Before initial meetings with financial advisors, more and more prospective clients are first looking to their websites.

As a result, advisors are giving increasing priority to how their websites portray them.  One way that some advisors are looking to add credibility and differentiate them is by adding client testimonials to their sites.

Today's article outlines what makes for an effective testimonial.  Monday's article will script out a low stress way to raise this subject with clients.

There are three keys to effective client testimonials:

1.       the substance of the testimonial

2.       the signature line underneath them

3.       how testimonials are positioned on your site.

What testimonials say

An effective client comment starts with a short headline extracted from the body of the testimonial that summarizes what it says.  Even if a prospect only reads the headline, they will get the essence of the message.

Some sample headlines would include:

"Communicates effectively"

"Feel in safe hands"

"Always quick to respond"

"Really listens"

"Truly understands my situation"

"Always there for me"

"Have a plan in place for the first time"

"Confident I'll hit my goals"

 Beneath this headline are two, three or four sentences that elaborate on the headline.  Note that testimonials do not typically talk about performance; rather they generally talk about the experience of working with an advisor.  That is because investors recognize that short  term performance is outside the advisor's control; as a result, most focus on the experience that an advisor's clients have while working with him or her.

The signature line

To build your credibility, the signature beneath it is more important than the actual content of a testimonial. Quite simply, the more rooted in reality it seems and the more colour you can provide on the client providing the testimonial, the better.

I have seen lots of testimonials that were well written and with persuasive content, all of which was undermined by a signature line underneath the testimonial that said DR.

About a year ago, I had the opportunity to obtain investor reactions to some alternative testimonials. Based on their feedback, here is how they ranked six signature lines, going from the least to the most credible:

1.       DR (universally voted the least credible)

2.       Dan Richards

3.       Dan Richards

Clent since 2004

4.       Dan Richards

Business owner

Client since 2004

5.       Dan Richards

Business Owner

North Toronto

Client since 2004

6.       Dan Richards 

CEO, Video production firm

North Toronto

Client since 2004

Note that as you add more detail, the testimonial seems to have more substance and appears more real. Clearly you have to be sensitive to issues of client confidentiality and ensure that clients are comfortable with their name appearing on your website.  As well, different firms and different regulatory regimes have different rules in terms of what is allowed.  That said, the more detail the better. I have seen effective testimonials that identify the client providing the comment as a partner with a well known law firm or in a senior management role with a public company.

Positioning testimonials on your site

The final element is positioning testimonials on your site.

Here are some tips to get maximum impact:

1.       Start with what you call them; best is "What clients say" or "Client comments", which is client language and more client friendly than testimonials.

2.       Be sure that at least one client comment is prominently featured on your home page, with a link to more comments. Given the effort you have made to secure them, be careful not to bury them.

3.       If you can, divide testimonials into categories.

I recently saw one advisor site that grouped testimonials into "Own a business", "Already retired" and "Planning for retirement". That way, interested prospects could select the category that they fit into and read the testimonials that were relevant to them.

So that is the first step; being clear on what you are looking for in terms of testimonials.  In Monday's article, I will outline how to obtain these client comments in a low stress, low pressure fashion.