Articles

It’s Difficult to Ask for Referrals

It’s widely accepted that the best leads are referral leads but I’ve heard many reasons why the referral rate within a business is not as high as it could be:

• I cannot easily identify who to ask
• Clients do not want to give referrals
• It’s awkward to ask
• It feels like begging for business

You will only get a referral if somebody likes you and/or you have done a great job for them.  It’s perfectly understandable that people find it awkward to ask for referrals, particularly face to face.   Some may see it as begging for business or premature if the client hasn’t had a chance to dwell on the experience and let the benefits of the service sink in. We find it much easier to stick to more traditional marketing methods like advertising or direct mailing. The paradox here is that traditional marketing activity involves more cost and is less effective.  As marketing guru Seth Godin says “You don't need to call a meeting to try something new, because the convenient option has already been approved. The problem is that convenient approaches rarely break through or generate extraordinary returns”. And he’s right; if your business is not receiving enough referrals, try something new.

Identify what people think of you.  Ask them for feedback. Asking for client feedback in a timely, relevant and appropriate manner can identify extremely strong referral opportunities, and the best time to ask is shortly after the client has experienced great service from you. The client is already focused on telling you how good your service was and so they are predisposed to give a referral.

Similarly uncovering below par service or unfair outcomes through client feedback allows firms to turn a client around and address issues before they turn into a formal complaint.  It is these clients that become your biggest advocates; they will refer you to others for the very reason that you listened to and acted upon their feedback. 

Many advisory firms target high net worth clients as their ideal and most profitable segments.  This is likely to include business owners or those with a high level of commercial awareness.  This segment is one which understands the importance of referrals the most and the chances are they all seek referrals for their own businesses.  Once you have identified those clients who are inclined to provide referrals you can focus on getting the right type of referral.  Does your client know anyone with similar issues to themselves which you can help address?  By doing this you are not asking them to take a risk but to make a factual observation.  People do want to give referrals; they like to be viewed as an authority or helpful influencer, so make the most of the opportunity and get referrals that fit your target market.

Do I practice what I preach?  TCF Centre has been in the marketplace for less than a year.  Over 80% of our current clients have found out about us not through advertising but through referrals. Over 200 IFAs use our client feedback solution to generate their own referrals, testimonials and validate their service proposition. Third parties like Simply Biz, refer us to their members, officially advocating the use of TCF Centre as an effective means to evidence TCF performance.

I have learned to ask for referrals, something I never did in previous roles – perhaps because I thought I never needed to.  More importantly I have learned how powerful referrals can be in growing a business. So don’t be afraid to ask and you will generate extraordinary returns. Oh and if anyone reading this is already using TCF Centre and you like what we do….please tell others about us! 

If you are not already registered, please do so at the following address and you can be up and running in minutes: https://www.tcfcentre.com/Register.aspx

The FinQS Team

Phone: 01564 711153 
E-Mail: support@tcfcentre.com

Website: www.FinQS.co.uk

FinQS is a trading name for Financial Quality Solutions Limited (company number 6446848).

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Author: Philip Calvert
Posted: Wednesday, November 18, 2009 | 3:27:44 PM