Communicate your unique value to clients

In The Legal Marketing Blog this week (which I follow, because financial professionals can learn a lot from other professional services firms), Tom Kane asks a great question, inspired by John Janstch: are you your own competition?   The thesis here, applied to our business, is that every financial advisory practice is unique in some way—but that clients don't perceive the subtle differences between advisors and their practices, and therefore view your business as basically the same as everyone else's.   So in fact, you're not really competing so much against other advisors as you are against your own inability to communicate your unique value.

This rings true.  Sure, you may offer the same products or money managers as some other advisors, but essentially, you and your team ARE your business, and since you're all unique individuals, your business is by definition unique as well.  The more you can get that uniqueness across to your clients and prospects, the more you will stand out from all the advisors who don't make a similar effort to differentiate themselves.

Tom writes:

The way to beat the competition is to set yourself apart. Make your firm different—in how it provides services, returns telephone calls, having an identifiable niche, or otherwise doing something differently to stand out from other law firms.

Just replace the law lingo with appropriate terms and this advice applies perfectly to our industry too. 

Remember, though, that it isn't enough to do things differently. If you serve specific niches, make sure to talk about it, even with clients in different niches.  If you pride yourself on a top-notch service strategy, you can allude to it in your client reviews ("Because we are committed to outstanding communication with our clients, our policy has been to contact you an average of once every two weeks.  But we want to make sure we're sensitive to your needs.  Is twice-a-month contact too frequent for you?")

Value is in the eye of the beholder. The real key to differentiation is client perception—so help your clients see you in a unique light, and they'll be better able to refer you.  (Need some help? Search Horsesmouth's library of resources on financial advisor differentiation using the keyword "branding" [free registration required].)

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Get more referrals by being a "connector"

  Chris Holman, the Prospecting Professor, posted a great item last week about The Interesting People Dinner, a brilliant marketing strategy devised by a Minneapolis law firm.  The firm used some very creative and slightly theatrical methods to invite a select group of "interesting people" to a dinner, with the express purpose of helping them connect with each other.  It was all about the guests; in fact, no attorneys from the firm even attended, although all attendees knew who their hosts were.

This type of event is something an advisor could easily adapt, which is of course why Chris posted it.  Financial advisor Cella Quinn of Omaha pioneered a different but equally successful dinner party concept of her own a few years ago.  Her goal: help C-level women executives connect with each other. 

Cella took a mental inventory of the biggest companies and institutions in Omaha. She then composed a list of the highest-profile women who worked in these organizations. "They had to be top decision makers at companies, universities, hospitals, or nonprofit organizations," she says, adding that only 10% were current clients. Then she brought the women together over dinner at her favorite country club (30 of 32 accepted the invitation) and helped them get to know each other.

The evening was such a smash, the women decided to do it again… and again… and again.  They've been meeting every month for five years now (and the members all pay their own way).  For an initial investment of $1,000 and some time, Cella Quinn has brought in 17 new accounts, five of which are worth more than a million dollars.  But she didn't do it for business, Cella says. "I reached out to them as friends." Get the details of how she put together that first dinner in Nicole Coulter's case study, "Create Your Own Elite Dinner Club" (free registration required). 

Something like this doesn't have to be a women-only event.   The only key point is that the guest list must be exclusive, because that is the draw for successful people.  In that regard, Quinn's "10 Club" sounds a lot like the Interesting People dinner party.  Both show the power of facilitating valuable connections among important or influential people.  And both are designed expressly for social purposes—no sales pitches or marketing allowed.   

Which makes sense. When you're the mastermind who's helping others create abundance (free registration required) in their lives, there's no need to talk about yourself, because your actions and initiative speak volumes. The clients will flock to you. Referrals won't be far behind.  And you'll have a blast in the meantime.

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Referral failure: it doesn't mean you're unworthy

If you're uncomfortable about asking for referrals, does that mean that somewhere, deep down inside, you know you don't really deserve them? 

That's what Bill Bachrach asserts in his article "A Boomer-Smart Business" in the March issue of Advising Boomers magazine. He writes:

If you’re great at what you do, you won’t be uncomfortable asking people to introduce you to others. You’d never hear someone say, “I’m a great pilot, but I wouldn’t want to ask anybody to fly with me.”

