As October approaches, it’s the perfect time to start thinking about your 2025 business plan. One area that should be a key focus is your branch referral program. Here are three reasons why it’s essential to prioritize this in 2025:
By expanding your referral program, you can significantly boost both AUM and revenue, again supporting your business goals.
A well-documented referral program is a powerful tool for recruiting new advisors, adding even more value to the program.
For advisors who want to grow their business, acquiring new clients is critical. This can be achieved by focusing on existing clients—capturing more “wallet share”—and securing new client referrals. Both approaches are recommended for all financial advisors.
For those working within financial institutions, another effective way to gain new clients is through branch referrals. Both strategies require the implementation of specific tactics. Let’s focus on the Branch Referral strategy.
Now is the ideal time to assess the branch referral program’s performance and set goals for 2025. Key questions to consider include:
According to a July 2024 report by the Kehrer Group titled “Branch Referral Flow Stabilizes, but Remains Low”, the average financial advisor working with branches generated between 129–150 referrals. How do your numbers compare?
Document the referral program
Include qualifiers for paid referrals and clearly outline the referral fee structure.
Set measurable goals
Establish specific referral targets for both branches and employees. Incorporating these goals into performance plans can elevate commitment.
Ensure top-down communication
Work closely with senior management to make referrals a consistent part of institutional conversations.
Build trusted relationships
Gain buy-in and support by fostering strong relationships, especially at the executive and board level.
Create a branch rotation for coaching
Keep training simple, focusing on identifying opportunities to refer.
Schedule one-on-one meetings with branch managers
Use a structured agenda for these meetings to stay on track.
Engage all new employees
From day one, ensure they understand their role in the referral process.
Clarify roles and responsibilities
Define expectations for branch employees, branch managers, and advisors within the referral program.
Automate tracking systems
Track referrals, kept appointments, new clients, and assets under management.
Segment your data
Distinguish between assets gathered from within the institution versus external sources to gain deeper insights.
Track cross-referrals
Measure the success of referrals that are reciprocated back to the institution.
Automate communication
Keep your referrers updated throughout each step of the referral process.
Create data-driven reports
Reports should track key metrics and help advisors understand their performance ratios, providing a foundation for improvement.
Automate report distribution
Ensure branch managers and executives receive regular updates on referral performance.
A strong referral program has a far-reaching impact across the entire institution. Training employees to identify referral opportunities not only benefits the investment team but can also uncover needs in areas like mortgages, lending products, and business solutions.
When advisors establish themselves as a valuable resource, they will build stronger relationships, which are essential for long-term success.