Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here.
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Dear Bev,
We have solid relationships with many accountants and attorneys in our area. Our clients have recommended us to them in some cases, so the referral comes from someone they know and trust. However, we don’t receive any referrals from them. This year in particular, with the markets underperforming, it seems the accountants and attorneys must have clients who need a second pair of eyes on their portfolios. We would be willing to do reviews at no charge and make recommendations. Why aren’t we seeing referrals from these firms? We have a stellar reputation, and our client satisfaction scores are high. It’s perplexing at best and highly frustrating at worst.
Phil P.
Dear Phil,
You make an excellent argument for why these Centers of Influence (COIs) should be referring to you. Unfortunately you are making the argument to me, and it raises the question of whether you are making an equally strong argument to the audience directly.
We have had the occasion, when doing branding and marketing projects for advisors, to survey advisors’ COIs. We mostly ask questions about how they view the advisor and what words they use to describe the value the advisor adds. Time after time, we hear that (a) the COI doesn’t even know the value prop or brand of the advisor and (b) they don’t differentiate one advisor from another. It’s not that they don’t see the need for financial planning and investing; it’s that they don’t differentiate between one financial professional and another.
It’s important to view the Center of Influence as a valuable relationship, not unlike a prospect or client. Just because they know and like you does not mean you are top of mind for them in their day-to-day activities. You need to cultivate a relationship with them and show sincere interest over time.
Centers of Influence differ from prospects in that they never really close. It’s an ongoing relationship that takes commitment and attention. This is why I don’t believe in quantity over quality. I think it’s important to identify a handful (5-7) of COIs that you have a good connection with and want to work with more closely. Then, develop a plan of communication with them. Provide important information their clients may find valuable, or they personally may find valuable. Don’t try once and then, if no results occur, stop. Keep at it.
Dear Bev,
We have many good relationships in different pockets of our company, but we have very little crossover referrals. We talk about different motivators, but ultimately if someone is rewarded for selling their service and providing good client service in their given area, why do they want to expend the energy or time to give another area a referral?
Scott C.
Dear Scott,
Now that is truth telling! This, in my opinion, is the dirty secret that no one wants to admit in firms trying to achieve cross-sell. At the most basic level, it is the senior management (or shareholders and/or owners) that will benefit most from the cross-sell. A person hired into the company is going to do what they are directed to do, and that will define success in their assigned role. “Helping” the rest of the firm isn’t usually on their radar, and only means more work in many cases. This is a discussion that most senior leaders don’t want to have, but it is a real obstacle to these cross-sell efforts. I believe it is important to at least acknowledge that this obstacle is real and not beat people up for having a normal reaction to the request.
All of that being said, I believe there is another aspect that firms overlook. The client is (hopefully) going to be safer talking to your colleague in another area of your firm than talking to the competitor down the street. If you really want to do the right thing by your clients, you find out what they need and care about, and if there is a solution that could help them within your company, you have a responsibility to introduce them to it. I think there is a sincerity and caring aspect that can be incorporated into the discussion. For the person who really listens to their client, who wants to serve them in the best way they can and who believes in the offerings of their firm, cross-referrals should actually be a natural process whether there is payment for them or not.
That might be my Pollyanna Principle at work, but I firmly believe it is the best way to think about serving clients.
Beverly Flaxington co-founded The Collaborative, a consulting firm devoted to business building for the financial services industry in 1995. In 2008, she co-founded Advisors Trusted Advisor to offer dedicated practice management resources to advisors, planners and wealth managers. She is currently an adjunct professor at Suffolk University teaching undergraduate students Leadership & Social Responsibility. Beverly is a Certified Professional Behavioral Analyst (CPBA) and Certified Professional Values Analyst (CPVA).
She has spent over 25 years in the investment industry and has been featured in Selling Power Magazine and quoted in hundreds of media outlets, including the Wall Street Journal, MSNBC.com, Investment News and Solutions Magazine for the FPA. She speaks frequently at investment industry conferences and is a speaker for the CFA Institute.
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