client service opportunities

6 tips on building referral relationships in down markets

asking clients for feedback during these uncertain economic times can help to maintain strong, trust-based relationships with clients.

“using a well-structured feedback tool to understand what clients need in a relationship with their advisors helps the advisor to do two things,” says industry expert julie littlechild, president of advisor impact inc. “it can help identify opportunities to add value to the client relationship, as well as build stronger referral relationships with centers of influence, such as accountants and lawyers.”

littlechild identifies tactics that can be used to leverage client feedback in two ways – reinforcing existing relationships and attracting new strategic partners.

three tips to reinforce existing relationships:    

  1. demonstrate your value – if you receive high satisfaction ratings from your clients, share this with your centers of influence.
  2. provide reciprocal referrals – if you learn that the client is dissatisfied with their other financial professionals, it’s an opportunity to approach the client with a referral to one of your centers of influence who can better meet the client’s needs.
  3. partner on client feedback to identify mutual referrals – many financial advisors are partnering with an allied cpa when gathering client feedback. while each survey is confidential and geared toward their individual businesses, both look for opportunities for the other.

three tips to attract new referral sources:

  1. find new centers of influence – when a client indicates a high level of satisfaction with another trusted advisor, that advisor may be someone with whom you can network to develop a mutually beneficial referral relationship, with the permission of the client.
  2. contact the newly identified professional to introduce yourself and share highlights of the client’s positive comments. then, suggest meeting to get acquainted and see if there is a fit between the two businesses.
  3. share the results of your client feedback study and determine how you might work together.

“in these trying economic times, maintaining and expanding a professional financial advisory or accounting practice is extremely challenging,” littlechild says. “using client feedback can be a key part of an advisor’s strategy for building and nurturing relationships with centers of influence.”