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Referral Programs Are the Most Effective Method of Prospecting

When it comes to acquiring client prospects, advisors say referral programs are more powerful than social media.

It should come as no surprise that so many advisors rank referral programs as the most important marketing method. After all, advisors say it is the most effective way to acquire new clients. Those programs may focus on seeking referrals from top clients or from trusted professionals such as estate planning attorneys and accountants. Nearly eight in 10 (79%) identify referrals as a very effective method of acquiring new clients, while 19% say it is somewhat effective and only 2% say it’s not effective.

Surprisingly, when it comes to effectiveness in acquiring new prospects, advisors rank referrals above social media by a wide margin. Only 13% of respondents say social media is a very effective way to acquire clients, 56% contend it is somewhat effective, and 31% say it’s not effective at all. Work with local charities and community groups and giving seminars are both ranked more effective in acquiring prospects than social media.