Reignite COI Referrals

Industry data shows that most new clients come from client or Center Of Influence (COI) referrals. A 2023 Cerulli Advisor Metrics report¹ showed the highest percentage of new clients that advisors acquired was through client referrals (56.1%). COIs were ranked second, with 14.5% of new clients coming from professional referrals. However, as a 2020 Kitces study² demonstrated, COI referrals win when it comes to the quality of the prospects. The Kitces study showed that COI marketing campaigns produced the highest average revenue per client, more than any other marketing activity. The study suggests this may be because high-net-worth individuals already work with a network of professionals and rely on them to make sound recommendations.

However, advisors have indicated they need help to reignite their professional referral sources post-COVID.

A solution? Implement a consistent and systematic relationship management process with COIs, similar to the one used with clients. Just like with clients, the process should actively reinforce your value proposition and help keep you top of mind when it comes to who your COIs will refer.

The steps below can help build an effective relationship management process:

Step One: Determine Your Sources

Consider local professionals or professionals in your clients’ vicinity and ask them who they work with. Don’t forget to think outside of the box. Not only are Certified Public Accountants (CPAs) and estate attorneys beneficial to work with,but consider the concerns or hobbies of your clients and find professionals who can help. For example, travel experts, golf pros, personal trainers, elder care attorneys, assisted living facility directors.

Concern: Retirees consistently cite healthcare costs as one of their primary financial concerns³

Solution: Host a webinar with a Medicare specialist for clients, family, friends, and COIs. Use financial planning to help ease clients’ minds.

Step Two: Reach Out

Invite your COIs to an informal cup of coffee and, without using names, mention you have mutual clients in the invite. Get to know them like you would a prospective client and inquire about their business, family, sports teams, etc.

Step Three: Follow-up

Follow up with an email and ask if they’re interested in meeting other professionals in the area. Host an informal breakfast round table over coffee and bagels, promising to get the attendees to their desks by 9 AM. Ask for thoughts on the cadence of future meetings (quarterly or three times per year) and suggest topics to discuss. Do not focus the discussion on referrals – this puts people off immediately.

For more ideas and resources for growing and scaling your advisory business, contact your wholesaler today.

FOR ADVISOR USE ONLY. NOT INTENDED FOR CONSUMER SOLICITATION PURPOSES.

Beacon Capital Management, Inc. is an investment adviser registered with the Securities and Exchange Commission. Additional information about Beacon Capital Management is also available on the SEC’s website at www.adviserinfo.sec.gov under CRD number 120641. Beacon Capital Management only transacts business in states where it is properly registered or excluded or exempted from registration requirements.

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments or investment strategies.

Sammons Financial^® is the marketing name for Sammons^® Financial Group, Inc.’s member companies, including Beacon Capital Management^SM. 

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