Tip of the Week April 28, 2010
By David Miller
What is the proper etiquette on addressing the issue of a referral that is not a good fit?
What if that referral comes from a favored client?
Great questions for sure, and ones that we are asked on a regular basis. Let’s first separate this issue from the instance of a referral from a favored client’s close family member that is a non-fit for our practice.
Clearly, there are instances where we take it on the chin for our best clients, and this is a classic. Our recommendation for these instances, whereby a AAA client would like us to work with their grandchildren, sons, daughters etc., is that you simply say: “I would be happy to.” It should be considered an extension of client service, and something that you reserve for only your best clients. Period.
All that said, what about a referral from a favored client that does not fall into that ‘close family member’ category?
This is actually an issue that is easily addressed, and it should be addressed upfront, and as soon as possible, with your preferred clients.
The phraseology is as follows, positioned within the advisor’s existing Introduction Process. If you don’t currently have an Introduction Process, you can make use of the one below:
Bob, as one of my preferred clients, I want you to know that over the course of our relationship, you may encounter someone you know who is expressing uncertainty about the economy, or perhaps they have questions about a critical financial event they are going through, maybe they are dissatisfied with their existing advisor.
So should you ever run into that situation Bob, and if that person is important to you, well then they are important to me. I will always make the time to meet with the people that are important to my best clients. I can act as a sounding board for them, and although I must stress that there is no guarantee that the person will be a good fit for me, that is irrelevant. I will still always make the time to meet with them.
If it is not a good fit for me, or for them, I will do everything in my power to point them in a direction that is beneficial to them.
Any questions?
You will notice that as part of the Introduction Process above, we address the issue of a potential non-fit in a forthright and transparent manner. We tell the client it may happen, and if it does, we will still try to help them.
We achieve the same result with our favored client regardless of whether it is a fit or not. We did exactly what we said we would do, and the only caveat we gave to the client about meeting with someone they know, is that they be important to that person.
That last fact by the way is also a key point. Getting a stream of predictable referrals is hard enough without burdening your clients with the précise criteria that you are looking for in a potential client. Forget all that, and just make it easy for your clients: Just keep repeating the above Introduction Process at every face-to-face meeting with your best clients.
Their only task is to be on the lookout for people that are important to them that may need assistance, and you have already covered the fact that it will not always be a good fit, but you will take the time to meet with them anyway.
That is simply how you conduct yourself with your best clients, and that message will come through loud and clear.
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