Making the Switch to Target Marketing

Newly independent advisor Tom H. of San Luis Obispo, CA wanted to jumpstart his new business by concentrating on referrals and using target marketing to channel his message. "It has occurred to me that I don't have a defined target market," he wrote. "Yes, I have a book of business, and it includes many retired individuals as well as young business owners and random individuals."

But Tom had doubts about the approach, specifically a fear about alienating prospects with a specialized marketing message that didn't fit them: "At the risk of not maintaining a target market, I don't want to leave out possible clients.  Is this a sound approach?"

He addressed his concern to Bob David, Horsesmouth Director of Advisor programs and leader of the Automatic Referrals Jumpstart Program. Here was Bob's response:

"I understand how it can be a bit overwhelming to try to tackle too many things at once, especially after going independent. Having grown up in a small University town myself, I know there are some unique challenges. Here are a few thoughts:

• Keep in mind that having a target market does not mean abandoning the clients you have that have been loyal to you as you've changed firms. This would be a de-motivator for you for obvious reasons. It just means that when it comes to your pro-active efforts, you will begin focusing on the needs of your "ideal client" or "target market."
• It is very important to identify your "ideal client." It can be tough, but keep drilling down. Remember that success leaves clues, so start with a hard look at those retirees and inheritors. What do they have in common? What did they do before they retired? Are they affiliated with the University? Or the government? What is the demographic profile—are they men or women? What age? What are their affiliations, passions, hobbies, etc..?
• Consider going one step further and doing a "SWOT" analysis: S—What are your relative Strengths in your market? W—What are your relative Weaknesses? O—What are the Opportunities perhaps overlooked by your competition? T—What are the Threats to your practice? (Could be aging clients, lack of a consistent advisory process, service quality, etc...)
• Consider derivatives of the more obvious categories and maybe move beyond your borders. For example, "Family Owned Funeral Home Operators" throughout CA or retired college professors or retired football coaches, etc...

At first, target marketing can seem daunting, but if you do some digging like Bob suggests, in the end it's a rather natural extension.

For more on target marketing and SWOT analysis, see these Horsesmouth (free registration required) articles:

How to Pick a Lucrative Niche

Many advisors think that by keeping their options open to all potential business they won't miss an opportunity. But the opposite is true. A focused, rich niche can be far more effective. Here's how to develop a niche over the course of the year.

6 Rules to Guide Your SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities, and threats. In order for your marketing plan to work, you must honestly assess your practice in these four areas. If not, you risk failing in your efforts to grow your business.

Only Fools Rush Into Referral Accounts

Having a referral throw a new account into your lap is hardly ever a bad thing, but jumping into a new relationship helter-skelter can lead to unnecessary problems. Plus, you could miss valuable opportunities for additional referrals.

Jim W., a Canadian advisor, wanted advice on how to handle such a spontaneous, new account. A woman who had been referred to him moved over $250,000 to him, citing the fact that he came “highly recommended” as her reason, and left without so much as bringing up the topic of investments. Additionally, she mentioned that her husband might want to bring his assets over, too, but that he would need convincing.

Wanting to leverage this new client and potential advocate, Jim asked Bob David, Horsesmouth Director of Advisor Programs, “How do I approach the husband and also ask for other referrals from her right away?”

The first thing Jim should be doing, Bob suggests, is to do some digging into what exactly brought the referral into his office. “It’s vital here to get a much better understanding as to why you came so highly recommended in the first place and by whom,” says Bob. “This gives the context which in turn allows you to get client-centric, do some detective work, and create a network map that will lead to the right introductions.”

This understanding of the new client’s motivations is vital, as knowing the problems they came to you to solve will let you offer to help any of their friends in similar situations. In Jim’s case, that includes the husband as well as other potential referrals.

Bob additionally cautioned Jim to slow things down with his new client. When things get rushed, the chance of miscommunication increases and mistakes can be made to tarnish the new relationship. Bob recommends saying something akin to the following:

"I can appreciate the value of your time and that you are in a hurry—my time is valuable also. But you've worked hard to accumulate this money, and I want to do make certain we do what's best. I find it’s mutually beneficial when we take the time in the beginning to be thorough in our planning, so what I suggest is setting a time to come in and do this right....does that sound like a reasonable approach?"

Part of the beauty of referrals is that prospects come to you already confident of your abilities and in most cases pre-qualified. But just because a referred prospect is an easier client to take on, doesn’t mean you should race into the relationship. Doing so could damage the relationship and cut-off the possibility of gaining even more referrals.

Rid Your Clients of Common Referral Objections

Advisor Amy Berk from Denver, CO, was running into a wall with her referral efforts—actually, she was running into three: three objections she was getting from her clients when she asked them about referring.

They were:

1. "I don't talk to people about their money."
2. "I don't know anyone."
3. "I already gave you referrals."

"How do you handle those nasty objections?" Amy asked.

These objections and others like them can bring a referral conversation to a screeching halt. How do you not only address these objections, but do so in a way that makes the client genuinely want to give referrals? 

