Referrals, prospects pose a challenge for some advisors, post-pandemic

As advisors increasingly work with clients and prospects virtually as well as in-person, many are looking for ways to successfully carry out one of their most critical tasks: obtaining referrals and introductions. During a recent interview, Bill Cates, president of Referral Coach International and author of Radical Relevance, offered some critical insights on acquiring referrals today.

It’s been an interesting evolution, Cates said, as he described some of the ways in which the pandemic has changed the way advisors obtain referrals. For some, he added, the shift to working virtually with prospects and clients was easy, as many had already been using zoom and similar platforms to meet with prospects and clients. For them, it was business as usual – maybe even better.

As we know, he pointed out, the pandemic created an increased awareness of our mortality and spurred many folks to pay closer attention to their financial planning. He has interviewed and coached advisors who struggled with client engagement and client acquisition during the pandemic. And he has interviewed and coached an equal or higher number of advisors who had record years in 2020, 2021, and 2022. In fact, he has just met with his own advisor for lunch and “despite the downturn in the market and the lingering effects of the pandemic, he’s had his best year in his 19 years in this business,” he said.

More specifically, with referrals/introductions, it has also been a mixed bag, he said. The advisors who stepped up their ability to create client engagement and who create great experiences for their clients increased their referability. As a result, their unsolicited referrals increased. “And when they asked for introductions,” he said, “their clients were open to the idea. It is engaged clients who provide referrals and make introductions.”

Pandemic-related challenges

According to Cates, one of the most difficult parts of the referral process – which was surely exacerbated by the pandemic – is the transition from a client’s willingness to refer, to creating an introduction that results in a strong connection to the prospect.

Without an effective introduction, the referral often fizzles, he added. In-person introductions weren’t possible. Prospects and clients also weren’t visiting with their friends as much – and certainly not in person. Just about every relationship was impacted in some way. He said that some advisors picked up on his method of creating Electronic Handshakes, and a few got quite good at getting their clients to introduce them via zoom.

Another challenge that some advisors experienced was in the relationship-building process, Cates said. Many found it harder or discovered that it took longer to establish a high-trust relationship over the phone or via zoom-like platforms.

Therefore, many advisors became reluctant to ask for introductions. “They felt they hadn’t established the same level of value and trust they were used to creating during in-person meetings,” he said. Adding to the challenge was that if one was already a bit reluctant to ask for introductions, any little change in routine or in meeting dynamics could create an excuse that held them back.

Getting referrals today

What has not changed is that advisors must still create great value connections and personal connections with their prospects and clients, Cates said. They must become super referable, and they need to remain appropriately proactive, i.e., promoting introductions and asking for introductions.

In today’s environment, now more than ever, advisors must focus on securing great introductions to their prospects, Cates added. Whether they ask for introductions, or the referrals are volunteered, they are not done until they have secured the introduction.

This introduction can be in person, via zoom, through an email message, and even via a text message. “The prospect needs to know who you are before you reach out to them and have some sense of the value you will bring to them,” he said.

Cates urges all advisors to seriously consider focusing on, and building a reputation in a target market. “When you become known for something within a target market, you have moved from push prospecting to attraction marketing. Everything gets easier and more profitable,” he said.

 

Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at [email protected]. 

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