Serve First, Sell Later Marketing
Serve First, Sell Later Marketing
#27 Why Referrals Don’t Easily Convert Anymore (And What To Do About It)
This episode of Serve First, Sell Later Marketing podcast tackles the challenge about what to do with referrals that are no longer converting into long-term clients in a competitive market. In today's saturated market, that's the reality for many legal and financial professionals. With potential clients swayed by online reviews and the sheer volume of choices, the challenge has intensified.
Sylvia explores the necessity of mastering digital marketing and building a strong online presence as foundational steps to impressing potential clients from their first search. To stand out in this crowded market, it's crucial to specialize. By zeroing in on your niche and clearly communicating a unique value proposition, you set yourself apart from competitors. She shares actionable strategies to meet and exceed modern client expectations, from transparency in pricing to prompt communication. Building trust through social proof and rapid follow-up can make all the difference in converting referrals into long-term clients. Tune in for a comprehensive game plan to enhance your practice and ensure those referrals don't just come in but also stay for the long haul!
Resources mentioned:
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Key Takeaways:
- The modern challenges in converting referrals into clients are understood.
- It is crucial to stand out in a crowded market through niche specialization and a unique value proposition.
- Strategies for building trust with potential clients include optimizing your digital presence and leveraging social proof.
- Managing online reviews and creating an impactful digital footprint are key tips.
- The role of transparency and personalized communication in client relationships is highlighted.
- CRM systems are essential for effective lead management and follow-up strategies.
Chapters:
- (0:00:00) Challenges in Converting Referrals Into Clients
- (0:05:13) Standing Out in the Crowd
- (0:14:58) Building Trust and Converting Referrals
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00:00 - Sylvia (Host)
Hello everyone, and welcome back to episode 27 of the Serve First, sell Later, marketing podcast. I've had a lot of candid conversations with professionals about their practice, and, I have to say, one that stands out for me is this Converting referrals into new clients just isn't as easy as it used to be for a lot of legal and financial professionals, and things have just changed.
02:19
So back in the day, a referral from a trusted colleague or a satisfied client was just a sure thing. You'd follow up, you'd meet with a potential new client and more often than not, they'd sign on the dotted line, and those were certainly the good old days. But now it's a whole different ballgame out there, and I think the marketplace is jam-packed with competition and potential clients are bombarded from all angles with information overload, and so their expectations are through the roof when it comes to service, when it comes to transparency and, of course, value. And in this radically shifted landscape, a simple referral doesn't carry the same weight it once did, and so one of the reasons being is that potential clients have endless options at their fingertips and even though someone has referred you, that referral is still researching you and your competitors online before they even pick up the phone. So if your online presence and reviews don't measure up, you're potentially losing out on business, and I think the hard truth is that referrals are still the bread and butter for many of you and it fuels the growth of your practice. So just having that referral isn't enough anymore. You've got to be prepared to clear a much higher bar to convert referrals into paying clients, and that's what this episode is all about. We're going to break down the key reasons why converting referrals has become such a challenge in recent years, from the overcrowded market to skyrocketing client expectations. I'm going to lay it all out there and, more importantly, I'll equip you with some strategies to overcome these modern hurdles, and you'll learn about how to leverage digital marketing, how to build trust through social proof and really just how to build unshakable trust and credibility. And my hope is that by the end of this episode and credibility, and my hope is that by the end of this episode, you'll have a game plan for transforming those hard-earned referrals into long-term clients and really taking your practice to the next level. So let's get started.
04:37
So let's start by addressing the elephant in the room the sheer saturation of professionals in the marketplace. I'm sure you can all relate. There are many professionals vying for the same clients than ever before, and it's a cutthroat environment out there and competition can be fierce. So I want you to think about it for a moment. How many lawyers or financial professionals can you name off the top of your head in your local area alone? Probably more than you can count on one hand. Right, and that's just the tip of the iceberg.
05:13
With so many options available, potential clients are really feeling overwhelmed with choices. It's almost like being a kid in a candy store Everything looks appealing, but it's hard to decide which treat to pick. And that's not even factoring in the constant barrage of information and marketing messages that these potential clients are facing on a daily basis. So between social media, email, radio, tv, they're being inundated with noise from every direction, and it's almost like trying to have a conversation in a crowded, noisy bar. So you're practically shouting at the top of your lungs, but your message is still getting drowned out by the number of voices around you, and so, in this environment, simply having a referral from a trusted source just isn't enough, and so that's what I want to address.
