What is the best way to ask clients for referrals?

Asking clients for referrals can be a powerful way to grow your financial services business, but it can also be awkward and uncomfortable if you don't do it right. In this article, you'll learn some tips and best practices on how to ask clients for referrals in a natural, respectful, and effective way.

1 Why ask for referrals?

Referrals are one of the most valuable sources of new business for financial advisors, planners, and consultants. They can help you reach more prospects, build trust and credibility, and reduce your marketing costs. According to a study by Nielsen, 92% of consumers trust recommendations from people they know, compared to 33% for online ads. Referrals can also increase your client retention and satisfaction, as clients who refer others tend to be more loyal and engaged with your services.

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Jennifer Salome

Market Sales Coach | Certified Professional Life Coach | Wellness Integration Specialist | Marketing | Community Engagement | Ambassador of Change
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After asking for referrals my entire career, the easiest answer is JUST ASK. Do you know anyone I can help like I helped you today? Text your friends and copy me so I can build a relationship with them like I have with you. You like me don't you? lol I'm building a business that strongly relies on referrals so I would love your assistance.

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Amit Kohli

Mortgage Broker
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In my experience asking for referrals is a strategic practice with numerous benefits.It fuels business growth by bringing in pre- qualified leads through trusted recommendations. Referrals enhance trust and credibility, offering a cost effective marketing avenue. They expand your network, accelerate the sales process and provide quality leads aligned with your target audience. Seeking referrals fosters a feedback loop for continuous improvement, strengthening client relationships and create a competitive advantage. Overall, it establishes a cycle of satisfaction, leading to sustained business growth.

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Prabhu L

📍✍️Delivering innovative ideas Digitally. 📍✍️Premium Goals 📍✍️Enriched content 📍✍️ Advertising and Promotions 📍✍️ Event Management
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Asking a referral is 25% of the pipeline getting auto developed on its own. With good client service potential the work may turn or bring upfront a new lead as a token of appreciation of the wonderful service offered.

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2 When to ask for referrals?

Timing is everything when it comes to asking for referrals. You don't want to ask too soon or too often, as that can make you seem desperate or pushy. You also don't want to ask too late or too rarely, as that can make you miss out on opportunities or lose touch with your clients. The best time to ask for referrals is when your clients are happy, satisfied, and impressed with your work. This could be after you've delivered a positive outcome, solved a problem, or exceeded their expectations. You can also ask for referrals during regular check-ins, reviews, or events, as long as you've established a strong relationship and rapport with your clients.

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Mark Neale

Product Manager & CX Team Lead | Total Security
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Honestly, the best time to ask for anything is when you've delivered a big win and everything is going well. If you have a massive customer base (let's say you're Dropbox or similar) then you're into the Product Led Growth (PLG) strategy for referrals. Dropbox started offering extra storage in return for successful referrals. It was this strategy that skyrocketed their success.

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3 How to ask for referrals?

Asking for referrals in a professional and courteous manner can make a big difference in how your clients respond and how likely they are to refer you. Therefore, be specific when asking for the type of referrals you want, such as those with similar profiles, needs, or goals as your existing clients. Additionally, tailor your request to each client and their relationship with you by mentioning how much you enjoy working with them and appreciate their trust and support. It is also important to be respectful by not pressuring or guilt-tripping them into giving referrals, but respecting their decision and comfort level. Moreover, don't wait for your clients to give you referrals, but follow up with them and remind them of your request. You can also provide them with tools or resources to make it easier for them to refer you, such as a brochure or website, and offer incentives or rewards for giving you referrals.

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Sofija Spasenoska

Events and Communications Officer at LSE Firoz Lalji Institute for Africa I MSc King's College Emerging Economies and International Development
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Client work is a two way street. The client benefits from the work done and you benefit from the gained experience. It is very benefical to seek referrals as 1. You will be able to reach your target audience faster. 2. You will actually receive valuable feedback on your work which will help you adjust your strategy. Making it easier for the client to refer you will make the process smoother, hence one needs to have open communication and be transparent with who their target audience is so it is easier for the client to make the referrals.

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4 How to handle referrals?

Once you get referrals from your clients, you need to handle them with care and professionalism. To do this, be prompt in contacting the referrals and ask your clients to introduce you to them. Additionally, make sure to customize your communication and service to their specific needs and goals. Show your appreciation and gratitude for the clients who gave you referrals by sending them a thank-you note or referral fee. Ask for their feedback on how you handled their referrals and encourage them to give you more referrals in the future. All of this will benefit you, your clients, and their referrals.

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5 How to improve your referral skills?

Asking for referrals is a skill that can be improved and refined over time. To do this, track and measure your referral activities and results. This can help you identify your strengths and weaknesses, and optimize your referral strategy. You can learn from successful financial professionals by reading books, articles, blogs, or podcasts on referral marketing, or joining online or offline communities. Test and experiment with different methods and techniques to see what works best for you and your clients. Additionally, seek feedback and coaching from clients, colleagues, or mentors to enhance your referral skills. Asking for referrals is an ongoing process that requires planning, preparation, and practice. By following these tips and best practices, you can ask for referrals in a way that benefits everyone involved while growing your financial services business sustainably.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Mark Neale

Product Manager & CX Team Lead | Total Security
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It can be incredibly beneficial to frame a referral as a feedback process. This can provide you with the opportunity to identify areas for improvement. I once had a customer tell me that if we could get better at X then they would be happy to recommend me to Y. Naturally they wanted to safeguard their reputation. We improved and got the recommendation - which we won. In this scenario, everyone is a winner. Your customers end up happier. You end up with more opportunity.

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What is the best way to ask clients for referrals?

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1 Why ask for referrals?

2 When to ask for referrals?

3 How to ask for referrals?

4 How to handle referrals?

5 How to improve your referral skills?

6 Here’s what else to consider

Financial Services

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