6% of advisers/planners don’t thank clients for referrals.
A significantly larger 77% do better by sending an email or picking up the telephone.
However, only 20% harness the power of input and effort bias to demonstrate how much they value and appreciate the introduction.
In this week’s blog, you’ll learn what the 20% do, why it works, and why we’ve recommended it for years.
A practical demonstration of the theory
Let’s start by demonstrating the theory using a story Phill Agnew told us when he appeared as a guest on our webinar series earlier this month.
Phill explained that a couple wanted to buy a house in a particular area. Unfortunately, only 20 were available and none were up for sale. Instead of speaking with an estate agent, or looking further afield, the couple got creative by writing a letter to each of the owners.
Several invited them round for a chat, two invited offers, and one agreed a sale price. That’s a great result, but the most interesting thing, as Phill explained, is how the couple went about the task.
They didn’t type their letter, print off 20 copies and post them through letterboxes. Instead, they guaranteed it would stand out by handwriting each one. This “effort bias” increased the chances of a response.
Making an effort demonstrates your appreciation
The story demonstrates how the effort you put into specific communications correlates to the perceived value attributed to it by the recipient.
That’s why we believe advisers/planners can do better than emails and phone calls when they thank a client for making a referral/recommendation.
Here’s what we recommend instead.
When you receive the referral/recommendation
The adviser/planner should send a thank you card in the post.
Crucially, the card should be high-quality and handwritten (along with the envelope) by the adviser/planner, never someone else.
Sure, picking up the phone or sending an email is quicker and more efficient but you won’t benefit from the effects of input or effort bias. The act of buying the card, writing a personalised note and sending it is a much more powerful way to show appreciation to a client.
When the referral/recommendation converts into a client
The adviser/planner should send a personalised gift to the client. The value of the gift is less important than the personalisation which, if you get it right, harnesses the power of input and effort bias.
Again, it would be easy to send a bottle of champagne or a hamper as many firms do, but they’ll never demonstrate appreciation like a personalised gift will.
Sure, handwritten cards and personalised gifts take more time but, when you’re trying to harness the power of input and effort bias, that’s really rather the point!
Of course, these are only two tactics in what should be a comprehensive referral and recommendation strategy based on client education and appreciation. That’s exactly what The Yardstick Recommendation Package will deliver for your business.
If you’d like to learn more, email phil@theyardstickagency.co.uk or call 0115 8965 300 and we’ll arrange a chat.