Bob David, Horsesmouth Director of Advisor Programs and leader of the Automatic Referrals Jumpstart Program, had this to say about overcoming the first of Amy's objections: "When someone says they don't talk to people about their money, it's most often because we haven't positioned the request in a client centered way, and it needs to be more focused on exactly what you can do to help the person you're asking to be introduced to." If a client sees that you can help a peer with a problem they've been struggling with, they won't have reservations about bringing your name up.

As far as addressing the "I don't know anyone" objection, Bob stresses the importance of specificity. "Clients need to understand who we can best help, why or what problems we can solve before they can go through their mental rolodex and get a picture of someone in their heads," he says. Your client probably knows plenty of people who would make for an ideal client, but they have no idea what criteria define one. It's your charge to make sure they know exactly what services you can provide so that they have a clearer picture of who could benefit from them.

When a client says, "I already gave you referrals," it's a definite sign, Bob points out, that the requests are coming at the wrong time. You need to make sure that you haven’t been over-zealous in your referral requests.

The one mistake you can make with these objections, or any objection for that matter, is to let them stop you. Any concern a client may have can be addressed and overcome.

Bridging the All-Important Referral / Client Gap

Getting referred to is a big step toward gaining a client, but the business relationship is far from cemented at this point. You've been introduced to the referral, but things can still be awkward between you. After all, you haven't worked together and probably don't know much about one another. Sometimes it can be tough to bridge the gap and make the transition between the referral and the first appointment.

Brian V., an advisor in Arcadia, CA, asked Bob David, Horsesmouth Director of Advisor Programs and creator of the Automatic Referrals Jumpstart Program, how to turn that new referral into a new client. "A lot of times I am introduced to referrals and these referrals understand what business I am in," Brian wrote. "However, the topic of their investment needs never seems to come up in our conversations no matter how many hints I drop. Once you get introduced to a referral, what is the best way to approach the referral and ask for an appointment or to take your relationship to the next level?"

To transition the nascent relationship into a business one, you need to focus on the referral's perspective, or what Bob David calls the "client centered mindset." "Focus all your attention on learning about them and being interested in their situation, their business, their hobbies, etc. Then look for an opening," says Bob.

Once you discover more about them, you can explain how you've helped those in similar situations. You may think the natural thing to talk about is investments, but as Bob points out, that's not really the case. "We tend to think the opening is always about investments," he says, "But from the client's perspective, it's more important to identify a problem that needs to be solved. For example, if you're talking to someone who owns a business, you might ask how they got started, the nature of the business, how they would describe their best customers, etc...then mention you've been able to help other business owners and ask how they feel about their current retirement plan, cash management, succession plans, etc."

It really comes down to getting into the referral's head and learning their unique perspective. Once you do that, you're in a position to address their true needs and the business side of the relationship will naturally develop.

Client Referrals: Megaphone or Muffler?

Just read a referral post on the blog of Kirsty Dunphey, an Australian entrepreneur and self-made millionaire, that really resonated.

Kirsty was referred to a particular store by two different friends. When she mentioned to the proprietors that she had been referred, they showed no interest in learning who these loyal customers were who had recommended the store to their friend. 

As Kirsty points out, had they asked and gotten this information, the owners could have sent a thank-you note to these raving fans, or called and thanked them, or even sent them a discount voucher for their next visit to the store.

"When someone refers a friend to your business," Kirsty explains, "you’ve just got yourself a walking, talking billboard going around advertising your business! What you do to thank them for doing your marketing for you can act as a megaphone or a muffler. Which would you prefer?"

Do you religiously follow up with every referral source and say thanks?  Do you send thank-you notes? Gifts?  If not, don't wait! Start now. Reward those raving fans for trumpeting you to everyone they know, and they'll trumpet even louder.

The 7 Deadly Sins That Destroy Referral Business

Are you sabotaging your own success? Horsesmouth contributor Matt Anderson, president of the Referral Authority, recently shared his list of the top seven worst mistakes advisors make around referrals.  See if any of these sound familiar.

1. Don't know who is giving them referrals. Many advisors don't know where their referral business comes from or why their top referral sources like them so much.

2. Don't know when to ask for referrals. Many FAs ask at the wrong time.

3. Have an unhealthy mindset about asking for referrals. Many avisors develop a negative attitude about referrals, or even outright fear [free registration required].

4. Don't know what drives referral conversations. There are six steps to an effective referral conversation, but many advisors do not know them or consistently follow them.

5. No niche. For FAs, there are enormous advantages to concentrating on a focused demographic. Do you know the five qualities of a good target market?  (By the way, more referrals are just one reason for having a niche!)

6. No strategic referral relationships with other professionals. Advisors must deliberately build reciprocal referral partnerships with other professionals.

7. No system in place for keeping in touch with clients year-round. People think about themselves 95% of the time; they don't sit around brainstorming ways to refer more clients to their advisor.  If you want to get referrals, you've got to stay top of mind.

Are you making any of these mistakes?  Read the entire article, "The 7 Deadly Sins That Destroy Referral Business," (free registration required) and stop missing out on all of those referrals you could be getting!

The Art of the Referral Thank-You

When you get a referral, regardless of whether you end up with a new client or not, be sure to give your client a hearty and gracious thank-you, IMMEDIATELY. A hard copy, handwritten note is an absolute must.  E-mail and telephone thanks are NOT acceptable substitutes.

