A very good friend and his wife recently came into town and asked me for a restaurant recommendation in the Santa Cruz area. I am always happy to help acquaintances with these “tough” problems.

I asked their food preference, and without hesitation he answered Italian. I immediately had the perfect place in mind. You see, the restaurant I recommended (refer) makes their own pasta and sauces from scratch, serves incredible bread and offers reasonably priced and nice wines. I knew this welcoming eatery, nestled in a cool location, would deliver a high-quality Santa Cruz food experience.

Please note, nowhere in the restaurant would you find a sign asking for recommendations or be handed a business card stating “the biggest compliment you can give me is a referral to your friends.”

Instead, here’s why the restaurant was recommended:

• This referral is both selfish and selfless. It was about me helping my friend find something they’d enjoy. It is not about the restaurant receiving a benefit. Like many of you reading this, it brings me joy when friends go to a place that I recommend and subsequently have a great time! It makes ME feel good to help them.
• I specifically knew the “value” or experience that this restaurant could bring to my friends. Read the description again: incredible bread, reasonably priced and good wines, friendly service in a cool location.

When the stakes really matter:

When it comes to referring an advisor, doctor or other trusted professional, the risks are much higher for the referrer to get it right. To receive an endorsement, every interaction must be in the best interest of the person getting the recommendation, not you or the referee.

Based on my observations of thousands of advisors over 30 years, here are nine actionable behaviors that make the best advisors referable:

1. Great advisors listen intently and are on the hunt for the problem(s) to solve: They pay close attention to a referral’s needs, concerns and feedback and show genuine interest in understanding their requirements. This is about the advisor identifying, diagnosing and understanding the problems first and foremost.
2. Great advisors have prompt and thorough responses: Replying to inquiries, issues or requests quickly and demonstrating attentiveness to clients’ time and concerns is not only good business, these actions will also help the referee know that their referral is promptly being served. I think of this quote often in these situations: “If it’s important, treat it with importance.”
3. Do just a bit more: The top advisors have a process to go above and beyond expectations to exceed client satisfaction. Sometimes it’s offering additional unexpected assistance or providing extra value. This can be as simple as sharing a “I was thinking about you when I saw this” note.

4. The top advisor’s value and experience is obvious: They have a documented, consistent and thorough process on the solutions they provide. All clients are aware of it. The best advisors utilize this document each quarter sharing “services provided” to help jog memory on not only what they are currently doing, but what other solutions may be needed in the future.

   This documentation makes it easy for any client to refer because they will implicitly know what the firm can do for them (read, their value!) and solutions provided.

5. Referable advisors are empathetic and compassionate: They often can feel the client’s situation from a personal perspective. A great client quote from an often-referred advisor said, “They called me as soon as they heard about my cancer diagnosis. I don’t have to stress about my financial situation, and I know they have my family’s back.”

   Other language they use may sound like this:

   • “I’m here for you.”
   • “What do you need right now?”
   • “I’m happy to listen any time.”
   • “I’m sorry you are going through this.”
   • “That sounds really challenging.”
   • “I can see how that would be difficult.”
6. The best advisors are transparent and inclusive in their thinking and solutions: They are open and honest and constantly advising (not facilitating) in all interactions. They clearly and compassionately give the diagnosis (problem to solve) and set clear expectations on the plan to solve these problems. They act like your favorite doctor would act when serving you.
7. When something goes wrong, great advisors quickly solve the problem and take ownership: Addressing client concerns and resolving issues efficiently and effectively, they often turn a negative experience into a positive one. A great quote from Randall Stutman says, “It’s not the incident that defines you, but the response.”
8. Great advisors are forward thinking: Actively seeking and utilizing client feedback to improve solutions, services and overall client experience. Asking, “What’s one thing I can do better in the future?” allows for precise information to help you improve.
9. Growth by referrals is obvious to existing clients: A notable behavior within the highest referred advisors is they make it clear to all clients that their business is based upon referrals of their existing clients. Some advisors revert to referral-only growth.

By incorporating these behaviors into your approach, your business can create a culture of service, recognizable value, foster client loyalty and lead to more referrals through positive word-of-mouth. Buckingham’s experienced team has the tools, insight and resources to grow your high-quality referrals. To learn how we may assist you, please schedule an appointment with a Divisional Manager.

For informational and educational purposes only and should not be construed as specific investment, accounting, legal, or tax advice. Neither the Securities and Exchange Commission (SEC) nor any other federal or state agency has approved, determined the accuracy, or confirmed the adequacy of this presentation. R-23-6248

Alex Potts

President

Alex Potts sits on the board of directors for Buckingham Wealth Partners, while also serving as president of Buckingham Strategic Partners. As president, he focuses on forward-looking strategies, vision and growth for our Turnkey Asset Management Platform (TAMP) business. He considers it his mission to help individuals and families reach their financial goals.