Updated Monday, October 20, 2014 as of 8:31 PM ET

3 Step Process for Client Referrals

Most advisors recognize the value of referrals, but few seem to understand the psychology and the processes that promote referrals. Most often, both parties in a referral situation measure the success of the referral process by the outcome: If the prospect becomes a client, the referral was successful. Advisors need to understand that the most important part of a referral is the behavior. Its the referring behavior not the outcome of the referral that you want to promote and reward. Its more important to focus on the process than on the result to improve the quantity and quality of referrals you receive.

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Comments (3)
Excellent article, particularly the concept of rewarding the referral behavior and not just the referral outcome. Should be on the required reading list for all professional who depend on referrals.
Posted by David C | Thursday, April 18 2013 at 1:53PM ET
Outstanding article. Rewarding your referral source can also be a great way to enhance your marketing. The gift (if appropriate) is a heck of a lot more than others are sending your referrer so you immediately stand out. But if they work in an office environment you can get more bang for your buck if you send the gift to the office for others to see. If this is the case and you can send it to their office make the effort of sending something that makes a lot of visual noise. It might be a big gift basket with tons of cellophane, or a large box of cupcakes, candies or other food items that the referrer would have a tendency to share with others. When a coworker walks by and says "Hey where did you get the candy" Your referrer may say "My Advisor sent them to me because I sent him/her a referral." "Really who is your advisor? I've been thinking of making a change"...voila!
Posted by Adri M | Friday, April 19 2013 at 5:22PM ET
An eye opener article, i truly feel that rewarding your referral source is the best way to enhance marketing skills.
Posted by KIMMY B | Friday, October 04 2013 at 2:20AM ET
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