The written thank-you is a dying art—so it's very much to your benefit if you're one of the few advisors who knows how to do it properly.

For the best effect, don't use your firm's letterhead.  Instead, get yourself some high-quality stationery engraved simply with your name, and enclose your business card with the note.  Crane's is one of the best sources of this type of stationery.

A thank-you note need not be long or elaborate.  A few thoughtful lines will do.  A pretty standard format is three to five lines in length.  Start off with an expression of gratitude for the referral. Then provide a bit of detail to personalize your thanks.  Mention any plans you may have to be in touch in the near future. Say thank you again, and close. It's as simple as that.

Here is a sample note thanking a client for a referral. This is provided simply to give you an idea of how the wording might go. Your own notes should be true to your own personal style and voice.

Dear Paul and Michelle,

Many thanks for introducing me to Roger and Pamela Johnson last Saturday.  I sat down with the Johnsons this morning, which only reinforced what lovely people they are (I would expect nothing less from friends of yours!) with whom it will be a great pleasure to work.

Thank you again for your kind introduction. It is clients like you that make my job such a joy.

Warmly,
John

And here is a sample note of thanks to another professional who has referred a client to you. Notice that it includes the other professional in the process by offering to share the completed financial plan... this is appropriate if the referral came from a relevant professional, such as a CPA or estate attorney.

Dear Don,

I so appreciate the confidence you have in me, and the many referrals you have sent my way. I met with the Martins this morning, and I know they are going to be fun clients. 

I will give you a call as soon as I complete their financial plan and we can review it over lunch—my treat.

Thanks again for all your support!      
      
Best regards,
Julie

Don't underestimate the power of a handwritten thank-you note.  Send them regularly and you'll set yourself apart from your competition and impress 100% of your clients and connections. 

The ABCs of Automatic Referrals: Network Mapping and the Six Degrees of Separation

Everyone has heard of the concept of Six Degrees of Separation—the idea that through our networks of acquaintances, none of us is more than 6 steps removed from everyone else on the planet.  I  saw a great TV documentary a couple of years ago called "The Human Chain" that set out to prove (or disprove) that theory. 

The producers asked two very well-to-do people in New York City to try to locate a man neither of them knew, using only social contacts.  The only thing they were given was his name and photograph and the information that he lived in Brooklyn—which every New Yorker knows can be very far removed from the Upper East and Upper West sides of Manhattan, where the subjects lived—and that he was a boxer at a particular gym. They were not allowed to Google him or use any other means of research to find him. The only way they were allowed to seek him out was through their existing social networks—by asking people they knew who they thought might be able to lead them in the right direction.

As it turned out, both subjects managed to get introduced to this young man within two days.  One turned out to be four degrees removed from their target—the other, five. 

Then, the producers asked the young man to do the same thing in reverse: find a way to use his existing network to get introduced to a Broadway dancer who was starring in "A Chorus Line."  He never thought he would be able to do it—but as it turned out, he was also able to accomplish the task within 4 social hops. 

It was a fascinating show. One of the biggest take-homes for me is that you simply can't make assumptions about who people know.  Advisors frequently make the mistake of assuming that only wealthy clients can introduce them to other wealthy people.  That is a fallacy.  In fact, Horsesmouth has found that advisors' best referrals often come from their "C" clients.  We all know a LOT of people.  If I challenged you right now to find a connection through your existing network to a prominent or high-profile person in your community, I will almost guarantee that you could think of a pathway to get you there within just a few leaps.

But the only way you will ever uncover these connections is by "mapping the network" of your clients and other referral sources.  A network map lets you visualize who your client knows, so you can plan your next move.  If you know who your clients know, you can both uncover great new referral possibilities AND find connections through your clients to people you already know you want to meet. 

You know the old saying that you can't map a route if you don't know your destination?  Likewise, you can't get a steady stream of high-quality referrals if you don't understand who you want to meet, why you want to meet them, and who you know who might be able to introduce you to those types of prospects.

This is the heart of the Automatic Referrals process: gathering information about who your clients know, identifying potential prospects within those networks, and then asking for introductions to those people. Do your homework. Take your time. Find out who your clients know.  Then you can identify the acquaintances you want to meet—and ask your clients to introduce you.

Touch Referral Sources with a "Thinking About You" Call

One of my favorite prospecting experts, Art Sobczak of Business By Phone, recently gave some terrific advice for anyone trying to cultivate referral sources: "Call people and tell them you are thinking about them."

Simple, right?  Well, yes—and no.  As Art points out, people love to hear they're on your mind, but you can't just call or show up on their doorstep with no good reason to take up their time. He asks if you've ever been guilty of these very poor methods of staying connected:

The Probation Officer Approach: "Just checking in with you..."

The Baseball Opening: "Just wanted to touch base with you..."

The I've Got Too Much Time on My Hands Call: "Thought I'd give you a call to see how it's going..."

Ugh.

The point is, if you're not adding value, you're wasing their time, and yours. 

What you want to do, Art writes, is:

"...call with some news, an idea, something you heard or saw that could benefit them, a sale or promotion they could take advantage of...anything that would cause them to say, 'Oh, that's interesting stuff.'

