Coaching for Client Retention: Turning Existing Clients into Raving Fans for Organic Growth

Happy clients are pure gold for growing your financial planning practice. The XYPN benchmarking survey repeatedly confirms that satisfied clients are one of your most valuable sources for high-quality referrals. If you haven't started cultivating a referral culture in your firm yet, there's no better time than now. 

Client Referral Strategies

Set the stage by being a fantastic advisor first and foremost. Serve your clients well so that they want others to experience the same great planning journey that they have. Be sure that you are reviewing their progress periodically so that they see how far they have come with you. While data show that client retention in our industry is very high, there’s no reason for you to take it for granted. 

While you can and should ask for referrals from day one, you also need to keep these recommendations in mind: 

1. Be picky.

Not every client is the right source for referrals. Focus on your ideal clients who perfectly align with your practice's values and expertise. Why are they ideal? What makes them an excellent fit? Why do you want to work with more clients just like them? These are the relationships you want to replicate.

2. Be respectful.

Your clients spend their social capital on you when they send referrals. That’s a big deal for a lot of people. Even more important, you must be respectful that some people may not be comfortable referring others to a financial planner. Personal finances are just that - personal. Talking about money is one of the last societal taboos we’re facing, and your client who adores you may still be uncomfortable saying to their coworker, “Hey, my advisor helped me pay off all my student loan debt and organize a budget because I couldn't do it on my own.” You and I know there’s no shame in seeking financial help. They may not feel the same way. Respect that.

3. Be specific.

“I sure love working with you; I’d love to work with more people like this!” isn’t specific enough. Create a client avatar - then describe it to your ideal clients. The conversation could look like: “I love working with you because I find student loan debt incredibly interesting. I’m so excited that you were organized and ready to hit the ground running when we started working together. Moving forward, I’d love to work with people in a similar situation - optometrists starting a family, ready to pay off their debt, and ready to take action. If you know anyone who might be a fit, would you be comfortable sending them my way?”

4. Make it easy. 

Don’t just pass out your business card and hope for the best. Make referring people to you as easy as humanly possible for clients. Set up a landing page they can send friends or family to specifically for newly-referred prospects to enter their information or schedule a call. Have a spot on your scheduling app for referrals. Have an easy-to-remember email address where clients can do an e-introduction. It can even be helpful to have a digital or physical PDF that you can give to clients to pass along to any referrals that outlines who you are, your firm’s values, and how you can help.

5. Be thankful.

 Always express your appreciation for referrals, regardless of whether they become clients. When someone refers a friend or colleague, send a thoughtful thank-you note. Even if the referral isn't quite the right fit, acknowledge the trust placed in you and follow up to let them know how you helped connect them with a more suitable advisor. Your gratitude will speak volumes and encourage more referrals in the future. 

Utilize Current Systems & Tools

Set yourself up for success by using your systems and tools to make referring clients and their referrals easy.

Your website is your front door. Be sure your ideal clients are addressed on your site. Have an easy-to-find Call To Action. Referrals may not look around long since they trust the person who recommended you. Be sure to ask anyone who schedules if someone sent them to you. You can have a special referral Landing page with a straightforward domain name. 

A special email address can be handy if you are getting full, but also shows your referrals and the clients who refer them that they are being treated specially. Using referrals@yourfirmname.com sends a quiet message that they are unique. 

Use your scheduling software to control the flow of prospects, just as you do with other sources of inquiries. However, if you only take referrals, you will want to make the link private and send it or allow your clients to send it as needed.  If you let referrals get in earlier, you must create a separate referral schedule so they can use a different link than those coming in through your website or other methods. You can accomplish this by having one day a week for all inquiries, for example, Thursdays. The referral link may have a broader availability that encompasses Thursdays and also adds some time on a couple of other days in the week for people to schedule. You may also want a “cut the line” schedule for onboarding calls or any other calls in your process that will allow the referral to get special treatment.  

Create Templates

To streamline your efforts, creating email templates you can quickly adapt for each client is helpful. Below are a few examples to get you started. While you should tailor them to reflect your unique voice and the tone of your firm, having a base template ready will save you time and effort. Additionally, leveraging AI tools can help generate or refine these templates quickly, making the process even more efficient.

Also, remember always to thank clients for every referral; do not thank only those who sign on. It is your job to sign the client; they have already done their job by providing the introduction. You also respect client confidentiality by not sharing who else works with you. 

Example One:

Hi _________,

It was a pleasure chatting yesterday. Insert personal comments on progress or work you have been doing together.

I am looking forward to meeting your friend, _________. I love working with folks at this stage of their financial planning journey. I have included a blurb below if you'd like to pass on my contact information. Once they reach out, I will take it from there, but I will let them set the pace for contacting me. Don’t worry—you know me—there’s never a hard sell! 