With respect to Mr. Bachrach, I have to disagree with this premise that advisors are reluctant to ask for referrals because on some level they know they're not really referable.

The truth is that some of the best performing, most client-service-oriented and most conscientious advisors in the business feel extreme discomfort about asking for referrals.   

It's not because they doubt their ability as advisors—not on any level.   In fact, they have the opposite problem. They consider themselves to be professionals of the highest caliber, and they mistakenly view asking for referrals as unprofessional and "salesy." They're afraid that asking will make a poor impression on their clients.

It's that erroneous belief—the idea that asking for referrals is somehow beneath an advisor or will make clients uncomfortable—that prevents most advisors from being more proactive about referral marketing.  Fortunately, these referral fears are unfounded and relatively easy to eradicate.

Is it possible that you're afraid to ask for referrals because on some level you're not fully confident in your abilities, or suspect you're not giving your clients all the attention they deserve?  Sure, it's possible.   It's also possible, and much more likely, that you're a very good or even exceptional advisor who doesn't realize how much you do for your clients and how much they value you. 

If asking for referrals makes you anxious, you owe it to yourself to take an honest and objective look at your skills, your practice, and your client relationships.  If something does need improvement, you can get to work.  And if you're already pleasing your clients more than you've been giving yourself credit for, you can start trusting those relationships and making the most of them. The truth—whatever it may be—will set you free.

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How to turn referral event guests into prospects

Ronald, an advisor from Canada, asked a great question a few days ago:

I intend to have a nice client event, like a wine tasting event, for clients and guests. How do I convert the referral guests without turning it into a pushy sales event?

Another advisor actually asked a similar question a while back on a Horsesmouth discussion board called How to Turn a Client Event Into a Referral Event (free registration required). Here's what referral expert Michael Brizz had to say:

The transition begins with the background information you get on who is coming BEFORE the event. You want to be prepared with conversation starters and know something about their situation and ways you might help. During the event, initiate conversation that will allow you to follow-up. It could be a simple as talking about their golf game and you have a terrific article on some aspect of golf you can send them, info on a camp for their kid, or info on retirement. Use your conversation at the event to get a "hook" that will allow you to  follow-up. Find a way to do a favor for them. Do it, and then in your follow-up, ask for the appointment. 

You can take this a step further, too.  One way is to provide a simple informational packet to each attendee, including a financial questionnaire.  This strategy worked very well for advisor Ron Carson at his wine tasting event:

"Before the meal, Carson gave what he describes as 'the world's shortest commercial' for his firm. He'd left an informational packet, including a detailed financial questionnaire, on each chair, and he asked that guests review it and complete the questionnaire later, at their convenience. In return for an evening of fun and fine fare, he asked one thing from attendees: the chance to see whether he might add value to their financial situation."

Out of 19 guests, 18 completed Carson's financial questionnaire. Seven of the households set appointments, and six became clients. You can read more about Ron Carson's strategy in Case Study: Wine Tasting—How to Attract Affluent Clients (free registration required).

Do you have a strategy for making the leap from referral event guest to prospect?  Share it by clicking on "comments" below. 

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My two sons: a referral success story

T.H., an independent who recently went through our Automatic Referrals Jumpstart Program, emailed the other day with a great story:

As a result of the class I decided to do some network mapping with one of my top clients. I discovered that he had a son that inherited a large amount of money and I also uncovered three other people that are members of my niche market group.

I never would have thought to have done this had I not taken the class. It was also very easy—all I had to do was ask, "How is your family?" to get the process going. I am going to be playing golf with my client and his sons.

T.H. explained to me in a follow-up phone conversation that he knew very little about this man's family, even though he's a top client.   For example, he knew the client had two sons, but didn't know their ages or realize they were grown men who might be qualified prospects.  He also said he was amazed at how much information a simple question like "How is your family?" elicited.  The client just talked and talked.  He's put that question on his agenda to ask every time he sits down with a client. 

Two takeaways. 