For example,

'Hi Jim, it’s Pat at Universal Services. I was reading some new performance reports, and I started thinking about you. I realized that you might be interested in what these reports had to say, because of what you mentioned on our last call about...'"

When you read a newspaper or a magazine or a blog, be on the lookout for items that might be of interest to the potential referral sources in your network.  Share snippets of conversation or things you learn from clients and prospects that you think might be valuable to them. 

Better yet, offer the other guy some referrals first: "When Mrs. Jones mentioned this problem with her father's estate, I immediately thought of you and your expertise with this type of situation." 

Find value-added ways to let people know you're thinking of them, touch them regularly, and be patient—and watch the referrals start to flow.

Read Art's complete post, "I'm Thinking about YOU," here.

Getting Referrals in An Ugly Market

In a market like this, just heading into the office every morning can feel like climbing Mt. McKinley, so the thought of asking for referrals might seem utterly insane. But veteran advisors will tell you that, in a tough market, opportunities abound for those with the patience to seek them out.  I know advisors who have doubled or even tripled their business during bear markets. 

How do they do it?  First and foremost, they focus on maintaining and strengthening their existing relationships.  In a market like this, you need to treat every client relationship like gold—and protect it like Fort Knox.

If you have one priority right now, it needs to be proactively getting in front of your clients. Call them, e-mail them, send them letters, talk to them in as many ways as possible.

Can it be tough to make those calls when performance is lacking?  Sure. When the market is whipsawing everyone around, it's only natural to get into a siege mentality. Whether you've been in the business for five months or 25 years, the last thing you want to do is to pick up the phone and deal with a whining client. But you have to bite the bullet.

The best way to guard against the ostrich syndrome is to build client calls into your daily action plan—and, ideally, into your business plan (free registration required). If you have something on paper that says you will call your clients every month, you'll do it. Yes, it's true that clients may not be thrilled with their results—but they will be a lot happier than if you didn't call at all. 

Some advisors even take their show on the road in markets like this. I once interviewed an advisor who logged almost 25,000 miles on his car during the last big bear market. He even visited out-of-state clients while on vacation. His family wasn't too happy with him, but he kept those client relationships intact.

What you need to understand is that right now, most of your competition is hiding.  If one theme resonates among successful veteran advisors, it is the tremendous business-building opportunity that exists in difficult markets. There's a ton of business to be won from the walking wounded among your competition. Clients start looking to "change doctors" when things get scary.  And they talk to their friends and family about their fears and concerns.

So be sure to build measurable referral targets into your business plan this year.  Keep your ears open for referral clues. And don't let external events distract you from your plan. To quote business coach and Horsesmouth contributor Joe Lukacs (who has a great weekly business development audiocast, by the way): "It's so easy to sit back and say, 'It's bad; the market's bad.' You absolve yourself of responsibility for your success, you become a victim, and you get a big pity party going. The people who are succeeding refuse to be victimized. They take total responsibility for their world."

Check out these articles on dealing with an uncertain market (free registration required):

10 Rules for Reassuring Clients in Volatile Markets
When markets are volatile, we're more stressed and so are our clients. That's when it's more important than ever to articulate our recommendations and provide reassurance of a positive outcome. Here are 10 rules of effective language.

Calm Edgy Investors by Renewing Their Goals
Market gyrations make for squirmy clients.  Mellow them with some sage guidance.

Cultivate Opportunities in Trying Times
When the going gets tough, the public should be more aware of your services than ever. Here are some ideas on communicating the value of your services during the best and worst of times.

Maximum Referrals - The Blog

Our good friend and Horsesmouth contributor Daryl Logullo has launched a new referral blog. Check it out.

Daryl has also contributed a number of great posts to Automatic Referrals:

How to Stop Getting Poor Referrals From Attorneys and CPAs

Competing with Other FAs for CPA Referrals--How to Be First Among Equals

My CPA Won't Refer and Now His Son Is My Competition

'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).

Keep a Referral Scorecard

Ivan Misner, president of worldwide networking organization BNI, published a great idea in a recent article on Entrepreneur.com (I saw it here, on MSNBC).  While it may be complicated to track results and ROI for most marketing strategies, he explains, it's actually quite easy to track your referral results.  How?  With a scorecard.

On this card, Misner suggests, record each referral. From whom did you get it, and how?  Was it unsolicited, or did you ask? If so, how?  How did you follow up on the referral? How did you follow up with your referral source?  Also track how you made referral requests that fail to yield new prospects.

When you keep track of all of these data points, Misner points out, you can then look back at what you did and analyze how successful you were and why. You can determine whether or not you're getting repeat referrals from specific clients.

It's the little things that make all the difference.  Did you forget to send a thank-you note?  Did you word your referral request just a little bit differently this time?  Pay attention to these small details, track the path and outcome of each referral you request and receive, and you'll be in a great position to tweak your referral strategy and improve your results.

Boost Referrals with Holiday Gifts for Clients

It's that time of year again.  Client satisfaction is the keystone in the foundation of any successful referral strategy and, for many advisors, holiday gifts are an important way to show clients you're thinking about them and build loyalty. 

