A referral is the act of directing someone to an individual or business for information, help, services or to assist with expert knowledge.
A key factor in accounting firm growth is referrals from happy clients. In fact, most business owners tend to find their current professional services firm through recommendation or referral.
There’s no doubt that a good referral strategy can help accountants connect with and attract more business clients to their services.
In the accounting profession, you’re dealing with people’s finances so there needs to be a high level of trust. A referral or recommendation from a trusted friend or business partner is a good way to build trust with a business owner quite quickly, as you have a mutual connection whom you both respect.
Prospects are also more likely to listen to your existing customers, compared to advertising. Having others tell prospects that you know what you’re doing and have the specific expertise to do the job properly, will reassure potential customers more than you telling the story.
One way to generate word-of-mouth referrals is to concentrate on what you’re good at. Put effort into developing the characteristics you would like to be known for, such as going above and beyond for clients, explaining business and accounting terms in a way that’s easy to understand, being the go-to expert in a particular Xero add-on software or that you focus on a particular industry, and will therefore be able to help them with their industry characteristics, which a general accountant may not.
It pays to be straightforward in business. The simplest way to get more referrals from clients is to ask for them. If your clients don’t know you’re open to more business then they’re less likely to refer.
One of the downsides of word of mouth is that you’re relying on others to send you new business as and when they think of it. And the people they send over to you might not be your ideal clients. If you tell your clients who it is you’d like to work with, they’ll know who to refer and who not to refer. For example, if you work with a niche, be sure to mention your speciality in that field so your clients know about it.
Include a sentence or two in your client communications such as email newsletters and social media to keep this top-of-mind.
Write a note beside your phone or computer to remind you to ask clients for referrals. For example, for your regular client meetings you might come up with a few points to get the conversation started.
Asking for referrals doesn’t have to be a pushy, salesy thing. Simply and sincerely speak to your clients about your desire to grow your business and how you’d like to work with more clients like them.
If you’ve just helped a client reach a business goal and you know they’re particularly happy at the moment, why not reach out and ask for a referral? It’s the perfect time to do so.
Some accountants make it clear from the get-go that their business relies on referrals. You could say something similar to this in your initial meeting. “Our business grows through word-of-mouth so if you’re happy with our services we kindly ask you if there’s anyone in your networks that might also value our help, does that sound ok?”
While not essential, some firms like to set up referral programs with incentives to encourage more referrals. This could include a discount for work referred, a discount for the person who was referred, or a prize for referrals.
Referrals are a two-way street. Who do you give referrals to and how often? If you don’t have work to pass to your clients, it might be useful to showcase them on your website or social media.
Keep a list of people in your network that might be good resources for your clients–and vice versa–so you can easily refer people within your network to each other. The more you get known as a referrer, the more people will think of you when they’re asked for a referral.
Use the Asking clients for Referral template to get started.
Referrals are an effective, inexpensive and efficient way to grow your business. By using a few simple strategies, you can encourage your satisfied clients to send referrals your way. Then, by keeping those referrals happy, they’re likely to spread the word about you to their network, as well, keeping a steady stream of new clients coming to you.