Most Advisors grow their businesses predominantly through existing Client referrals – it usually accounts for approximately 70% of new Clients. Advisors often boast about how much new business they get from their current Clients, thinking that this number is impressive and should be celebrated. In reality, only 30% of new Clients should come from existing Client referrals.
Anything greater than that means you’re not properly utilizing centers of influence (COIs). It also means that you’re passively growing your business, when you should actively be searching out new business. If your primary means of growing your business is to sit around and wait for others to spread the word about why people should do business with you, you’re doing it wrong.
Statistically, consumers are two times more likely to share their bad customer service experiences than they are to talk about positive experiences.1 On average, happy customers tell nine people about their experiences with a company while unhappy customers, on average, tell 16.2 Additionally, for every customer who complains, there are 26 customers who don’t say anything.
You should always be marketing and promoting your business and services. In his book “The Game of Numbers”, Nick Murray preaches that you should never stop prospecting. When it comes to growing your business, prospecting is your sweat equity. People and relationships are our business. Clients will come and Clients will go - it is your responsibility to make sure you never stop actively looking for new Clients.