Posts Tagged ‘Pretext’
Wednesday, July 13th, 2011
Last Friday, advisor coach Stephen Wershing was interviewed by executive coach Bruce Peters.
He discussed the how to build a referral marketing program, and the importance and immense value of client feedback.
Listen to the podcasts (click the red play buttons):
In the first segment Stephen Wershing discusses his work with AdvisorImpact’s Julie Littlechild, who conducted a survey of thousands of clients of advisors about their feelings concerning working with a financial advisor. Here are a few of the findings of that research:
- Its important to have conversations with clients that go beyond the scope of their portfolio
- Those who had conversations about financial planning, as opposed to just investment planning were much more satisfied.
- Clients who were asked for feedback generally felt more important and felt more satisfaction because they played a role in the advisor making changes to the practice, and they felt more engaged, a significantly more dramatic driver of satisfaction.
- Those were the people far more likely to refer new clients.
- Just asking for feedback, and then doing something about it, it makes them more committed to you, and then implementing it, that was a significant factor in how engaged they felt. It enhances the client’s perspective on the value they received from your professional service.
- increases referral traffic dramatically — making a client a part of your ‘advisory team’ creates an exciting pretext for conversation with their associates and friends about how they were engaged
- Stephen provides more detail about this in the interview.
- In the second segment, Stephen discusses the anatomy of the referral, and the idea that there are many ways to attract referrals, and that asking for them is the least effective way.
- When we refer, its a way for us to network, we do it for social currency, its a way for us to expand our influence, but the bottom line is that we do it for OUR reasons, we don’t do it for their (the advisor’s reason).
- When we are confronted by a friend’s challenge, our instinct is to help them by referring, or if we are asked “Who do you use?” we want to be in a position to use that to benefit ourselves by sharing our benefits with our friend.
- When we are asked by someone to sell the risk, as opposed to offering the benefit, we become less willing, because the risk is ours - for example, if you send a friend to your mechanic, and the mechanic screws up, you risk being screwed up by that too.
- If as an advisor, all you do is ask for referrals, what you are doing is forcing the client to ‘sell’ all the risk by putting the onus on them to perform a task which risks diminishing their perception of you, and it puts a focus for them on the risk of sending their associates to you.
- On the other hand, if you give the client the benefit of the experience of being engaged in the process, by asking them for their advice, and then working to visibly or verifiably implement their suggestions for improvements to the way you do things, and you thank them and credit them for it, both privately and in the presence of your client advisory board, its their own sense of engagement that compels them to want to speak freely about their success with you as their advisor. Their enthusiasm about their experience with you fuels the drive to expand their influence by referring you.
- The discussion continues in more detail during the interview.
Tags: 1 Segment, 2 Segment, Advisory Team, Anatomy, Bottom Line, Client Feedback, Conversations With Clients, Executive Coach, Financial Planning, Immense Value, Investment Planning, Julie Littlechild, Last Friday, Marketing Program, Pretext, Professional Service, Referral Marketing, Referral Program, Referral Traffic, Referrals, Service Increases
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