All You Need to Know About Referral Marketing as a Financial Advisor

Marketers have always known word-of-mouth is the best way to sell many products and services, or what we call “referral marketing.”

Referral marketing is what happens when someone recommends your business to their friends and family. Although this typically occurs through word of mouth, businesses can encourage referrals by taking advantage of referral marketing campaigns. So, as a financial advisor, referral marketing is your friend.

Why is referral marketing so effective?

Referral marketing is the most effective way of marketing, according to Forbes.com. It’s human nature to be social and enjoy sharing our experiences with those we know. In fact, we’re wired to do so. We want our friends and family to enjoy the same things we do, so we intuitively invite our loved ones to have the same experiences.

We trust recommendations from people we trust – the nexus of referral marketing. Nielsen found that 92% of people trust recommendations from people they are familiar with. It’s believed that referrals influence half of all purchasing decisions and produce twice the sales of paid advertising.

Because referral marketing is already occurring, you might as well use it to your advantage. This is where referral marketing campaigns can come in handy as a financial advisor.

Referral marketing campaign example

Do you know the best ways run an effective referral campaign as a financial advisor? Forbes.com give us these tips:

  1. Have good timing. Wait until you’ve established a good relationship with your client, then ask for a referral. Encourage them to spread the word about your business. Now, it’s important to follow up with them about the referral, but not right away. Consider waiting months to ask again-you don’t want to pester them.
  2. Benefit the referral and the referee. Make sure your prize for referral benefits both parties. This helps the referrer avoid feeling bad about essentially “selling” your business to their friends.
  3. Give away serious value. Your referral program won’t be as successful if you don’t award referrals with valued products. So, consider offering a discount on services, gift cards to attractive shops or even cash.
  4. Track the referrals. Make sure you deliver on your promise. It can take time for a client to come through on their referral. Ask each new client how they heard about you, and then follow up with the referrer to give them their well-deserved gift.
  5. Thank your clients. Be sure to thank the referrer! This can nurture your relationship with them and even increase their chances of referring again.

With the keys to effective marketing, you can use them to your advantage as a financial advisor, and Securities Training Corporation can help you achieve that dream. Contact Securities Training Corporation to learn how and get started!

 

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