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The Brave New World of Client Testimonials: 5 Mistakes Advisors Should Avoid
By Laura Garfield
Think of the last time you tried a new restaurant. Did you read the reviews first?
When you book a VRBO, do you consider what past guests had to say?
The process of checking with others (even if they’re perfect strangers) before we make a decision to buy a product or choose a service has become part of our daily routine. It’s no different when it comes to your prospects choosing a financial advisor.
It’s one thing for you to talk about the benefits you provide. It’s quite another to have a happy person earnestly raving about you. So when it comes to advisor marketing, it’s a wonder more financial advisors aren’t busy collecting quotes from satisfied clients.
Part of the holdup may be the fear of an SEC rule misstep; this has stopped some advisors in their tracks. What’s the right way to select a client for a testimonial? What are you required to disclose about the testimonial? What can the client say about you and your team? The questions abound, and while there are at least five ways you can mess up when you are marketing with client testimonials, the tips below can help you avoid some major mistakes.
Mistake #1: Generalizing
Don’t ask just anyone. Find clients who represent your target audience. Whether you work with a lot of highly compensated Nike execs, women who have gone or are going through divorce, or couples struggling through sandwich generation problems, look for clients your target audience can identify with.
When the team at Franz Tatum Wealth Management started planning to collect client testimonials, they asked Jerry and Robert. Because Franz Tatum specializes in LGBTQ planning, the Palm Springs couple’s story was perfect.
[Watch it here and explore how Franz Tatum Wealth Management used the testimonial on their website.]
Mistake #2: Scripting
Never script answers for your clients. When you script a testimonial, it doesn’t come off as authentic. Instead, prepare good questions. Ask your client about your value as their advisor but also ask questions about their life. Try using the "then-now-how" framework. To start, have them set the scene about their lives before they began working with you (what it was like back “then”). Next, ask them how their lives are different “now.” Finally, ask questions about “how” you helped get them there. Getting specific will help bring the story to life and make it more real. Remember, to get great answers you’ll need to ask great questions.
➔ Did you know 72% of consumers say positive testimonials and reviews increase their trust in a business? (Big Commerce)
Mistake #3: Using it Once
Once you’ve gathered client testimonials, remember to share them broadly. It’s easy to get laser-focused on that great landing page you want to add to your website. But once that page is live, consider what else you can do with the testimonials.
[See how the Granville Investment Group created a collection of testimonials for this landing page.]
You’ll get more mileage out of your clients’ great quotes by planning email campaigns, adding testimonials to print collateral, and creating a social campaign around the content. You can even create a “brag wall” with quotes prominently displayed in your office.
One of the most overlooked (yet effective) things you can do with testimonials is share them with existing clients. This method might seem counterintuitive but there are two reasons why it works so well. First, you are reinforcing for your clients the value you bring to their lives. Second, happy clients will pass along the rave reviews to their own friends and family, garnering great word-of-mouth business for you.
➔ Did you know 90% of consumers surveyed noted they trust recommendations from people they know, while 70% trust consumer opinions posted online? (Nielsen)
Mistake #4: Ignoring the Rules
Why haven’t advisors been clamoring to collect client testimonials since the SEC’s Marketing Rule changed back in 2021? It’s the fear of going first. No one wants to be the advisor slapped with a fine for stepping out of line. Because you work in a highly regulated industry, you are used to operating under a pretty strict set of rules. And nobody wants to end up in a legal battle or facing a hefty fine.
So let’s take a look at what you have to do to create a compliant testimonial:
➔ Get permission. Have your clients sign a release form before you start using their endorsement, or at least keep the email or a written note that they consent.
➔ Feature your clients. Don’t get testimonials from folks who don’t work with you. Also skip relatives of any members of your team.
➔ And while you’re at it, clearly disclose that these people are your clients.
➔ Always ask if you can use their name. Testimonials are more credible when a first and last name is included. If your client is resistant, ask if you can use a first name. You’re allowed to use a testimonial without a name but it’s much less powerful.
➔ Don’t pay them. You must disclose whether the testimonial was paid or not. You’ll create stronger social proof if you don’t pay for the endorsement.
➔ Never use a testimonial that mentions investment performance.
➔ Run it past compliance before you use it.
Mistake #5: Failing to Record
A written quote is great but there’s power in a video. Think of the impact you’ll have when prospects hear and see your clients’ satisfaction. Nothing reaches an audience like a personal video.
➔ Did you know 77% of people who watched a brand’s testimonial video say it has played a part in convincing them to buy their product or service? (Wyzowl)
When the team at Blue Chip Partners started working on testimonials, client Chuck Kessler came to mind. Chuck’s advisor at Blue Chip had been instrumental in helping him access the earnest money and final payment on his Arizona dream home. It would’ve made a great article with some standout quotes but when you see and hear Chuck tell the story, it really comes to life.
[Watch it here and see how Blue Chip Partners incorporated the story on their website.]
Chuck projects confidence in Blue Chip — exactly what you want from a client testimonial. When you’re interviewing a client, be sure to watch for moments when their face lights up. Those moments are what make for a persuasive video.
Getting Started on Social Proof
Ready to demonstrate your planning prowess to prospects? Armed with five mistakes to avoid and some examples of how advisors are using client testimonials, all that’s left is to launch your marketing initiative. When it comes to getting a new prospect to take the first step, the social proof provided by client testimonials can make all the difference.
Laura Garfield is co-founder of Idea Decanter, a video marketing company that creates custom content remotely for financial advisors. Laura’s team plans marketing strategies that get results. Find out more at www.ideadecanter.com or email laura@ideadecanter.com.
image credit: istock.com/matdesign24
