In the 20 years or so that I’ve been working with financial advisers, one of the things I’ve found that really makes an advice business valuable is its ongoing level of client referrals. For that to occur, your clients and partners need to be satisfied with what you’re offering.
We’ve just finished working with Business Health, which completed some client surveys on behalf of our advisers and the results have been fantastic, with client satisfaction scores well above the industry average in every area.
Despite the substantial change occurring around us and while every advice business may be different, the fundamentals that drive success for a business don’t change much. Here are some of the strategies that I use within our high-support licensee model that have been proven to increase client satisfaction levels, making your business more referable and therefore more valuable:
- You need to get your value proposition right. It might be a bit of a cliché but having your 20-second elevator pitch that speaks to your ideal client is vital, as everything you do within your business hinges on that.
Being able to clearly articulate your client value proposition will help you to identify the fundamental drivers of your business, what you really need to focus on and what influences profitability – all of which will give you a clear direction on what you need to do to become more referrable.
- You must be consistent. You can have the best value proposition and best tagline ever but they won’t mean a thing unless they flow right through to the client experience, your operational processes, your service standards and the way you and your support team engage with your clients over time.
Actively managing your client’s expectations, following up every meaningful contact in writing and proactively updating them on progress are just a few of the things within your control that make a huge difference to client satisfaction, and therefore referrals.
Having a point of difference is also important. Think about what that is for your business.
- You must have a client acquisition strategy. I’m a huge believer in having a process in place that forces an advice business to actively seek referrals. Many advisers seem very unsure about asking clients for referrals, perhaps due to a lack of confidence or the fact that, in the past, new clients were not that difficult to come by.
Having a structured process to seek referrals is really important. A client survey can be a great way to start the conversation with your clients about what they think of you. Another tactic is to create a referral network with like-minded accountants or lawyers.
It’s simply not enough to just do a brilliant job and hope that referrals will come – you need to make them happen, otherwise you’re leaving money on the table.
- Try and find a profitable niche. Targeting a specific group of ideal clients can help with referrals, as they naturally group themselves together. Some examples of niches could be specific segments within the medical or legal profession (such as property lawyers), or Toyota dealership owners in Queensland, or winemakers from the Hunter Valley.
Focusing on specific groups like these means you’ll get a really deep understanding of their common goals and interests, and will allow you to introduce your business to clusters of clients that you’re able to service profitably. Doing your own research into niches like these will position you as an expert or thought leader in that group, and therefore help you to receive introductions into these markets.
Matthew Brown is General Manager for Financial Services Partners and works closely with its network of advisers to help them create sustainable, referrable businesses over the long term.
