In the world of financial planning, referrals are still the number one contributor to firm growth. However, the key to harnessing this growth potential requires you to understand the nuances of client satisfaction and engagement.
In this webinar, Vice President of Product Marketing, Amy Galli and President & Founder of Amplify Your Voice Studio, Ali McCarthy discussed the science behind the connection between referrals, client satisfaction, emotional intelligence, and the quality of your communications.
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The Significance Of Referrals In Advisory Firm Growth [1:59]
Referrals remain at the top spot for advisory firm growth this year.
71% of new business growth comes from referrals and 58% comes from existing clients.
Firms with client referral plans and business partner referral plans generated 1.6 times. and 4 times more new clients.
The Factors That Contribute To Your Referrals [4:55]
Client satisfaction: The Net Promoter Score (NPS) which measures client satisfaction drives revenue growth.
The client feeling connected: Advisors that are emotionally intelligent receive 2x more referrals.
Advisor’s communication style: 89% of clients said communication was a top factor in providing referrals.
What Are The Drivers Of Client Satisfaction [5:59]
Your Net Promoter Score (NPS) shares how likely you are to refer a firm to someone else.
It creates the power to show that you are actively listening to your clients.
The average financial services NPS is 45-Having a strong NPS is a great way to go deeper with your clients.
Advisors with higher NPS have higher client satisfaction and loyalty.
The Power Of Emotional Intelligence [10:51]
Emotions still impact a client’s overall satisfaction. (82% of clients surveyed said that feeling financially secure is important but only 52% actually feel financially secure.)
Emotional intelligence enables an individual to understand and control their emotionsso they can better understand and relate to others. In fact, 90% of top performers have high EQ!
There is a 6X increase in demand for emotional intelligence in financial services sector, and advisors with higher emotional intelligence have 2X the amount of referrals than those with lower EQ.
How to Implement Emotional Intelligence To Grow Referrals [25:26]
Emotional intelligence is something that can be learned over time.
Identify the key EQ skills that are important to your team and offer training when needed.
Deliver more meaningful and personalized communications and experiences.
If you provide more personalized communications then the following will occur: 1- Fear of investing will be reduced 2-The openness to change will increase 3-Connections will strengthen and 4-Referrals will grow
Use Content To Impact Client Engagement And Advocacy [26:15]
Focus on the topics that your clients care about, such as fulfillment, peace of mind, achieving goals and managing money.
Avoid jargon: whether it’s on your website or in your content marketing, write how your clients speak.
Think about timely financial planning topics. (Based on what is happening in the news, share ways that this could affect your clients and show how you can help.
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