and your business can feel very awkward. But when you realise that referrals are really about clients helping out a friend or family member, it doesn’t seem inappropriate at all.

Let’s take a hypothetical scenario. Susan is talking to her friend Bill about her plans to renovate their house. Bill recommends a fabulous architect he used for his own renovation. Bill’s motivation is not to help the architect to grow his business but to be useful and helpful to his friend. It’s about improving his relationships with people he cares about

Looking at referrals in this way can remove any sense of discomfort. When referrals help your clients to strengthen their relationships, it’s a process that can serve both your needs. If referral conversations are still challenging, having a referral script to guide you is also a great way to get comfortable with the process.

Take the next steps

  • Explore BT Panorama
    Increase efficiency and client value with online consent, our award winning mobile app and more.

2. Letting clients know you’re busy is counterproductive

Given their motivation for referring, clients are far less likely to give referrals when they don’t expect things to work out. They don’t want to put their relationship at risk so it’s very important they feel confident that a referral to your business will result in a prompt response and excellent customer service.

When you tell clients how busy you are, they can take this is a sign that you’re already running at maximum capacity. Instead of sharing the ‘we’re really busy’ message with clients you can be just as positive about your business with one of these phrases:

  • “Things are going great.”
  • “The team is working really well.”
  • “We’re growing steadily and getting some great referrals.”

3. Bringing referrals into client conversations

Clients are far less likely to make referrals when it’s just not on the agenda. And even if you can get past a reluctance to bring up referrals, it may not be easy to fit it into conversations that are focused on building relationships with clients and meeting their financial planning goals.

It’s easy to see how a referral process can get sidelined by these other important activities. Making referrals part of everyday conversations with clients is one of the best ways to make sure your referral strategy goes from ad hoc to long term. Here are three simply ways to bring referrals up in your client meetings:

  • “We’re finding a lot of people are being referred to us about <insert topic e.g. changes to super rules>.
  • “We were discussing this issue last week with a client who was referred to us.”
  • “Like you, most of our clients are referred to us by other clients.”

These are just some of the ways to start making referrals a priority for your business and growth strategy. In our next article, you can explore the referral process in more detail and take steps to streamline and embed regular referral conversations and follow-up for your business.

To discover more about how to proactively foster quality client referrals listen to an on-demand webinar from our experts.

Having an Approved Product List (APL) may be valuable in today’s rigorous regulatory environment. We take a look at some of the key benefits of having an APL for registered financial advisers.
Magellan article: A reserve currency is widely held by governments and institutions among their foreign exchange reserves. A digital currency could be next.
Margin loans are a type of investment loan and have similar risks and benefits as other gearing strategies, however they also have some unique features.
Technical resource