1. Go beyond the "need-to-know."  Ask clients questions about their families, their hobbies, their travels. You'll be surprised and delighted how much you can learn.   Remember: people love to talk about themselves (the only thing they love to talk about more is their children and grandchildren!) Realize that these conversations are not just good for client retention; they're critical business-building opportunities too.

2. Use what you learn to identify potential referral opportunities.  If you don't know enough, ask more questions the next time you talk to the client, and keep on showing curiosity until you're ready to ask for an introduction. 

As T.H. told me, "It’s simple things like this that can make your production just go through the roof."

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Why your referral fears are irrational

Does the thought of asking your best clients for referrals make you feel queasy? Do you avoid asking because you're convinced your clients will run screaming, convinced that you're, in the words of one advisor, "a greedy bastard?"

By far, the greatest fear among advisors is the concern that asking for referrals will erode their existing client relationships—that clients will feel put upon and burdened by the request. But this fear is unwarranted. In fact, multiple studies have been done establishing that some 85% of clients are happy to give referrals—if asked (unfortunately, most never are). And in all the years that my colleagues and I at Horsesmouth have been interviewing advisors, we've never once heard a story of damage to a client relationship from asking for referrals.

So, if you're afraid of asking, chances are you have a distorted view of how fragile your client relationships are. You can overcome this challenge with just a small set of mental adjustments. Step back and take an objective and realistic look at your client relationships. For the most part, you're delivering value, right? In some cases, you may actually have changed a client's life—literally. They can retire earlier, or care for their elderly parents, or send their kid to a better college, because of what YOU have done for them.

Unless you have serious problems in your practice, it's probably fair to say that most of your clients like you and trust you and think you're worthy of their friends, family, and colleagues.

After all—if they didn't, would they even be your clients?

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Referral anxiety--how to handle a nervous client

In my last post, Should you contact referrals by email?, we talked about a client who's promised to email some acquaintances and tell them about you, but then failed to follow through.  We said the most likely explanation is simple distraction—the client may simply be busy. 

But there is another possibility.  Maybe she's procrastinating because she's anxious.  Maybe she's worried (and not even aware of it) about what you'll say to her friend or colleague.  What if they're not interested? What if you put on the hard sell? 

If you suspect this may be the problem, it's perfectly fine to raise the subject (gently) with the client.  "It is very kind of you to offer to email so-and-so about me, Joan.  I'm sensing, though, that maybe you're having second thoughts or feeling a little uncomfortable about it?   If so, perhaps we can talk about your concerns to make sure you're comfortable with the process." 

At this point the client might simply say, "Oh, no, not at all... I'm sorry, I've just been very busy at work and hadn't gotten around to it yet.  I'll get that email out tomorrow."  Or, she might agree that yes, in fact, she's got some concerns, and you'll have a chance to allay them.

It can be difficult to initiate these types of conversations. We all have a tendency to want to avoid them, afraid that if we talk about it, the client might decide to rescind the offer of an introduction.  But we have to remember that if a client offers an introduction or referral without being 100% comfortable about it, chances are the promise may never come to fruition anyway—plus, now we've got a tense client.

So get whatever's bothering her out into the open air.  Chances are very slim you'll lose the referral, but even if you do—better to lose a referral than a client.

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Should you contact referrals by email?

In his Referral Minute newsletter this week, Bill Cates discusses a difficult scenario: a client promises to email some people and introduce the advisor, but never does.  Finally he just tells the advisor to go ahead and email the prospects directly himself. 

Bill goes on to offer the following email template to use in this situation:

Subject: Bob Jones recommended I contact you.

Dear Joe,

Your friend, Bob Jones, recommended I contact you.

My partner and I have done some very high-level financial planning for Bob and he thought you should know about the type of work we do.

I was hoping we could find a time to speak briefly over the phone in the next week or so. At that time, we can determine if I might become a valuable resource for you, as I have for Bob.

Perhaps you can bounce back with a day and time frame when we might set up this quick call. Or, feel free to call me at 555-555-5555.

Thank you. I look forward to speaking with you soon.

