How to Build a Hands-free Referral Program with Email Automations

When we talk about referral strategies for financial advisors, most think in terms of face time, relationship-building, and all the work that goes into nurturing the kind of personal relationships that inspire referrals. That’s just peachy if you have infinite time, but if you’re like most wealth management professionals, you’re already overloaded, especially in your referral program. Michael Kitces’ research team found that 83% of the average cost to acquire a referral was an investment of time. Before you kiss your weekends goodbye in the pursuit of client acquisitions, what if we told you there’s a better way? If your day-to-day life runs like a well-oiled machine thanks to features like subscribe and save options on Amazon, automated bill pay, and recurring calendar reminders, imagine what an automated referral program could do for your firm! Let’s break down the three stages of an effective email referral program so you can grow your AUM without sacrificing your lunch hour. 

Stage 1: Remind

Is your CRM reaching its full potential, or is it just a glorified address book? If you’re not harnessing the power of automated emails in your referral strategy, you’re sacrificing time and potential new clients. The key is to identify what time is the best for asking for a referral. As a good rule of thumb, mimic your testimonial process. Is your client fresh out of a meeting with you, feeling empowered, safe, and heard? If the odds are good that they’d leave you a stellar review, they’re also likely to talk you up to their friends and family, but the longer you wait to follow up, the more likely they are to forget. Strike while the good feelings are fresh, and set up your email automation to request a referral within a day or two of scheduled meetings. You should also automate a friendly reminder email if no action has been taken. 

Don’t think email automations are just for clients, either. Centers Of Influence (COIs) can and should be on your email list! But what about the most productive time to ask for referrals from CPAs and attorneys? The secret is to create the best time instead of waiting for the best time to present itself. Steven Jarvis points out, “The advisors I know who are getting the most COI referrals treat their COIs like an A-level client. In other words, every quarter they are finding ways to deliver massive value to the COI.” Cultivate your COI relationships. Take them out to lunch, find ways to make their lives easier, and host review meetings just as you would with a client. Once you’ve touched base and affirmed the value you place on your relationship with them, ask for referrals. Your automation flow could be: request a meeting or lunch > if scheduled, a confirmation > a reminder the day before and information about what you hope to accomplish > a thank you and request for referrals after the meeting.

Stage 2: Refer

One of the best ways to sabotage your referral strategy is by making it complicated. Sharing is caring, and the easier your information is to share, the easier it is for clients and COIs to follow through instead of leaving you on read. Adding referral links to your email automations is an easy way for clients or adjacent professionals to pass along your information with the added bonus of a tracking system. A referral link looks like a normal URL for whichever page on your website you’ve chosen, but it contains a unique ID code that tracks who the referral came from and which actions the referred lead takes on your website. Another great way to ask for referrals is to provide shareable content. Consider creating guides on end-of-year tax tips, or the top 10 mistakes people make when planning their estate, and include a “forward to friend” link in the email. As Meghaan Lurtz concluded based on research findings from Julie Littlechild, people are more likely to make a referral when they feel like they’re being helpful, and shareable, valuable content from your firm fits the bill perfectly. “Forward to friend” links only allow you to track which clients and COIs forward the message (not what happens after it’s forwarded), but this gives you a good idea of who your top promoters are. You’ll learn who to focus on as you continue to develop your referral strategy, and what type of content is most referral-worthy.

Stage 3: Reward

It’s time to say thank you! You can schedule automation triggers based on an email recipient’s actions, so it’s easy to express gratitude without lifting a finger. The key is to improve relationships and increase the likelihood of future referrals by emphasizing a personal connection over a transaction. Whether the referral bites or not, it is crucial to express gratitude to the referrer, regardless of the outcome, for showing confidence in you (tapping into those warm fuzzies we mentioned earlier). If a potential client mentions the person who recommended them in a discovery call, it is important to create and follow a referral procedure by sending a customized thank you gesture to the referrer, such as a handwritten card, wine, or local restaurant gift card. Frequent communication and the personal touch of a thank you provide a valuable reminder that you’re a real, live person, not a corporation, and definitely not like the other guys.

If you’re worried that all of those automated emails might bog down your client relationships, keep in mind that 90% of those who hire a financial advisor report that they’re more likely to stick around and make a referral if their advisor communicates often and shares valuable information. That’s a statistic you definitely shouldn’t ignore! If you’re still worried about leads slipping through the cracks, check out our lead-nurture sequence or go daring with our premium Full Monty Content Plan to take your referral strategy to the next level.