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I recently debunked the myth that client testimonials are compliance nightmares. That’s one of a dozen excuses we hear from financial advisors who have yet to implement this powerful marketing tool. Two other intertwined myths are that testimonials aren’t great sales generators and that they’re too braggadocious.
Testimonials aren’t about self-promotion – they’re about trust. Testimonials provide an opportunity for clients to share their authentic experiences working with an advisor, particularly regarding what they’ve found most impactful. When a testimonial is shared in a compliant manner, it remains entirely in the client’s own words – free from advisor influence – making it one of the most transparent and credible marketing tools available.
So yes, a client will hopefully be sharing highly positive messages about their work with an advisor, but that’s the beauty of it – it’s their voice, not the advisor’s. This distinction is critical. A glowing client testimonial isn’t boasting; it’s validation.
What’s truly more braggadocious than a testimonial? An advertisement filled with self-praise. When an advisor creates an ad about their services, they control the messaging, which inherently makes it feel more self-serving. A testimonial, on the other hand, is an independent stamp of approval – a genuine endorsement that resonates far beyond any marketing copy an advisor could write themselves.
How testimonials can change the game for advisors
In a world where even before we purchase cleaning products on Amazon or professional services online we check reviews to determine suitability, client reviews have a massive impact. As people look for a new physician, they are often searching for client reviews and certainly wouldn’t select a doctor who received two stars. Similarly, consumers preparing to hire an advisor are performing this same exercise to hear what clients themselves have to say about their experience.
Testimonials are a quick and efficient method to kick off or kick into hyperdrive the “know, like, trust” feelings from a prospect. They allow prospects to quickly gauge whether an advisor is the right fit, helping them move from casual peruser to engaged prospect – and ultimately to raving fan. That’s because humans are wired to relate to others, and when a prospect reads a testimonial from someone they connect with, they’re far more likely to take the next step.
To that effect, 92% of customers check testimonials in advance of beginning a business relationship, and 72% of clients trust a firm more once they’ve read testimonials. Advisors who opt not to establish a testimonial marketing strategy will soon find themselves in the same place as the online product that lacks positive reviews – accumulating dust on a shelf.
In addition to their effectiveness in converting prospects to become clients, testimonials improve search engine optimization (SEO), increase social-proof, and complement other compelling content, which serve to increase an advisor’s prospect pipeline.
As the role of advisors has evolved to encompass financial life planning, prospective clients want to be able to understand and relate to that advisor, which is where testimonials come in. Testimonials provide a direct window into the real client experience, helping prospects envision what it’s like to work with an advisor before they even schedule a meeting.
Brian Thorp is CEO of Wealthtender.
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Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
