The ABCs of Automatic Referrals: F is for Follow-Up

When the referrals and introductions start flowing, it feels great—like being on top of the world.  But that superhero feeling won’t last if you don’t know what to do with all of those leads.  It doesn't do any good to get referrals if you aren't organized enough to execute on them.   

We've got some extra work to do when we get a referral. In exchange for that nice fuzzy lead, we have to take care of not one, but two people: the referred prospect and the referral source. Fail to follow up properly with the prospect and the entire exercise has been for naught—plus you run a significant risk of damaging your relationship with the referral source. Fail to acknowledge and thank clients for referrals and you not only put those potentially important relationships at risk—you also lower the chances that you'll get additional referrals from those clients in the future. 

The more referrals you're processing, the more you need an automated follow-up process.  Why? Just look at this list of steps that are necessary just for converting a prospect into a client (from Barry Mendelson's article "Break Down Your Business Into 4 Practice Systems for Faster Growth" [free registration required]):

1. Data Collection
   • Prospect/advisor interview(s)
   • Prospect/advisor follow-up call(s)
   • Prospect profiling
   • Document retrieval/checklist
   • Schedule report or findings meeting
2. Information Processing & Case Analysis
   • Investment guidelines
   • Asset allocation decision
   • Estate & tax considerations
   • Work plan development
   • Phone call reminder
3. Report of Findings
   • Document preparation
   • Meeting agenda
   • Findings and proposal presentation
   • Close
4. Implementation
   • Contract preparation
   • New account forms completed
   • Client notebook delivered
   • Quarterly portfolio reviews scheduled

And that's not even considering the steps you need to take to get to that first meeting with a referral prospect... and the additional and parallel follow-up steps that you need to take with the referral source.   Did your client offer you an introduction, but you still need to put your heads together and find a good day for you to treat him and the referral to a round of golf? Did you send a handwritten thank-you note for the introduction?  Does your client expect you to keep him apprised of how things are progressing with the referral?  Did you send him a thank-you gift when the introduction ultimately turned into a new account? 

So, whether you're a solo practitioner or have a team of six, whether you choose to track follow-up on paper worksheets (like the follow-up checklist in Automatic Referrals) or using customized contact management software (free registration required), make sure to include an efficient follow-up system in your referral strategy.