As Bill says, the point here is not to try to set a face-to-face meeting via email, but rather to "'negotiate' a quick phone appointment," which will hopefully lead to more. 

This is indeed a very helpful template if the only choice is in fact to email the referrals directly. But, as Bill points out, the entire scenario is less than ideal.  Introductions always trump referrals (free registration required).

I like to think of it in terms of football.  Imagine that your client is the quarterback, you're the receiver, and the referral is the ball.  The closer the quarterback is to you when the ball leaves his hands, the more likely it is to land safely in your arms.  The email scenario is like a long pass; there's a lot more room for error and for external forces to push that ball off in a direction you didn't want it to go.  A live introduction over lunch, on the other hand, is equivalent to a handoff from six inches away.   You could still lose the ball in the end, but your odds of success are a heck of a lot higher.

So... maybe we can step back and turn this situation around with a little analysis.  The client promised to email the referrals but never did.  Why?  Most likely, it's just a time problem.  You could offer to draft a quick introductory email for him, explaining that you've done this before and it will be much less time consuming for him that way.  If he likes it, he can just plug in his name and the prospect's name and hit send.  He doesn't have to do any work, and you still get to bask in what we call the "credibility glow" of his introduction.  He may say "no," but hey, it's worth asking.  Your offer may also convey to him that you're serious and really would like to follow up on these referrals, and that alone might goose him into finding the time to get it done himself.

Alternatively, maybe the client is procrastinating because he's actually uncomfortable about providing the referrals in the first place.  We'll talk about that one next time.

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Prospects prefer referrals from "a person like me"

Whose opinion counts most to your prospective clients?  According to the most recent survey by The Edelman Trust Barometer, the answer is most likely "a person like me."   (Thanks to the Church of the Customer for pointing out this link.)

This fits nicely with research conducted by Prince & Associates a few years ago. They found that at 2/3 of affluent clients said they'd prefer to find a financial advisor by referral, and about half of those would look to friends or colleagues (aka "people like me") for that referral:

Your best prospects WANT to find you by referral.  If you're not regularly asking "people like them" for introductions, it's time to get started.

The surprising truth--how referrals affect client relationships

Do you avoid asking for referrals because you're convinced your clients will think you're pushy? Selfish? A "greedy bastard?" (That's a direct quote from a financial advisor explaining why he doesn't ask.)

Get ready for a shock.  85% of the financial advisors we surveyed told us that referrals actually strengthen their relationships with their clients. 

So here you are, convinced that if you ask your best client for a referral, he'll storm out of your office and immediately transfer every last penny directly to your competitor—when the reality is, the relationship will most likely do even BETTER over time if he starts giving you referrals. 

Why? Maybe clients cement your value even more in their own minds when they recommend you to someone else (after all, why would they refer you if they didn't love you), or maybe providing referrals makes them feel like part of your team.  Whatever the reason, it isn't really as counterintuitive as it seems when you stop and think about it.

Do you have experience with this phenomenon?  Share by clicking on the "comments" link below.

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Want more referrals? Show your clients some love.

Whatever romantic plans you may have this Valentine's Day, I've got one more thing to add to your agenda.  Take a few minutes to think about how you treat your clients.

And be honest.  Are you showing them enough love? 

You've got to develop your own creative ways of providing top-quality service. Your goal is to create "raving fans," clients and connections so anxious to tell others about you that they have trouble containing themselves.

How do you create raving fans? Well, it obviously depends in part on your relationship with them. Clients and strategic alliance partners, for example, are looking for different things. But regardless of who's on the receiving end, the bottom line is giving in a way that creates delight.

Take Elizabeth Baldwin-Ross, a financial advisor in Syracuse, N.Y. (one of the country's snowiest spots).  She swung by a widowed client's home one day in February with coffee and muffins for breakfast, but found the home snowbound and vacant. So she borrowed a snow shovel from a neighbor and shoveled the walk. "Of course, I returned the shovel with a thank-you note written on the back of my business card," Baldwin-Ross told us. "My client tells that snow-shoveling story to everyone she knows."

And that's no surprise.  When it comes to referrals, love really does make the world go 'round.