06:07
I want to do a deeper dive here, because your potential client is still going to be skeptical and they're going to do their due diligence and, as I mentioned, they're going to research you, they're going to research your firm, your competitors, online. They're going to read reviews, they're going to compare credentials and they're going to weigh their options carefully. So if your online presence is lacking, if your messaging maybe doesn't resonate, if you don't stand out from the crowd, you're going to lose that potential client to a competitor who simply does. So how do you break through the noise and how do you differentiate yourself in this market? And I think it starts with finding your niche and really owning it.
06:53
So many professionals tend to shy away from claiming their niche, and they're just afraid. They're afraid that they will turn others away. But I think here lies in the problem Would you rather be a generalist fighting for scraps in an oversaturated market, or do you want to be a specialist who becomes the go-to expert in your specific area? And so the latter is going to be much more appealing to potential clients who really value expertise and experience. Let's say, for example, you're a divorce attorney. Instead of being just a divorce attorney, you could position yourself as a specialist in high net worth divorces or maybe divorces involving complex business assets. So instantly, when you brand yourself as that, what you're doing is you've narrowed your focus and you've made yourself more attractive to a specific subset of potential clients.
07:53
And another strategy is to identify and communicate your unique value proposition. What sets you apart from the competition? Is it your innovative approach? Is it your commitment to client service? Is it your extensive experience in a particular area of law or finance? I want you to find that special niche that makes you truly unique and make sure that it's front and center in all of your marketing and messaging efforts. So by carving out your niche and clearly articulating your value proposition, you'll be able to cut through the noise and really stand out in a crowded market, and when that referral comes in, the potential client will already have a compelling reason to choose you over the competition. So I hope this is resonating with you All.
08:47
Right now that we've covered the overcrowded market and the strategies to stand out, I want to talk about another major hurdle or challenge in converting referrals, and that's the ever-increasing expectations of today's clients. So gone are the days when clients would simply take your word for it and blindly trust your expertise. That's just not happening as much as it used to. So these days, clients are savvier, they're more informed and they really demand a higher level of service, a higher level of responsiveness and really a transparency than ever before, and it's like they've all been taking classes and being a demanding consumer. They know what they want and they're not afraid to shop around until they find a professional who can deliver on their expectations. So take service quality, for example.
09:43
Clients today expect nothing short of white glove treatment. They want you to be available at their beck and call, to respond to their emails and calls promptly and to really provide them with regular updates on their case or their financial situation. It's like they're your only client, even though we both know you're juggling a dozen other cases or clients at any given time. And so one misstep, one missed deadline, one unanswered email and you're walking a fine line. They could be off to the next professional who promises to treat them better, and I think a lot of you may have experienced this at one point or another in your career, and I think it's important to acknowledge that. So service quality is super important.
10:33
Clients these days also demand an unprecedented level of transparency, especially when it comes to pricing and fees. This is a big one. Gone are the days when you could just quote a vague retainer fee or hourly rate and just leave it at that. Clients want to know exactly what they're paying for, right down to the last penny. They want detailed breakdowns of commissions, itemized invoices and just a clear understanding of what services are included and what might incur additional charges. It's like they're scrutinizing your fees with a magnifying glass. They're looking for any hint of ambiguity or hidden costs, and if you can't provide that level of transparency upfront, you can bet they will take their business elsewhere, especially to a competitor who's willing to lay it all out on the table no surprises and no hidden fees. So I hope this is resonating with you.
11:40
So how do you meet and exceed these lofty expectations? No-transcript. I want you to be upfront about your processes, your timelines and your fees. Don't make any promises that you can't keep, and don't try to sugarcoat or downplay potential challenges or roadblocks, because clients appreciate honesty and they really appreciate transparency, even if it's not always what they want to hear, and so, when it comes to service quality, go above and beyond. Respond to those emails and calls as promptly as you can, even if it's just to acknowledge the receipt and let them know that you're working on the issue. Provide regular updates, even if there's no major progress to report. It's these little touches that can go a long way in exceeding client expectations and really building that loyalty. And finally, don't be afraid to set boundaries and manage expectations. If a client is being unreasonable or demanding the impossible, have an honest conversation with them, explain your limitations and what you can realistically deliver and just give them the option to adjust their expectations, or really they can just take their business elsewhere, because, at the end of the day, meeting and exceeding client expectations is really all about clear communication, transparency and just delivering on those promises. So if you can do that consistently, you're going to be well on your way to converting more referrals into long-term satisfied clients.
