Increase Loyalty and Attract New Clients
Many advisors and agents have already discovered that a key ingredient in their efforts to increase client loyalty and attract new clients is by hosting client-appreciation events. These events increase loyalty by accomplishing two things:
- They expand your “business friendships” with your clients.
- When clients who like and trust you get together with other clients who like and trust you, they all leave liking and trusting you even more. Total loyalty!
Then, when guests at these events see the type of relationships you have with your clients, they want that for themselves. Here are three real-life examples of advisors using these events to shield their clients from the competition and add to their client base.
The “Magic Bus”
Don Zerlin (Ohio) likes to mix a little referral business with pleasure. Once a year, Don pulls together a simple, but special, trip for his clients. He charters a luxury motor coach, and they all head off to Chicago or Toronto for a Broadway-style play, gourmet meal, and a stay at a nice hotel. All his clients pay for the trip. Don, or his staff, merely handle the arrangements with the hotel, theater, and bus company. He gets his clients a great deal.
Now, here’s the kicker. He urges his clients to invite other couples that are not his clients. Of the 20 couples that go each year, 10 are clients, and 10 are prospects. So for about 36 hours, Don is the grand host to prospects who fit his profile. They get to know each other and like each other. They see how he relates to his existing clients and they like it. Don says he’s batting about 90% or better in converting these prospects into clients. Invariably, before the trip is over, they quietly lean over to Don and say, “We have a situation we’d like your advice on. Do you have some time to visit with us in the near future?” Does Don have time? You bet he does.
Hit the Slopes
David Vaughn (New England) is a top-producing rep who also happens to be a great skier. David organizes a ski junket every year that has catapulted his practice to the top.
David’s clients pay for the junket, but in a creative way. Price of admission? Five referrals to David. If the referral prospect goes on the junket, that’s worth three referrals.
On one recent trip, David netted over 1,000 referrals. He needed to get an associate involved to handle all the business. David says, “Getting your clients involved in your practice and your life shields them against the competition.”
It’s Party Time!
One master at the client appreciation event is Jeff Chaddock (Ohio).
Every year Jeff hosts an incredible party for his clients. He gets a tent set up on his property (5 acres), brings in a band and a comedian. The attendee list has grown over 300 (and continues to grow). It’s the event of the season in Dayton. Jeff says that many of his colleagues don’t understand why he spends so much money on these parties. Jeff told me that these parties are a powerful investment in his practice. First, the parties solidify his relationships with his clients. Second, these parties stimulate a significant number of referrals.
All things being equal, people do business with their business friends. All things being not-so-equal, people still do business with their business friends. In my referral system I like to talk about the life-time value of our clients. The life-time value of a client is not just the business you can do with them over a lifetime, it’s also who they can introduce you to over a lifetime. One way to ensure those introductions is to create as many business friendships as possible. Appreciating your clients for their business does three things: 1) It helps you build a business friendship; 2) It shields your clients against the competition; and 3) It generates referrals; directly – when prospects come to your events, and indirectly – as you become more referable.
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