Already sharing the love?  Tell us how you delight your clients by clicking on "comments" below.

Want more ideas for turning clients into raving fans?  Check out these articles (free registration required):

9 Client Service Tactics That Generate Business
With more and more investors carping about lackluster service, now's the time to take that extra step that really shows clients you care.  Here are nine creative service tactics that build more than goodwill--they build business.

How to Win Your Clients' Appreciation
Inspired by a Broadway star's passion for his audience, this advisor decided to win her clients' loyalty by treating them like front-row fans.

7 Service Tips That Have Clients Feeling the Love
In a new book, the retail magnate who's dressed Wall Street's best shares his secrets for building loyal, long-lasting client relationships.

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Referrals: how often can I ask?

We got this email not long ago from Terry, an independent in Houston:

I have been trying to incorporate referrals for my business plan. However, I am not sure of two things: 1. How often can I ask a client for a referral and 2. What about clients I have not worked with for a long time (less than a year)?

We hear variations on these questions quite a lot.  Here's what we told Terry.

There is no hard and fast answer to how often you can ask a client for referrals. Like many things, it depends entirely on the client, your relationship with the client, and what types of referrals or introductions you're asking for. Some clients will have a helper mentality—either they'll be very interested in helping you, or very interested in helping the people they're referring. Those people can be approached with more frequency.

In general, though, it's better to be safe than sorry.  Target your referral requests very carefully, so you get maximum "bang for the buck," and don't ask any one client for more than a few referrals or introductions during the course of a year.

If you target your requests properly, you'll have a better chance of actually getting a client as a result. You'll also be raising the client's awareness that you're interested in referrals, so he or she may be more likely to start offering them proactively. Also, if you're focusing your efforts too heavily on any one client, that probably means you're not fully investigating and maximizing referral opportunities with other clients and referral sources. As with investments, it's good to stay diversified!

As for the second issue, it's critical to have a solid relationship with any potential referral source before asking them for something. Give first, get later, is a good golden rule.

If your business is mostly transactional and you've been in close contact with a client but not written any tickets for a while, it may be just fine to ask for a referral or introduction.  If, on the other hand, you literally have not spoken or met with a client for 6 months, your first conversation would not be the appropriate time to ask--unless you're able to deliver some serious value (free registration required) in that conversation ("Mrs. Jones, I just called to let you know your portfolio is up 20% since July") and feel VERY comfortable that they're feeling warm and fuzzy about you.

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4 ways NOT to ask for referrals

In a recent post, I talked about the client-centered referral mindset: positioning your referral requests in terms of how you can help your clients and the people they know, not in terms of how they can help you.

Common sense, right?  That's why it's amazing how many "referral experts" recommend methods of asking for referrals that not only focus on the advisor, but actually border on blackmail.

Do any of these sound familiar?

• "I can either spend my time looking for new clients or providing better service to your account. You determine that via the referrals you send me. Which will it be?"
• "Since you've found value in what I've done for you, let's sit down and brainstorm: Who do you know who could benefit from my services?"
• "I'd really appreciate it if you could refer me to a few of your friends. I need new clients to stay in business—it's so hard these days to find prospects."
• "There are two ways I get paid—from commissions and from your referrals."

As Horsesmouth expert and referral guru Michael Brizz says, if you're going to position referrals that way, you might as well have the word 'bloodsucker' branded across your head.

Here's a better way:

"You mentioned that your father is retiring soon and that he's been worrying about what's going to happen with his company's pension plan.  I have helped a number of clients who have also retired from XYZ Corporation over the past few years, and I think may be able to answer some of his questions and put his mind at ease.  Would you like to talk to him about setting up a time for the three of us to get together?"

See the difference?  Now you're a potential hero—a caring expert rather than an extortionist.

Check out chapter two of Automatic Referrals for more about the client-centered referral approach.  Also, take a look at Referrals: 8 Tactics That Make Asking Easier (free registration required) for more about how to make your referral requests more effective.

