Client referrals for advisers: Why they’re your most valuable leads

Sarena Harwood
Oct 20
4 min read

When I recently reviewed the marketing data for an accountancy firm, something stood out.

The highest-value leads didn’t come from ads or social media, they came from existing clients taking on more services.

Next in line in second position was client referrals.

And only after that came brand-new leads.

That doesn’t mean new leads aren’t important. But it shows how powerful existing relationships can be when you nurture them properly. When a happy client refers someone new, and that new client later expands their services with you, the value compounds.

As a freelance marketer in Surrey, I work with professional service firms, from accountants to financial advisers, to help them improve client retention and referral marketing. Over time, I’ve found that firms who focus on engagement and client experience generate the most consistent, high-quality leads.

The value behind client referrals for advisers and firms

Client referrals are the most genuine form of marketing there is. They come from trust. When a client refers you, they’re putting their own reputation on the line, and that means the referred lead starts their journey already halfway convinced.

From my experience in the data, I’ve seen across professional service firms:

Existing clients who buy additional services are the most profitable group.
Referred clients are typically second in overall value, they are often more loyal and quicker to convert.
Brand-new leads can be more expensive to acquire and require longer nurturing to build trust. They are also inconsistent to get a steady lead flow.

The conclusion: If you build strong relationships with existing clients, you’ll naturally increase referrals, and that helps to build a steady, high-value growth.

Client referrals best practices for advisers and firms

To make the most of referrals without feeling “salesy”? Below are some best practices for advisers and firms that want to grow their referral pipeline sustainably.

Make it easy for clients to refer you

Many happy clients would love to refer you, they just need a little encouragement and an easy way to do it.

Things to try:

Including a friendly reminder in your client newsletter or email footer (“Know someone who could benefit from our services? Feel free to share our details.”)
Having a simple referral form or email template clients can forward.
Following up at key client milestones with a “thank you” and soft referral prompt.
For regulated industries like financial advice, you can keep it compliant by focusing on introductions rather than incentives.

Recognise and thank your referrers

While financial rewards may not always be appropriate, a sincere thank you goes a long way.

That could be a handwritten note, a personal email, or even highlighting the referrer’s business (with permission).

The key is to make the client feel valued and appreciated, that their referral didn’t go unnoticed.

Strengthen client engagement to increase referrals

The firms with the strongest referral networks all have one thing in common: engaged clients.

Clients who feel understood, supported, and communicated with are far more likely to recommend you to others.

Simple engagement practices can make a big difference:

Regular updates and newsletters
Client review meetings that genuinely add value
Sharing insights and resources that help clients achieve their goals

This is where client retention and referrals come together.

When you strengthen your client relationships, referrals happen naturally as a by product of good service.

If you’d like support developing a retention and engagement strategy for your firm, explore my Client Engagement & Retention Service

Track where referrals come from

One of the most overlooked parts of referral marketing is tracking.

When you know where your referrals come from, you can identify your most loyal advocates and what triggers those recommendations.

You don’t need complex software, even a spreadsheet or CRM column noting “referral source” helps. Over time, this shows:

Which clients refer most often
What services attract the most referrals
The conversion rate of referral leads

Tracking also helps you thank clients more personally, and refine your strategy to focus on what’s working.

How client retention fuels referrals

Think of retention and referrals as two halves of the same growth engine.

If you only focus on new leads, you’re constantly starting from zero.

But when you build lasting relationships and keep clients engaged, they don’t just stay, they advocate for you.

That means:

More repeat business
More cross-service opportunities
More referrals
Lower marketing costs overall

Firms that invest in retention often find their referral rate rises naturally because happy clients become brand ambassadors.

If you want to build that kind of growth cycle, my Client Engagement & Retention Service is designed to help.

I work with advisers, accountants, and consultants to create structured retention strategies that turn clients into long-term relationships and relationships into referrals.

Practical steps to build a referral-ready firm

Here’s how you can start implementing referral best practices straight away:

Audit your client base: Identify your top 10 clients and note who’s referred others before.
Create a referral-friendly process: Have a consistent way to thank and track referrals.
Enhance client communication: Keep clients engaged between formal touchpoints.
Promote your values: Clients refer businesses they’re proud to be associated with.
Showcase success stories: Share client wins (with permission) to demonstrate results and trust.

Over time, this builds a referral culture, where every happy client becomes a potential advocate.

The value of referrals

Referral marketing isn’t about quick wins. It’s about compounding trust and loyalty over time.

When you invest in the client experience, the results multiply:

Clients stay longer.
They refer others.
Those referrals become new long-term clients.
Each one grows the value of your business.

That’s why client referrals are worth more than any lead you’ll ever buy, because they come from relationships, not algorithms.

Ready to strengthen your client relationships and referrals?

If you’d like to attract higher value leads through better client engagement and referrals, I can help.

I’m Sarena, a freelance marketer in Surrey specialising in helping professional service firms, including financial advisers, accountants, and consultants, build sustainable growth through marketing that nurtures, retains, and engages.

Learn more about my Client Engagement & Retention Service

Or get in touch to discuss your marketing goals at hello@marketingwithsarena.co.uk