Let me know if you have any other questions!

Example two:

Hi _________,

I was thinking of our conversation about finances and wanted to let you know that we’ve been working with the planner name, founder of insert firm name with link to website. They work as fee-only fiduciary advisors, a different focus than many other firms. They provide a brief description of what your firm specializes in. They always offer a free consultation, so feel free to reach out to explore how they can help you out!  

Insert link to planner bio here 
Insert link to planner scheduling app here

Example three:

Hi _________,

We were thrilled to hear you had referred ________ to our firm. We’ll chat with them to share how we might help their financial journey. Of course, in the interest of client confidentiality, this is the last you will hear from us on the matter, but we want you to know that we are so grateful for the trust you have placed in us, and we will do our very best for them. 

We’ve enclosed a small token of our appreciation. Have a wonderful day. 

Warmly, 

Requesting Referrals

Now, you must begin asking for referrals. You can ask at any time, generally at the close of a meeting or when you have reached a specific goal or had a great breakthrough in a meeting. There’s no rule on how long you have been in business or how long you have been working with a client. If you know you want to ask, go ahead and invite them to send you referrals. Don’t hesitate to mention referrals in your newsletter and other client communication. 

You don’t script it heavily, but rather conversational along the lines of, “I absolutely love working on this kind of stuff! If you have friends who need to work on _________, I would love it if you sent them my way. I would love to do this kind of work every day. “ or “You are such a joy to work with. How you think creatively and are willing to share your goals and values with me so we can make such impactful changes is what gets me out of bed in the morning! If you know anyone else trying to sort through aligning their money and life, please send them my way. I would clone you if I could!”

Notice that you compliment them; you share exactly what you love about working with them, and it’s low pressure. Just an invitation and an expression of your gratitude for their business. You don’t ask for contact information. If they volunteer it, that’s great, but you respect privacy and timing by simply sending them to your website, landing page, or scheduling link. You may want to offer to email them some follow-up information they can pass on if a specific topic has come up, such as student loan information or some insurance tips. Let them know it’s a simple intro; you’ll take it from there. 

Reiterate your ideal client in terms of what you enjoy working on with them so they know who is best to send to you. If you leave it to their imagination, they may think what you love about them is something completely different from the criteria you have for an ideal client. 

Do not mention asset requirements; they probably won’t know, and that’s awkward for all involved. Instead, mention planning challenges, stage of life, worldview, personality—anything they might easily know about a friend or colleague. 

If one-on-one referral requests feel uncomfortable, consider hosting client events. I’m a massive fan of setting up a memorable, exciting client event where they’re encouraged to invite friends and family along. Whether it's a wine tasting, a sporting event, or a charity fundraiser, create experiences your clients naturally want to share with friends and family. These events can range from all-client gatherings to exclusive experiences for your top referrers. Be a good host while you’re there and make the rounds, introducing yourself to everyone. Have high-quality swag to give attendees so they keep your logo and firm name in mind long after the event!

Track Growth

You need to be tracking results. You will want to keep track of who your high/frequent referrers are. Track closing ratios: your ratio for a client referral should be very high, over 75%. Track the type of referred clients so you can tweak your messaging to clients if needed to improve the quality of referrals. This can include revenue per client, quality/ease of working with the client, and anything you track on others, but with a reference toward your referrals being your top clients. You do not share this information with others! You are using it to see patterns and learn where the best clients come from. 

Consider establishing an advisory board with your most valued clients and referral sources. This is a way to honor them and get input on upcoming strategic initiatives and the general direction they would like the firm to go. These events would not directly include referrals but rather as a way to tighten the bonds with the clients you most want referrals from. 

Embracing Growth

As your practice grows, you might reach the enviable position of becoming "referral only." When this happens, update your website accordingly and remove general scheduling links. Let your clients know about this change – joining your client's family becomes like a secret handshake. You might want to maintain a waiting list for potential clients who don't come through referrals, but your focus will be on serving those recommended by your existing client base.

Most importantly, when you receive a referral, deliver exceptional service. Someone has vouched for you, spending their social capital to make that connection. Whether or not the prospect becomes a client, ensure they have a positive experience. If they do not fit your practice, connect them with another professional who can better serve their needs.

Remember to close the loop with the referring client (while respecting confidentiality) to let them know their friend was taken care of. Every referral interaction is an opportunity to reinforce the referral culture you're building.

By implementing these strategies thoughtfully and consistently, you'll create a sustainable referral system that helps your practice grow through the most powerful marketing tool available – the genuine enthusiasm of satisfied clients.