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The $3 million thank-you note

Bill, an advisor in Northampton, Mass. wrote in to tell us this incredible story:

I read Katherine Vessennes' article about thank-you notes (free registration required) in Horsesmouth and began writing them myself. About two weeks into it, I wrote a note to a woman from my community who had given what I thought was an especially well-done commentary on our local public radio station. She was so surprised to receive a hand-written note that she showed it to her retired parents. Her father said, "I want to meet that man." To make a long story short, the parents transferred accounts totaling more than $3 million to me.

As we say in the Automatic Referrals report, "When you give, you get.  And, ironically, the less you concern yourself with the getting, the more wealth and success will come your way." 

The proof is in Bill's $3 million pudding.

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Communicate value, build loyalty, and drive more referrals

In a recent "Marketing Tip" newsletter, Richard Weylman makes the critical point that our clients often don't recognize our value, even when it's staring them in the face.  They may not realize all of the complex and time-consuming work going on behind the scenes on their behalf, or they may be so wrapped up in their own lives that they just don't take time to think about how much you're doing for them.

There's the rub: getting clients to recognize your value is job one if you want them to refer you.  Weylman suggests these small but effective methods to communicate your value and build client loyalty:

• Publish an organizational flow chart (who does what).
• Conduct monthly service calls and select a process or outcome highlight.
• During face-to-face reviews: review services, processes, and product applications. Be pithy, powerful, persuasive and curious.

You can see the common thread in these techniques—they serve to make your process and team more transparent to your clients.  Don't be afraid to let them see firsthand how hard you work for them, and don't hesitate to tell them—with grace and subtlety, of course—just how much value you really provide.

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Reputation = Referrals

A colleague of mine had a frightening and frustrating experience recently that got me thinking about the power of word-of-mouth, both for good and ill.

We got pounded by a monstrous nor'easter.  Elizabeth was driving home from work in the middle of a heavy snowfall when the rear window of her year-and-a-half-old BMW suddenly shattered.  It scared her badly and positively traumatized her yellow Lab, Cooper, who was in the back seat.

Luckily, no one was hurt. Elizabeth and Cooper limped home, enduring the frigid air and the snow for the two hours it took them on the slick roads.

At the dealership the next morning, Elizabeth found herself haggling with a very unsympathetic service rep about how quickly they could fix the window and whether or not the warranty would cover the repair.  Unhappy but without options, she left the car in the parking lot (the service bays were all full), covered with a tarp (remember, there's a gaping hole in the rear and now it's pouring rain) and asked them to move the car inside as soon as possible. 

You probably won't be surprised when I tell you that when Elizabeth returned at the end of the day, not only had her car NOT been repaired, but it had been left to sit in the torrential rain for the entire day.

Elizabeth told me the story.  She told lots of other people the story. Now I'm telling YOU the story (although I am refraining from naming names).  And it's not a story any car dealer would want people to hear.  I can't help but wonder if the owner of the "Evil Dealership" has any idea that his business is imploding and that the service department is Ground Zero. 

(I should point out, as an aside, that after telling me her tale of woe, Elizabeth asked me if I knew of a GOOD dealer in the area.  I was delighted to tell her about the dealership where I bought my last car—and where I and my vehicle have always been treated with great care and respect.  They give me consistently great service, and I rewarded them with a referral.)

Even the most stellar of reputations can come crumbling down in very short order thanks if you mistreat someone who has a big circle of friends and the gift of gab.  But Give clients reason to sing your praises at every turn (free registration required) and you really can build an unstoppable business.

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Cultivating raving fans—a referrals lesson from J. Crew

Jackie Huba at the Church of the Customer has a great lesson in client service from, of all places, clothing retailer J. Crew. Seems Jackie stopped into her local J. Crew store to return some items on her way to watch a Steelers game at a local sports bar.  A clerk named Natalie helped Jackie with her returns, they chatted a bit about the Steelers, and then Jackie was on her way.

A few weeks later, Jackie got a handwritten note from Natalie containing a $10 J. Crew gift card, suggesting she drop by the store next time she was in the neighborhood to check out the new fall line. 

Jackie's reaction? 

If Natalie was a stock, I'd invest in her.

I've spent thousands at the Gap and Banana Republic but never received a note like this. I couldn't name a single employee at those two stores.

