'Tis the Season for Referrals

Christmas is only 5 days away. I know this without even thinking about it, because my kids have been asking me every single day for two weeks now how many days are left until Christmas! I can do the math in my sleep at this point. 

So I understand that right now, your mind may not be focused squarely on your business. But I want to remind you that the holiday season brings a special gift to financial advisors who know where to find it, and how to unwrap it. 

Right now, your clients are going to lots of holiday parties. They're seeing friends, and may be preparing to spend a good chunk of time with family. Many of them are thinking a lot about giving, and bonding, and what makes life worth living. 

Come January 2, all of this activity and thought will add up to a treasure trove of valuable information that you can unlock to generate more referrals.  As we've discussed in past articles here, one of the keys to a good referral strategy is putting on your detective hat and learning more about who your clients know.  As any good detective knows, asking the right questions can make all the difference. 

Here is your assignment for the remainder of the holidays, and for the month or so afterward. Turn that standard post-Christmas chit-chat with clients into a real priority. Ask every single client what they did for the holidays. And then, when your client tells you how lovely it was to see her new baby granddaughter enjoying her first Christmas, don't just say "that's nice" and then turn the discussion to how you want to change her asset allocation in 2008.  Ask more questions. Dig deeper. Recognize the information for what it is: an opportunity. Make a note of the information you hear so you can follow up on it later.

Ask where your clients spent the holidays.  "Did you host family?" "Did you go to any interesting parties?" "Oh, you vacationed with friends in Arizona?  Who are the friends, and where did you stay, and how do you know these folks?"  "What was the most interesting gift you received?" 

What you hear won't always be positive. The holidays can be a difficult time, people's lives aren't always going smoothly, and of course, friction can arise during those heartwarming holiday visits. If a client reveals this type of information, don't brush it under the rug or try to change the subject. Engage it. "Oh, your sister's husband just left her?  That must have been very difficult at the holidays. How are she and your niece and nephew handling it?"

You will be amazed what you didn't know, and what you'll learn, about your clients and their connections. Some of those connections may end up becoming clients, when you learn to ask more questions about them, uncover their needs, and ask for introductions.  Make sure to document every scrap of information, so you can follow up on it later. 

Oh, and there's no need to wait until after the holidays to put on that detective hat.  Any conversation you have with a client between now and year-end should include some good questions (and at least two or three follow-up questions) about their plans.  Even if they don't celebrate Christmas, you can still ask about what they'll be doing for New Year's, or whether they will be taking advantage of the season to get some vacation time in with family and friends.  For example, I asked a colleague recently what she was doing for the holidays, and she told me that her grandmother has recently been diagnosed with Parkinson's disease, and is coming to terms with the fact that it's getting to be too difficult to care for her home and her husband. This all came out in a very simple exchange (I asked one question and one follow-up question ). 

Hopefully, as an advisor, you already see the opportunity that would be opened up for you if you had this conversation with a client—especially if you just happen to have experience working with elderly clients facing similar situations.

While you're processing these suggestions, keep in mind also that the holidays are a great time to re-connect with the idea of referrals as "client-centered."  Focus on referrals as a way to give to your clients, not take from them... and you'll find that it gets much easier to ask for those introductions.

Good luck, and Happy Holidays from all of us at Horsesmouth!

Five Great Times to Ask for Referrals

One of the referral questions we hear most often from advisors is, "When should I bring up the subject?" Referral expert Matt Anderson tackled this topic in a recent Horsesmouth article, suggesting these five excellent times to talk about referrals:

1. During a formal client meeting, after you've confirmed the value that you've brought to the client thus far.

2. Just after the meeting. For instance, you can casually ask while you're walking to the door of the office or to your cars. Matt says he likes this time because the other person is more relaxed. You're most likely talking about something informal, such as what the client is doing over the weekend. Then you can pivot back to business by asking, "Oh by the way, when we were talking earlier, you mentioned"... and now you get specific:

• Speaking at a company event
• That your parents live nearby
• That you thought your business partner might benefit from doing the kind of work we've been doing

Then ask:

• What would be a good way to organize that?
• Would you mind seeing if they'd be open to a quick conversation with me?
• Do you think the three of us should have lunch sometime?

3. On the phone as you inquire about some value you added to the client. Give first, Matt explains... then receive. Send the other person some referrals or sales ideas.  Tell them about an event that might interest them (or even invite them to go along with you, if you have a membership or exclusive access).  Create an "emotional bank account," Matt explains, and get a decent account built up. Then you can start making some withdrawals in the form of referral requests.

4. While having lunch, coffee, or a beer—again, once you have provided value. 

5. When your gut tells you. Listen to your gut, urges Matt. Sometimes you just know you've established a good rapport and can ask for what you want. This sense usually develops with experience.

For the complete picture, read Matt's Anderson's article, The Best Time to Ask for Referrals, in its entirety (free registration required).