13:32
All right, so let's switch gears here and talk about your online presence and reputation and how that can make or break your ability to convert referrals into paying clients, and sadly, it's really a harsh reality, but one that you really can't afford to ignore. So I want to start with online reviews and ratings. So these days, potential clients they take online reviews seriously. They are scouring sites like Google, yelp, and they're looking for any and every shred of feedback about you and your firm. It's almost like they're hiring a private investigator to do a deep dive into your reputation before even considering to hire you. And let me tell you, one or two negative reviews can be an absolute deal breaker, and it doesn't matter how glowing the referral was or how impressive your credentials are. If a potential client sees a pattern of dissatisfied clients, they're going to see this as a big challenge. But on the flip side, a solid collection of positive reviews and high ratings can be a powerful tool for converting those referrals, and so it's like having a team of satisfied clients that are vouching for you and singing your praises to every potential new client.
14:58
But online reviews they aren't the only factor that you should take into consideration. There's also your overall digital presence, or lack thereof, and this can also make or break your chances of converting those referrals. And this can be a real challenge for a lot of professionals, because in today's world, potential clients are going to Google you before they ever pick up the phone or even step foot in your office, and if your website looks like it was designed in the dial-up era or if you're practically invisible in your search results, you're going to lose out to competitors who have invested in a strong online presence. That's why it's important to invest in search engine optimization and content marketing, because you want to make sure that when potential clients search for the services that you offer, that your website is front and center on that first page of Google results. And once they land on your site, you want to wow them with engaging, informative content that really showcases your expertise and builds that trust factor. So think of it like a digital version of a brochure or marketing materials, but it's infinitely more powerful and really far-reaching.
16:20
And speaking of building trust, I think one of the most effective ways to do that online is through social proof. So you want to leverage client testimonials and success stories to really demonstrate your credibility and your expertise. And these days, potential clients are skeptical of self-promotion and any kind of marketing fluff, because they want to hear from real people who have experienced your services firsthand. So when you can feature video testimonials, maybe written reviews and case studies on your website and social media channels, because it's like having a virtual cheering section of those really happy clients that are vouching for you and your firm. And don't stop at testimonials Be sure to share your successes and your wins as well. So, for example, whether it's a you know landmark legal case or a financial planning strategy that helped a divorcing client achieve these goals, these success stories can be powerful tools for building trust and credibility with potential new clients and, in the end, a strong digital presence and effective use of social proof can be the difference between converting that referral into a paying client or losing them to a competitor who has their online game on point.
17:49
So if this is resonating with you and you feel like you might be losing out on valuable referrals because you're not being visible enough, then I want to personally invite you to book a free strategy call with me and on this call, what we'll do is we'll actually do a deep dive into specific challenges that you're facing in converting these referrals and we will take a look at your current marketing efforts, your online presence and then from there, we'll help you craft a customized game plan to help you rise above the noise. But you do have to take the first step so you can find the link to my calendar in the show notes to book your strategy. Call All right, you can have the best online presence, the most glowing reviews and the most compelling value proposition, but if you drop the ball when it comes to actually nurturing and communicating with potential clients, you might not convert that referral into a client. So let me explain that a little bit further.
18:52
It really all starts with follow-up and responsiveness. So in today's world potential clients they really expect lightning fast responses. They're not just going to sit around and twiddle their thumbs while you take your sweet time getting back to them. So let's take the example that a colleague of yours passes along a hot referral for a really high net worth individual in need of estate planning services and unfortunately you get busy in your daily activities and you delay reaching out. Meanwhile this potential client is getting a little antsy. They're wondering if you're even interested in their business and you know what they're going to do they're going to move on to the next estate planning firm that actually follows up in a timely manner. So it's something as simple as this that needs a lot of attention, super important, and that's why you have to have a system in place for rapid follow-up. So, whether it's a dedicated staff member whose responsibility is to respond to inquiries in a very timely manner, or maybe it's an automated email sequence that kicks in the moment that a new lead comes in, you really want to have something in place. It's not just about the initial follow-up either.
20:12
Consistent personalized communication is key to nurturing those leads and keeping them engaged throughout the entire sales process, so I want you to think about that. Would you rather receive a generic, one-size-fits-all email blast or a very thoughtful personalized message that speaks directly to your unique situation and needs? Potential clients want to feel like they're more than just a number to you, and they want to know that you've taken the time to understand their specific circumstances and that you're tailoring your approach accordingly. So make sure to sprinkle in personal details and references to their particular case. I think that's really important, and you want to remind them of the initial referral source and how you're connected. It's little touches like this that can go a long way in building that rapport and that trust. I think you don't just want to rely on email either. If possible, pick up the phone and have an actual conversation, or maybe send them a handwritten note to show your appreciation for their consideration.