Horsesmouth's senior editor and client service specialist Ed Klink recently solicited a treasure-trove of creative gift-giving ideas from his advisor "Brain Trust."  Here are some broad categories to consider. 

• Give a book. Inspire the best in your clients by giving an inspiring book. Inscribed with a handwritten note, a book is always a welcome gift.
• Give a treat. Let's face it, you can't beat tasty treats to get you through the long winter months.
  Give something with a "Street" theme. Silver bull and bear wine stoppers from Neiman Marcus. Or for $35 there's the bull and bear tic-tac-toe set.
• Give a charitable donation. This option has been growing in popularity over the years. By the way, this is a neat opportunity to do some referrals detective work and learn more about what your clients care about.  Explain that for the holidays this year, you would like to make a donation in their name to their favorite charity... and ask them to tell you what it is.  But don't leave it there.  Ask them some questions after they name the charity.  How did they get interested in this organization?  What's it all about?  Are they involved beyond being a donor?  You'll be amazed what you'll learn, not only about your client, but about others they know in connection with the charity.
• Give local specialties. One great strategy for holiday giving is to make a point of supporting a business in your town. You can order gift baskets at your local gourmet shop or pick up a few cases of specialty hot sauce from your city's mom-and-pop purveyor. Whatever you choose, a substantial order can be a big boon for a local business owner—and start your relationship off with a solid bond.
• Give wine and related gifts. Some wine sites allow you to add personalized notes—or even your firm's logo—to the labels of the bottles you select.

For details on all of these ideas, check out Ed's article, "Holiday Gift Strategies for Clients," in its entirety (free registration required).  And find even more ideas here:

More Advisor-Approved Holiday Gifts for Clients
Advisors across the country sent in these tried and proven ideas on how to share the holiday cheer with your clients.

Holiday Gifts for Clients: Where to Buy the Best
Don't get caught like a reindeer in the headlights when it comes to shopping for client gifts this holiday season. These innovative ideas will not only please your clients, they just might generate some prospects as well!

Client Gifts: 12 Ways FAs Spread Holiday Cheer
Looking to put smiles on your clients' faces this holiday season?  Here's a sleigh full of creative gift-giving suggestions from advisors who take the opportunity to stand out—without breaking the bank.

Bill Cates with "Nine Tips for Visiting Clients"

Today, we're featuring a guest post from Bill Cates of Referral Coach International. Bill works with financial professionals who want to build their practices by fully mastering the referral process and tapping into the lifetime value of their clients. 

Bill featured this article in his terrific "Referral Minute" e-newsletter.  I liked it so much, I asked his permission to share it with you... and he very generously agreed.  It seems that after Bill ran a piece about 7 simple ways to make in-office visits special for prospects and clients, many of his subscribers wrote to tell him that they couldn't really apply those ideas because they typically leave their offices to visit clients on their own turf. 

So Bill came up with the following list of ways to make those types of visits more special—which he notes is more challenging because you don't have any control over your environment. He also points out that several of these ideas were inspired by his readers.

1. Bring a staff member with you. As you already know, when people connect in person, their phone conversations are usually more cordial and more productive. If you talk about your "team" or "your support back at the office" give your clients a chance to meet them from time to time.

2. Pay attention. What I mean by this is pay attention to what's happening in their personal lives—health issues, children, parents, etc. Make a note to yourself. The next time you visit with them (or talk to them on the phone) ask them about this. "How is your mother doing after her operation?"

3. Bring them a treat to eat. You don't have to have clients come to your office to bring them a treat. I know one advisor whose wife bakes cakes for his clients. While you don't have to put your spouse to work for you, you can stop at a bakery and bring a treat. If they have a sweet tooth, bring something sweet. Maybe you know they like premium coffee. Bring them a bag of premium grounds. Our printing salesperson used to bring us fresh baked cookies. We always welcomed him.

4. Bring them a little gift. I remember early in my relationship with my current advisor, he brought me a Lexus coffee mug. I still use it. Come to think of it, he hasn't brought me anything lately! If your client or prospect has a favorite sports team, bring a little trinket. It's not the expense that impresses them, it's the thoughtfulness. When you find yourself browsing in stores, keep an eye out for little things you can pick up for your clients.

5. Get to them through their children. If your clients have young children, bring a little trinket for them (always have enough and make them safe and age appropriate). Just another way to show you care.

6. Bribe their pets. Many people consider their pets to be a member of the family. Bring a treat for their pet (premium quality only) or a trinket (breed specific) for them.

7. Bring them lunch. Very busy clients will appreciate this one. Make it a really special lunch. Find a high-level deli or nice restaurant with carryout.

8. Make a reminder phone call. Clients always appreciate a confirmation phone call a day or two before the appointment. Sometimes it reminds them and sometimes it reassures them that you haven't forgotten about your meeting.

9. Bring a maid with you. I was talking about this article with my staff and my Marketing Director said, "Bring a maid and have them clean my house while we meet!" While I doubt you would do this, it was too funny - just had to share it. For that matter, bring your 16 year old son and have them wash their car. The possibilities are endless (and quite silly).

