Financial Planners: Word Of Mouth Marketing – Why it works

What’s the golden rule of western conversationalists? Don’t mention politics, money or religion. So… what do most people talk to their friends about?

Politics, money and religion.

We are told to avoid these topics because at the heart of it – they’re all deeply emotional. At the end of the day, you will make your choices and stand by them – which can often lead to heavy debate!

When it comes to money – this emotional connection is what drives the need for human financial advisors over Robo-advisors. 

Almost every financial planner that I’ve ever spoken to, built their first client base through the power of WOMM – Word Of Mouth Marketing. It’s also known as referral marketing. Every time they met with a new client, they would ask for referrals.

This is why it works:

  1. Clients are affirmed in their decision to choose their planner when they recommend or refer their planner to their friends. They remind themselves as to why they made that choice in the first place, and when their friends agree to meet with their planner, they receive a further virtual-back-patting for their choice.
  2. There is a stronger chance of closing with a new client if they were referred by a friend. The first foundations of trust are already established.
  3. Long-term relationships are easier to forge with clients whose friends use the same planner. When they’re at social events, they will talk about the decisions that their planner advised, which will further affirm and reinforce their choice to stay with that planner for the long term.

These benefits are maximised when the level of service and the quality of communication and interaction from the planner is exceptional.

As a financial planner – what your clients say about you to their friends will either advance or destroy your business and your brand. Which will you let it be – AND – how are you helping them communicate this?

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