How to Avoid 5 Mistakes With Client Testimonials
For testimonials to “work,” clients have to see them and they have to believe them. That’s why your Google Business Profile is the most impactful home for client testimonials: 9 in 10 searches start on Google and 63% of consumers check Google reviews before visiting a business.
More than 150,000 people search “financial advisor” on Google every month, but they can’t work with you if they can’t find you. Generating compliant Google reviews is the quickest way to ensure that your business ranks near the top in local search and is much cheaper than trying to win on highly competitive search engine marketing keywords.
If your compliance team isn’t yet comfortable with Google reviews, you can still make effective use of them on your website. It’s fine to have one or two of them placed in strategic locations, but for both marketing and compliance reasons, it’s best to also have a dedicated section that displays all the (appropriate) testimonials you have received. Providing a mix of feedback from clients makes the content more believable to prospects, more attractive to search engines and helps demonstrate to regulators that you aren’t cherry-picking.
4. Not including the appropriate disclosures in advertisements.
If you are using testimonials in advertisements, such as in an email campaign or on your website, you must also include three clear and prominent disclosures: if the provider of the testimonial is a current client, if they have been compensated and if there are any material conflicts of interest.
Keep in mind that “clear and prominent” means within the four corners of the advertisement. Placing a footnote at the bottom of your website likely won’t pass that test.
5. Not taking advantage of the benefits of the new Marketing Rule.
Despite the SEC Marketing Rule recently turning two, fewer than 10% of firms are using testimonials, with most citing confusion about the rule as the primary reason. In a recent conversation, a former SEC examiner expressed surprise that RIAs were not adopting newly approved marketing techniques more rapidly. In his words, “they were designed to be used.”
They are beneficial for firms and prospects alike, he explained.
Andrew Johnson is co-founder and CEO of Testimonial iQ, which helps advisors leverage new marketing tools to grow their online presence by collecting and sharing compliant testimonials.