Just as I was finishing this issue, I received an email from Marquise White who had some good ideas regarding last week's theme of "wow" office visits—with a fun perspective. I thought I'd pass his message along to you. Thanks, Marquise.

"I loved the most recent list of 'office wows.' It really is about the little things. You'd be surprised how far these simple things go to making the client feel special: $7 water carafe and nice glasses (with some weight to them); a nice service tray; and some real (not paper) napkins. We need to pretend that our clients are our newest love interest and DATE them. Get to know them, like if we wanted to marry them (at least be with them for 10 or 20 years)."

Here are some other ideas (free registration required) for making yourself memorable with clients and prospects:

10 Tips for Distinctive Client Service
Distinctive client service separates you from everyone else who talks about professionalism but doesn't deliver on it. Take action with these 10 tips from a recognized, distinctive financial professional. 

Case Study: How an FA Doubled Revenues by Systematizing Client Service 
After letting client contact slide for years, this veteran made the commitment to more consistent communication—and in the process saw a huge surge in his take-home pay.

Set New Standards for Service, Part 1
Inspire loyalty by developing creative ways of providing top-quality service to your clients.

The ABCs of Automatic Referrals: M is for Mantra

You’ve most likely heard the tongue-in-cheek phrase, "It’s all about me." People use it as a joke, but typically, that’s how advisors think about referrals: in a self-centered way.

That may seem only natural. After all, the point is to get more clients and more assets, right?

Well, yes. But there’s a problem. Positioning referrals in terms of yourself and your business runs counter to basic marketing principles, which dictate that we must always put the client’s interests first.

There is a much more effective way to think about referrals: the client-centered way. This paradigm is all about bringing value to your client relationships, enhancing their lives and the lives of people they know. Not only will this approach motivate clients to provide you with more names and introductions, it will make you feel better about asking in the first place.

Make this your mantra: Referrals are about helping clients and the people they know.

Instead of asking clients to go out of their way to help you, let them know that you’re never too busy to help them, and by extension their family members, friends, and business associates. Instead of thinking of yourself as scrounging for new clients, realize that you are offering the benefits of your guidance and expertise to the people your clients care about the most.

There are three core beliefs at the heart of the referral mindset:

1. You provide value.
2. Your clients and colleagues recognize and appreciate your value.
3. Your expertise can help some of the people your clients know.

Close your eyes and feel the truth of these statements. You are helping people right now. They know others you could help. But the only way they’re going to know you can help is if you offer. And that's how you should be positioning your introduction and referral requests.

"Burn the Boats" to Achieve Referral Success

I recently saw a blog post by John Jantsch of Duct Tape Marketing that takes one minute to read, but can literally transform your business and even your life.

Here's the core of it (click here to read the rest):

Sometimes knowing and doing have a hard time intersecting. I learned years ago one of the best ways to get something done is to give myself no choice.

There is a fable that tells about a captain coming ashore to conquer a new land and finding his forces outnumbered 10-1. Seeing this a sergeant asked what they should do, to which the captain replied, "burn the boats."

For example, he says, if you want to do more public speaking, get yourself booked for a speech.  If you want to get in shape, enter an upcoming 10K.

So what are some referral-related "boats" you can burn?  Here are a few ideas:

• Schedule a referral event and start getting the invitations ready.
• Book an evening at an exclusive restaurant for a client advisory board meeting.  Then, you can actually set up the client advisory board (free registration required)!
• Make 5 lunch reservations for two over the next 30 days.  Now find top clients to fill those slots, and then figure out who they know so you can ask for introductions over lunch.
• Really want to challenge yourself?  Make those reservations for three. Now you need to ask the clients to invite the people you want to meet.
• Get up from your desk right now, walk into your branch manager's office, and tell him or her that you are going to commit to getting at least 2 referrals per month, starting this month. (Don't have a manager? Call a mentor or close friend whose opinion of you matters, and commit to that person.)
• Book a lovely vacation for yourself and your spouse for a year from now, with a nonrefundable deposit. This will be your reward for meeting your referral goals and increasing your production.  If you don't meet the goals, you're going to eat the deposit!

As Jantsch writes, it's funny how your priorities can change when you have no choice. Stop choosing NOT to get referrals. Instead, choose success—even if you have to force it on yourself.

An Attitude of Gratitude

Believe it or not, there is actually something more important in the followup process than converting referrals into clients. It’s making your referral sources feel glad that they sent some potential business your way.

If you’re a gardener, this analogy will resonate. In the grand scheme of things, it’s neither here nor there if one of your tomato plants doesn’t bear fruit one season—what’s really important is that you keep the soil healthy and fertile so it can produce more plants for you next year. And to do that,
you’ve got to feed it, pamper it, and protect it.

