The Advisor’s Compass Tips: Client Referrals

Updated: 29th January 2025 | Garry Crole

InterPrac’s Advisor Compass is proudly supported by Capital Prudential, where we navigate market shifts and maximise your practice.

 

Getting more referrals as a financial planner often comes down to building trust, creating a positive experience for clients, and actively asking for referrals in a way that feels natural and valued. Here are some effective tips to help you encourage more clients to refer you:

1. Deliver Exceptional Service

The foundation of gaining referrals is providing outstanding service. If you go above and beyond for your clients, they’re more likely to speak highly of you. Make sure you:

• Listen carefully to their needs and concerns.
• Provide personalised, clear, and actionable advice.
• Offer timely follow-ups and check-ins.
• Ensure your clients feel confident and well-informed about their financial decisions.

2. Build Strong Relationships

Relationship-building is key to client loyalty and referrals. The more clients feel connected to you, the more they’ll be willing to refer others.

• Show empathy and be approachable.
• Celebrate milestones with your clients—birthdays, anniversaries, retirement, etc.
• Be consistent in your communication and offer value even when they’re not actively seeking advice.

3. Create a Referral Program

Sometimes, clients need a gentle reminder or incentive to refer you. Offering a referral program can motivate them to spread the word.

• Offer small thank-you gifts or discounts on services for successful referrals.
• Keep the process simple and transparent—make it clear how clients can refer and what they’ll receive in return.
• Consider offering educational content or exclusive insights to referrers as a token of your appreciation.

4. Ask for Referrals Directly (But Tactfully)

While it might feel awkward, asking for referrals is a natural part of growing your business. Be subtle but direct in the right moment:

• After you’ve helped a client achieve a positive outcome, mention that you’re always looking to help others in similar situations.
• Ask for referrals at the conclusion of a successful meeting or when a client expresses satisfaction with your service.
• Use phrases like, “If you know anyone who could benefit from my services, I’d love to help them,” or “Your referrals mean a lot to me.”

5. Leverage Testimonials

When your clients are happy, ask if they would be comfortable providing testimonials for you to use on your website or social media. This builds credibility and can also act as an indirect referral.

• Feature client testimonials on your website or social media to build trust with potential clients.
• Create success stories that resonate with your target market and make the client’s story relatable.

6. Engage with Clients Through Social Media

Maintain a visible, professional presence on social media where you can share valuable insights, tips, and relevant content.

• Post regularly with educational content, success stories, and financial planning tips that clients can share with their networks.
• Engage in conversations, respond to comments, and share client achievements (with their permission) to demonstrate your value to potential referrers.

7. Networking and Partnership Building

Referral sources can also come from other professionals. Build partnerships with accountants, lawyers, real estate agents, and other professionals whose clients might benefit from financial planning services.

• Attend industry events, webinars, and community gatherings to build connections.
• Offer value to these professionals in your network and find mutually beneficial ways to collaborate on client referrals.

8. Reward Clients for Referrals

Incentivising referrals doesn’t always mean a financial reward. Think creatively about ways you can thank clients:

• A handwritten thank-you card.
• A donation to a charity of their choice.
• Invitations to exclusive client appreciation events or webinars.

9. Focus on Niche Markets

By focusing on specific niche markets (e.g., small business owners, retirees, young professionals), you’ll have a better chance of becoming the go-to expert for that group. As your expertise becomes well known within a certain community, word-of-mouth referrals will naturally increase.

• Attend local events or online communities related to your niche.
• Share content that resonates specifically with the problems your niche faces.

10. Make Referring Easy

Make the referral process as simple as possible. Provide your clients with business cards, a referral link, or an easy online form where they can quickly pass along your information to others. If the process is easy and seamless, clients will be more likely to refer.

11. Follow-Up and Say Thank You

When a referral does happen, always follow up with a thank-you note or call. Even if the referred person doesn’t become a client, thanking your referrer ensures they feel appreciated and are more likely to refer again in the future.

12. Offer Workshops or Webinars

Hold informational workshops or webinars on relevant financial topics. Not only do these sessions position you as an expert, but they also give your current clients an opportunity to invite their friends and family to learn more about your services. When people attend, they’ll see your expertise firsthand, increasing the likelihood of referrals.

13. Stay Consistent

Regularly touch base with clients, even if there’s no immediate financial advice needed. Periodic check-ins or sending out valuable content (like financial planning tips, newsletters, or industry updates) helps keep you on their radar and top of mind for referrals.

14. Ask the Right Timing

Identify key moments in your client’s journey when they’re most likely to refer others, such as after a financial goal is achieved or after a positive meeting. Timing your ask can make the difference between a referral and a missed opportunity.

By consistently delivering great service, building strong relationships, and making it easy for clients to refer you, you’ll increase the number of referrals you get as a financial planner. The key is to always make clients feel valued and let them know you’re there to help others just like them.

 

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