1. A higher level of trust and professionalism
Through referrals, your new prospects and clients are likely to trust you because they know that their friends or relatives had a pleasant experience working with you. With greater faith in your working style, they are likely to follow your recommendations.
2. Higher Meeting and Closing Ratio
Cold-calling, street surveys, and roadshows are not as effective nowadays, as potential clients do not know you and have no reason to trust you.
Referrals help to bring in trust. Hence, with greater trust in the advisor, potential clients are more likely to meet up with you and purchase products from you.
Asking for referrals can get you more closings than doing cold activities. Many of the successful advisors close most (or all) of their sales through referrals.
“Referral-based sales has twice the closing ratio compared to other lead sources.”
3. Leverage on other people’s network
Your clients may introduce you to their friends or relatives of higher standing in society. You can use the opportunity to work with a different target market (e.g. from mass market to middle affluent market to high net worth or even listed company bosses)
For team managers, when you upgrade your case size, you can focus more on agency building. You can divert more attention to coaching, recruitment, training and having agency meetings.
4. Consistency of quality meetings
When clients refer you to their friends or family, they are likely to be potential clients who match your requirements. This will ensure high-quality meetings, which leads to
5. Immediate business discussions
When your clients refer you to their friends or family, they know that you are an excellent fit for that person. This will mean that there will be higher closing rates, as the new potential client is looking to purchase the products or services that you are offering.
On the first meet up, they already have the basic idea of the things you can help them with and discuss business.
That’s all for today! Click on the link below to download “The Ultimate Referral Asking Checklist” by our Principal Coach, Chris Chan.