Here’s a surefire process for making sure your referral sources feel appreciated and well cared for. Upon getting a referral:

1. Thank the referral source. Sending a thank-you note (free registration required) is compulsory, even when a referral doesn’t pan out. Do it immediately upon receiving the referral, and handwrite it on nice stationery or a notecard. Promise to keep the source posted on your progress with the person he’s recommended, if you feel comfortable about doing so. Taking time to acknowledge a referral source’s help and express your gratitude is not only common courtesy, it also positions you well for getting more referrals down the road.
2. Act quickly to contact referrals. Whether you prefer lunch meetings, phone calls, e-mails, or regular mail, it is important to make contact with referrals right away, so that you demonstrate respect for your referral source’s willingness to share information with you.
3. Provide updates. Don’t assume that prospects will report back to referral sources that you’ve contacted them (although you should always treat prospects as though that were a certainty). It’s very helpful to keep referral sources—especially current clients—up to date with your progress on the referred lead, whether the news is good, bad, or neutral. When referral sources know you are actually acting on the leads they’ve already given you, they’ll be more likely to give you more.
4. Say thank you again. When you actually sign up a referral as a client, express your gratitude with a nice gift. Choose something appropriate that shows you know the referral source and his or her interests; the more personal, the better.

Studies show that these tokens of appreciation nearly double the rate of repeat referrals—and considering the lifetime value of a new client that you're able to sign up thanks to the generosity of your referral sources, it’s just the right thing to do.

The ABCs of Automatic Referrals: L is for Listen

  Have you ever noticed that the best conversationalists are the people who let YOU do all the talking?  You know these folks. They ask you question after question and seem genuine interested in the answers. They pay attention.

These are the people most of us most like to be with, because they make us feel special and important. Well, your clients are no different, except perhaps that they are paying you, and therefore deserve your full attention even more than someone you just met at a cocktail party.

Advisors who listen well are more likely to have happy, satisfied clients—and that's the first step on the road to more referrals.

It's also important to remember that listening is a mission-critical skill in the Automatic Referrals process.  Remember that detective work is a big part of that process.  Give people a chance to talk, ask some simple probing follow-up questions, and you'll be amazed what you'll learn that can help lead you to great prospective referrals.

Here are a few tips to help you fine-tune your listening skills:

• Clear your mind. We all have a multitude of thoughts going through our heads at any given time. However, it is important that clients be given the full attention they deserve. Mentally put everything else aside. For the time you are together, your conscious self belongs to your client or prospect.
• Make eye contact. Show the client you want the business and have nothing else on your mind or agenda.
• Signal that you are listening and watch your cues. Don't let on that you have more important things to do. Checking your watch or pager implies your time is more valuable than your client's. Use affirming non-verbal cues such as smiling, nodding and attentively leaning forward.
• Be comfortable with silence. People often make their most revealing comments when you allow a silence to persist for a few seconds longer than might initially seem comfortable. Let YOUR client's words be the ones to ring in your ears RATHER THAN your own.
• Don't interrupt. Pause for three seconds after your client finishes a thought before responding. People speak at different speeds. Some speak slowly and others may stutter. Allow them to finish what they have to say.

Check out these additional resources (free registration required) about how to become a better listener.

Do You Really Listen to Your Clients?
Or do you merely wait to talk? There's more to listening than not talking—and prospects and clients can tell the difference.

How to Get Prospects Really Talking
If you want to motivate prospects to act, you've got to know how to appeal to their emotions—and that means asking four important questions.

Shut Up! 8 Reasons to Keep Quiet With Your Clients
People will pour out an astonishing amount of useful information if you just give them a chance. Try this technique during your next client meeting.

Why Pruning Your Book Can Boost Referral Results

It may seem odd in a blog about referrals, but I'm going to spend a minute telling you why you should considering cutting people OUT of your book, and being choosier about who you accept as a client.

In his post "Grow Your Practice by Asking Clients to Leave" on The Non-Billable Hour blog, Matt Homann discusses a really interesting post on, of all things, a marketing blog for churches.  The gist is that in order to grow in a healthy way, churches not only need to be open to letting parishioners switch to a new church when they're not a good fit, they should actually be proactive about SUGGESTING that they leave.

Take a look and you'll see immediately how this applies to your business.  As Matt says, "Your practice is often far healthier if you stop serving clients you don't want  (and who are often unhappy with your service anyway)."  Not only does "pruning" your book free up more space for GOOD clients and lead to a happier, more fulfilling experience for you, it also leads to higher-quality referrals... because the clients you like are the ones most able to connect you with others just like them.  (This is especially true when you start to get into niche marketing.) 

Start examining your book and your client requirements today, and get on the road to greater efficiency, higher satisfaction for you and your clients, and more quality referrals. These resources can help (free registration required).

Pruning Your Book 101: Get Rid of Dead Wood
Got too many unproductive clients? This primer shows you how to reduce the size of your practice to release energy and increase your satisfaction.

Should You Throw Some Fish Back?
Being selective about the type of client you take on can be difficult, but critical to your continued success. Here's what FAs have to say about screening prospects in this week's advisor e-mailbox.

Give Your Book a Spring Cleaning
If you're a veteran advisor, find out what's lurking at the bottom of your client list. You may discover a gold mine or a junk heap—but at least you won't be in the dark.

How to Set an Account Minimum--And Stick to It
http://www.horsesmouth.com/linkpo/79321_18.htm
Don't wait until you have hundreds of small accounts to establish an asset minimum. Define your ideal client today, provide high-quality service, and achieve success on your own terms.

