Most have the problem of having to sit back and wait for clients or centre’s of influence to refer, but you can generate the referrals you want when you want them.

I do it, and target the referrals I want.

The best way to explain it is with an example.

Let’s say I wanted to do business with one of the biggest firms on the local stock exchange…but had no relationship with anyone of consequence there.  The example I will use is Xero….a rising rock star of the stock market….

If I wanted to do business with them (and it IS just an example, as they are not my target market, but it is a big fish that would too big in many advisers minds), but have no relationships with anyone there of any consequence, I am just another cold caller potentially.  We all know the chances of the cold caller with a good value proposition landing that client….slim.

It is far better to create a referral to the key decision makers, and here is how to do it.

In our example, I googled to find out who the key people there are.  the Number 1 decision maker is the CEO.

I can find out about him now that I know who he is on LinkedIn easily enough…BUT…

…here’s the beautiful bit: I can also find all the people I am connected to who are connected to him.  AND Linkedin list them in order of “connection strength”, giving me an indication of who is most likely to have the strongest connections with him.

Instead of working out how to structure my cold call approach I am already thinking about who I know that knows Rod and who is able to give me the favourable introduction.  Or better yet, a number of “who we both know…”

Clicking on the little dropdown box next to the “connect” button (or rather, next to the “send Rod an inmail” button brings up the following:

This gives me further detail on our mutual connections and links.

At this point I would not use the LinkedIn “introduction” in mail feature.  I pick out the 2 or 3 people who are most likely to help position me favourably, and then I pick the phone up and talk to my existing friends who happen to be connected to the guy I want to talk to.  Explain to them what you want to do and ask if they are ok with introducing you….if you do this well and ensure that it does not reflect badly on your friends, they will nearly always be willing to do it.

Then send them an email after the phone call that outlines briefly what you are asking for, such as

“I really just want to spend 20 minutes having a coffee with Rod because I believe that some of the work I have done with accountants can create some mutual new business opportunities for his business and mine.  If you could just call him or drop him a line letting him know that I am not a time waster I’d appreciate it”

If you have picked the right connections to begin with they will do it every time, and if the person you want to work with gets contacted by 2 or 3 respected contacts, the opportunity door is wide open.

Then it is over to you to pick the phone up, call and chat and set up the time with the referral you generated.

http://financialadvisercoach.com/

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Going the extra mile is great for business.

Everyone has heard some story about how a business did well from going the extra mile for a customer…but rarely do you hear about a professional services business that has a standing process for going the extra mile because it continually improves sales results and profitability.

One practice I deal with does precisely that, and converts 70% of the “uninsurable” cases that would not ordinarily get started. The usual situation for most financial advisers dealing with insurance placement is that there will be a percentage of submitted cases that are declined, deferred or loaded heavily by the insurers, resulting in proposals that simply do not proceed. For the advisory firm this is a serious amount of time and effort that is usually written off…there is a substantial cost involved for the practice in “not proceeding” insurance business.

That sunk cost that the majority of firms write off has been turned around however by one boutique insurance practice. It assumes responsibility on behalf of the client and the insurer to manage the placement of the business proactively.

On any occasion where a client is declined, deferred or has an exceptional loading the adviser initiates discussion with a medical professional to find out more about the condition that has caused the problem. Note that the adviser is not having a conversation with the client’s doctor about the client’s personal case, they are finding out about the medical condition itself from another practitioner. They summarise what they have found out about it, including what has been revealed from a bit of google searching as well. As a standing procedure, alternative medicine and therapy methods are looked into and summarised, and a suggested action plan to manage the health issue is put together for the client.

In contrast to the standard insurance proposal situation when a client is considered a bad risk and simply declined or priced out of the market, resulting in the adviser raising their hands in surrender and saying “sorry, I can’t help you”, this particular business rolls its sleeves up and goes to work for the client quite proactively.

Typically there is a period of 3-6 months of managing the client’s necessary changes to diet, exercise, medication and so forth. The result? Healthier, happier, satisfied clients. Not a bad outcome so far.

During this period of course there is significant dialogue and relationship building with the client as well – and that is priceless. The adviser is no longer someone trying to sell a solution, they have become someone who is taking an active interest in their client living well.

When the necessary change has been managed to the point where it is worthwhile for the client to try again on the insurance, the adviser pays 50% of the specialist or medical reports to put the case for reconsideration to the insurer. But the client has to pay the other 50%….they have to put some “skin in the game” and show that they are serious about getting the plan put in place. There is no doubt however that at this point in time the adviser and the client are in partnership….they are working together to get the client the result they want, which is incredibly powerful positioning.

In over 70% of the cases the adviser is able to get the client acceptable coverage and terms within about 6 months.

Often there is additional premium in the form of loadings, but just as often there is not. The average proposal size is larger however in these cases, and with a 70% conversion rate on otherwise lost business, it is proof that there is money along the extra mile. It would be fair to say that this boutique practice welcomes difficult cases – they are good business and typically generate extremely good clients who value the advice and the relationship.

Which brings us to that final lovely little benefit that arises from this proactive approach: clients are inevitably moved rapidly up the loyalty ladder, and usually become excellent sources of referrals.

www.financialadvisercoach.com

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