But I'll remember Natalie.

Tell us your story. What are you doing to turn your clients into raving fans (and drive more referrals)?

Think you may need to show clients a little more love? Here are some ideas from Horsesmouth (free registration required):

The 15-Minute Marketing Workout
Build relationships and boost your referrals with this low-tech, low-cost marketing strategy. It's incredibly effective, yet so simple you can get it done while you drink your morning cup of coffee!

Deliver High-End Service to Build a High-End Clientele 
Ever wonder why the same clients who grumble about your fees drop big bucks at high-end hair salons?  A little pampering can go a long way.

Impress Top Clients With 'Love-Affair Marketing'
In this competitive and uncertain world, romancing your clients with kind gestures can win their loyalty--and help solidify your business.

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Create "referral moments" by going above and beyond

I enjoy watching "referral moments" happen in my daily life.  I had that pleasure today.

I was supposed to get my teeth cleaned at noon. Unfortunately, my son's school play was cancelled last week due to a snowstorm and rescheduled for today at 1:00 p.m.  There was no way I could make both.  And the dentist's office policy is that if you cancel on the day of the appointment, you still have to pay for the visit. My day was about to get a lot more expensive.

I called the dentist's office and told the scheduler my situation, confirming that indeed, the normal policy would be that I'd have to pay if I cancelled.  But then, just as I was resigning myself to a double-whammy bill, she lowered her voice and said in a confidential tone, "Can you make it tomorrow at 10?"  "Sure thing!" I said.  "Ok," she continued conspiratorially, "you just come in then."  Clearly, she had just bent the rules and was not going to charge me for the switch.

It wasn't half an hour before I was telling this story to a coworker--because she'd just mentioned to me that SHE was about to cancel a dentist appointment for tomorrow.  Imagine what might have happened if, say, she'd been having trouble with her dentist, or if they gave her a hard time about rescheduling?  "Hey, Miriam, who's that dentist you were just telling me about?" 

In fact, she wouldn't even have had to ask.  I was feeling so warm and fuzzy at that moment that I would have offered the referral on my own volition, if my colleague had said even so much as, "My dentist doesn't have Reader's Digest in his waiting room." 

Now, don't get me wrong.  I would not have held it against my dentist if they'd held to their policy.  But I wouldn't have become a raving fan (free registration required), either. 

Do you go above and beyond for your clients (free registration required)?  Have you empowered your assistant and others who work with you to do whatever it takes to make clients feel that they come first?   Because the first step in getting more referrals is converting clients into raving fans.

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Should you avoid the word "referral" when you say thanks?

Randy, an advisor in Canada, wrote us recently with a question about thanking referral sources:

Some time ago I read something to the effect that it is more effective and respectful not to use the word referral when thanking someone who has suggested that someone should deal with us. As I recall, it was something like, thank you for introducing us or thank you for telling Mr. Graham about our services. The intent of the message was to get across that we appreciated our client telling someone about us, but also that we did not consider them the be part of our sales/referral system. It was more about mutual respect, rather than "Yahoo, thanks for bringing me more business!" The article stated that saying 'thanks for referral' brings the focus back to the advisor and how the advisor would benefit. But the focus should be on the new client and the person who suggested the new client talk to us.

Does this sound familiar, or can you add to this?

Randy is 100% right about his general point: throughout the process of asking for and following through on referrals, the focus should be on the referral source and the person he/she is helping you meet, not on your business development strategy.

With rare exceptions, clients don't care much about you—and why should they? They're paying YOU to help THEM. They're concerned with what you can do for them and for the people they care about.

That's why we recommend a client-centered approach to asking for referrals. This means focusing on bringing value to your client relationships: enhancing their lives and the lives of people they know.  Focus on the needs of people your clients know and how you can help them, rather than on how they can help you. 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.

The real point here is not  your choice of words—it's your mindset. If you're truly client-centered, that will come across. Similarly, if your primary concern is really getting more business, clients will probably pick up on that, regardless of which words you use.

However you phrase your thank-you, make sure to offer one in a timely fashion—and all the better if you do it by hand on high-quality stationery (free registration required).

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