21:20
Of course, all of this personalized communication and follow-up can be a logistical nightmare to manage manually, especially as your pipeline of leads grows, so that's where a robust CRM or customer relationship management system comes into play. So a good CRM will not only help you keep track of your leads and their associated details, but it will also allow you to automate and streamline your communication efforts, so you can set up customized email sequences, you can schedule follow-up tasks and reminders, and you can even track your team's interactions with each lead, all from a centralized platform. So it's almost like having a virtual assistant working around the clock to ensure that no potential clients fall through the cracks. And the best part is that many CRM systems these days can actually integrate with your website and online marketing efforts, really giving you a seamless end-to-end solution for managing the entire client lifecycle. So if you're still relying on spreadsheets and manual processes to manage your leads and client communication, that really might be fine for the meantime if you don't have a lot of leads to manage. But I think as soon as you can't keep track anymore, you know it's time to level up, and so it's time for you to invest in a CRM system that works for you and your firm, and I think you will notice a big difference in how these referral conversion rates improve significantly because there is a follow-up system in place.
22:59
Okay, so I think we all know that it's not enough to just be good at what you do. Potential clients they want to work with professionals that they perceive as true authorities in their respective fields as true authorities in their respective fields, and they want to feel like they're in the hands of professionals who have a deep, comprehensive understanding of the problems that they're facing, and I think that's where educational outreach comes into play. So by positioning yourself and your firm as thought leaders through workshops, through webinars and online resources, you can really help establish a level of credibility and trust that sets you apart from the competition. So let's start with either in-person workshops or webinars, and I think these in-person or online events are like a masterclass in your area of expertise and they really give you a captive audience of potential clients who are hungry for knowledge and who are in the market for your services. So if you're hosting a webinar on estate planning strategies for high net worth individuals, you're not just regurgitating dry technical information. You're really breaking it down into bite-size chunks in a very easy to understand way, using real world examples and case studies to illustrate your points, and, as attendees leave your session, they're not just walking away with an understanding of the problems that they're facing. They're also walking away with a respect and appreciation for you as a thought leader, because they've seen you in action, they've witnessed your command of the material and they've experienced your ability to communicate complex concepts in a really relatable way, and so what that does is it builds trust and it establishes you as the go-to expert in their minds.
25:04
And so, when that referral comes in for estate planning services, who do you think they're going to turn to? Will they turn to that firm that just sent them a generic brochure, or to the one that took the time to educate and empower them? So, of course, there's so many other ways to educate your referrals, and so some of the other ways are through online resources that really showcase your expertise and build that all-important credibility. So I'm talking about things like a blog or an article library on your website covering a wide range of topics and issues that you know are relevant to your ideal target market. So it could include engaging video content like webinars, maybe Q&A sessions or even just short, bite-sized educational videos that break down complex concepts. It can include downloadable resources like white papers, maybe e-books and guides that really provide in-depth information, and so the key here is to position yourself as a trusted professional of information and guidance and not just a service provider. Professional of information and guidance and not just a service provider.
26:17
So when potential clients land on your website or maybe they consume your online content in other places, you want them to walk away thinking, wow, these folks really know their stuff. They're not just trying to sell me something, they're genuinely interested in helping me and educating me, and I think it's that kind of credibility and trust that money can't buy, and it's that credibility and trust that can make all the difference when it comes to converting those hard-earned referrals into loyal clients. So don't just sit back and wait for the business to come to you clients. So don't just sit back and wait for the business to come to you. Get out there, share your knowledge and establish yourself as the authority in your field, and when you receive those referrals, you can be sure that those folks are looking for ways to learn from you first before they buy from you.
27:10
So we did a deep dive here into the changing landscape of converting referrals into clients and really navigating the crowded market, managing those heightened client expectations, enhancing your online presence, nurturing those leads effectively and establishing yourself as that thought leader. And so those challenges they're real, but so are the opportunities for those who are willing to adapt and innovate. So it's clear that referrals alone just don't convert like they used to, and I think a lot of you can relate to this. So we know that the marketplace is saturated and that potential clients are a lot more discerning than ever and competition is just continuing to grow. And I think it's important to remember that a referral is just the starting point of the conversation, and I think it's what you do next that counts. So, by implementing the strategies that we've discussed, you're not just reacting to changes in the market. You're positioning yourself as a leader who thrives in this change.
28:25
So now I want you to take action. Think about what resonated with you most from today's episode. What is one specific step that you can take this week to improve your referral process? Maybe it's refining your online presence or setting up that first educational webinar. Whatever it is, commit to it. So I want to hear from you Share your action steps and the results that you want to achieve by scrolling to the top of the show notes and click on the link that says send us a text message. I'd love to hear from you, and if you're ready for a deeper dive into overcoming your specific challenges, don't hesitate to book a free strategy call with me. The link is in the show notes and I look forward to connecting with you there. Thanks for tuning in with me today and make it a great one.