The ABCs of Automatic Referrals: K is for K.I.S.S. (Keep It Simple and Specific)

How many times have you asked for referrals and heard the reply, "I’m sorry, I can’t think of anyone off the top of my head?" I bet it’s a lot.

Advisors tend to assume that the reason for dismal results like these is that their referral sources are reluctant to provide names. While this may occasionally be true, the "I don’t know anyone" response is much more often the result of asking referral sources to work too hard.

Our brains are essentially databases that we scan when we need to retrieve information. When you ask a client for a referral, she has to scan her entire "database" of acquaintances (which numbers in the hundreds, at least) and then narrow down the possibilities to come up with one or two names, all in a matter of minutes. Chances are she’s going to draw a blank. 

That's why, when you ask for a referral, you have to give clients some simple and specific details to help them define and target their "search."

Let’s say one of your fellow members of the Chamber of Commerce, Mr. Jones, owns a busy café on your town’s main drag and is an active member of the state restaurant association. And restaurant equipment suppliers just happen to be one of your target markets. If you ask Mr. Jones the generic question, "Can you think of anyone else who could benefit from my services?" it probably won't even occur to him to look in the "suppliers" section of his mental database. But how about if you get very specific? What if you were to say, "I have a number of clients who own equipment supply firms, and I've done a lot of work helping them with setting up 401(k)s for their companies and preparing to sell their businesses (free registration required) when they're ready to retire. Do you think you could introduce me to some of the suppliers you deal with, so I can find out if they might need that type of help?"

Mr. Jones now knows precisely which mental file cabinet to open. And that file drawer just may contain some stellar referrals for you.

Want More Referrals? Get a Niche.

There is a long, long list of reasons that you should consider narrowing your focus and choosing one or more niche markets to serve. On just about every measure you can think of, from production and assets to pure satisfaction and enjoyment of the job, Horsesmouth's research has found that niche advisors are more successful than generalists.  But for our purposes, there is one especially compelling reason to "niche up": you're quite likely to get more referrals.

In their survey of more than 2,100 advisors, Horsesmouth asked the question, "Are you getting more referrals since you started working in your niche?"  Check out this chart.

   

It's hard to argue with those results.

Read The Advisor N-Factor, a Horsesmouth special report, and learn more about why niche marketing is so powerful and how you can start marketing to your perfect niche—and rev up your referral results along the way.

How Do I Get Clients to Bring Friends to Events?

Brie, an advisor in Fort Worth, TX, writes:

We are holding monthly educational dinners and suggesting clients bring guests. We are getting the same clients and no guests. Everyone seems to enjoy themselves, but the response is not what we were hoping for.

We asked Katherine Vessenes to tackle this one. Katherine is president of Vestment Advisors and the country's leading authority on building a multimillion-dollar practice.

This could be a good reason to have a client advisory board meeting. Or you could call a couple of them and run through some questions like this over the phone:

Jane, this is Katherine. I just wanted to get some feedback on our last educational dinner. (Pause and wait for a response).

How did you like the food? What where the top three ideas you got from the speaker? Is there anything we could do better?

(What you are looking for here is a rave review--if it is not a rave, the rest of this won't work.  If it's not a rave, take careful notes and use the criticism to improve your next event.)

Great, well I am thrilled you had such a good time, but can I ask you something personal?   You know the best way we can grow our business is with recommendations from happy, satisfied clients like you. We always ask our favorite clients to bring friends because we think that is the best way to meet them and introduce them to what we do. Unfortunately, none of our clients have been bringing friends to these dinner parties! Now, we know each other pretty well, so I thought I could ask you: what am I doing wrong? What should I be doing to get our favorite clients to bring their friends to our dinner meetings?

Once again, shut up and just let them speak--you will learn exactly what you need to be doing. I suspect this little phone call with your top 12 clients will probably have at least 3 or 4 of them bringing guests to the next event. From there, it starts to snowball.  Good luck.

The ABCs of Automatic Referrals: J is for Jumpstart

I've been writing this blog for almost a year and a half now.  There's a lot to say about referrals and client relationships and networking, and I'm glad you are here taking the time to read it.

But you know, when you really come down to it, reading this blog will only get you a fraction of the way to the referral success you deserve. Even reading the Automatic Referrals report will only get you part of the way there.

Because in the end, all the reading and thinking and preparing in the world won't put more clients or assets in your book.

The only way to effect positive change in your business is to jumpstart yourself and take action.

This doesn't mean you should stick with the status quo. You SHOULD read about new and potentially transformative approaches to referrals. You SHOULD think about what you are and are not doing that may be holding you back.  But at some point, you have to stop thinking about getting more referrals, and just get out there and GET them. 

If you haven't tried any of the ideas you've been reading here for the past year and a half, try them. If you haven't gotten around to investing in Automatic Referrals yet, get around to it. If you already have it on the shelf and just haven't found time to read it yet, find the time. 

Then, remember that you can't just read a report and expect magic fairy dust to come spraying out of the pages and transform you into a top producer. You've got to commit yourself to full participation in your own development and your own life. That means actually completing the worksheets in the report and using them in your business. You can also be on the lookout for a series of public Jumpstart programs from Horsesmouth later thi