The Ins and Outs of Referrals

The interior shift must be made in your heart and mind. You simply have to find a way to get over your fear, doubt, obsession, phobia, or whatever else may be in your way. Begin by contemplating a few simple facts. First, the overwhelming majority of satisfied clients are delighted to give referrals. It's similar to what happens when you see a great movie, or get a great massage. When you share rave reviews about a movie or masseuse with a friend, you do this because you want them, in turn, to get the satisfaction of seeing that wonderful movie or getting that terrific massage. You beam with a certain kind of pleasure and pride from having turned your friend on to such a wonderful experience.

It follows that if you are providing truly exceptional service to your clients, most will be delighted to refer you to their qualified colleagues, friends and loved ones. And by referring you, they gain — rather than lose — social capital. Plus, it's an opportunity for your clients to further deepen the consultative relationship that they already share with you; some will even come in prepared ahead of time with written-out names and contact information.

The Exterior ShiftOn the exterior side of things, you need to implement a consistent and ongoing mechanism for asking for referrals. Begin by using a written agenda for every client meeting. Doing so shows the clients you value their time, and makes your meetings more professional, efficient and effective. It also gives your clients a place to take notes and jot down follow-up items. Finally, a written agenda enables you, as a matter of course, to easily ask for referrals at every meeting.

The first time you use a written agenda some of your clients will likely scan down it and ask "What's this about referrals?" Simply explain that by making referrals to you, they help you to help them, because the time you're no longer spending on marketing and promotion can instead mainly be spent on serving existing clients. After you've made the interior shift, this should be a simple and matter-of-fact conversation.

But the use of written agendas is only part of the exterior shift. CEG Worldwide has created a detailed 12-step process, previously discussed in my August 2007 column on "The Art of the Referral" and summarized in the sidebar. Important mistakes to avoid include failing to ask for referrals at all, failing to follow through on referrals received, and failing to only pursue clients within your ideal client profile (which means you have to let your existing clients know exactly what kind of referrals you're seeking).

Practice Makes PerfectIf you want to build a great business and you're not already regularly asking for referrals, then follow the Nike adage and "Just Do It." While it's true that some clients have the kinds of privacy-oriented personalities that make them very unlikely to give referrals, it's also true that the vast majority of clients never give referrals simply because they're never asked. (Most clients, for their part, think they're never asked because their advisor is too busy and not taking on any new business.) For those few clients who make it clear that they're permanently uninterested in referring, simply drop the referral item from their agendas; but do this by exception, not by default.

Lastly, don't try to go it alone. Your odds of success greatly increase if you enroll others to help you succeed. Appoint someone in your office to own and run the referral process, someone who makes sure that you regularly provide written agendas, do the actual asking, and then follow through in all necessary ways: thank-you notes, scheduling appointments, etc. Practice makes perfect, and before long you'll be quite glad, inside and out, that you referred to this column.

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Patricia J. Abram is a senior managing partner with CEG Worldwide in Florida; see www.cegwordwide.com.