We’ve had so many financial and legal professionals contact us and ask how they can use our celebrity stories about estate planning to help their businesses. In addressing this, we came across a fascinating research study that covers this very topic.
It’s the “Economics of Loyalty” study, by Advisor Impact and sponsored by Vanguard. It surveyed clients of financial planners to learn what differentiated clients who are merely satisfied from those who are engaged enough to make referrals. It found that “engaged” clients made an average of 2.3 referrals, while those who were merely “satisfied” referred none.
The study also found another startling conclusion … there is almost no correlation between asking for referrals and receiving them. Rather, most clients made referrals to help their friends, co-workers and families members in need, not the professional. In other words, to earn referrals and build your business, you have to show clients that you are able to provide a benefit to people they might refer to you.
How do you do this? Read more...