News for March 2009

Maximize Referrals From Your Insurance Agency

In today’s marketplace there are only two ways most of customers search for new insurance. The first tactic is doing research on the internet, the other tactic is asking their associates. You can educate yourself about website advertising in other articles of mine; for this article I am going to concentrate on the best strategies for getting referrals from your existing customer base.

Develop a referral program

If you do not already have a program in your agency, you have to produce one ASAP. I am referring to a structured way of paying back clients who refer new clients to you. State laws dictate the amount you may spend on one client for referrals. Whether it is with gift cards, prizes, or a check, my advice is to pay your clients as much and often as possible within the legal limits. You will not find a better return on your money than through referrals. I write this because referred clients are absolutely the best type of new customer. They purchase easier because you likely already have their confidence, and since many clients will not send poor risks to your agency, they are regularly better for your expense ratio. don’t be frugal when it comes to sending new clients; think you sell better when there is more money at stake?

Make sure every customer is aware of your rewards.

Unless each client in your agency is aware that you pay for referrals and what you pay, you are not maximizing your efforts. Make a point in your agency to point out the referral program with each and every helpful client communication you have. In your agency, put together a very visible display that shows the benefits for referred customers so no one could come through the office without noticing it. Stuff information about your reward program in every bit of mail you send your clients. Update the signature in your email system to advertise your reward program in every message you send. Make time during every policy discussion and when you write new insurance policies to explain the referral program. Don’t forget to focus on the benefits to them for referrals..

Educate your customers to send business.

It might sound weird, but you must to train your clients how to refer your agency. I have constantly said that an educated customer is the best client and this certainly is true for referring new business. When you spend the time to educate your clients you are not only building your connection with them, you are also providing the ability to instruct others about insurance and discuss the advantages of your company. While you detect an insurance gap, request the customer to think of other people they know that might have the same liability. People are constantly eager to sound smart to their friends. Additionally, when customers understand about all the products and services you provide, not only do you open the possibility for cross-selling but your customers are more able to spot needs in other folks they know and refer your services. Provide your customers specific ideas about referrals like, “who else in your street would we be able to help?”

Furnish Clients the Tools to Recommend Your Insurance Agency

Many times the only thing stopping your existing customers from referring your insurance agency is not having your contact information close at hand. Encourage every customer to store your phone number into their cellular phone so they can get in touch with you in the course of an accident. This works excellent because it develops the impression that you will be there for them if they need you, and it lets them to carry around your phone number all the time. I also propose creating tiny tags with the policy number, your phone number, and the local police and fire phone numbers for them to add to their keychain. You can do the same on a wallet sized card. The key is giving customers a way to have your contact information all the time without them knowing it.

Implement Your Insurance Referral Plan

The major misstep agency owners make about referral marketing is failing to execute. If you say you are going to remind every customer about referrals ensure your staff and you do. If a customer says who referred them, never forget to send a thank you card. If you articulate the strategy beginning to end from the start, you will have an easier time executing.

And never overlook the most imperative rule for referrals - Ask!

Edited: March 23rd, 2009

Stop Doing Insurance Agent Marketing Mistakes Right Now.

Nothing is more essential to being a productive insurance company than marketing.

That’s a fact.

If you are outstanding at advertising you may do well, but if you cannot promote your business you will absolutely fail. During several years in the insurance industry, I observed several advertising errors. Save yourself by avoiding the most dangerous four.

The first marketing error is failing to plan.

I am always dumbfounded at the number of agents who do not script their marketing plan at the beginning of the year. Many agents only set apart a certain amount of revenue and try to spread it evenly through the year. Reacting to sales representatives that get hold of you is not productive. You need to set aside time to create a plan for marketing your agency. Isolate your prime clients and allocate your moneybased on the different ways to market that you know will reach them. If your ideal clients are retired people you may use a more old-fashioned approach. If you areaiming for prospects with high net worth, you are going to want to invest most of your funds on online marketing.

The second marketing mistake is not tracking the success of assorted marketing methods.

Marketing is always evolving, and what worked yesterday may not reach target customers now. You need to always try new things and if you never record the results you will never know what to do. Record how all new customersof yours heard about your agency and put more resources toward the methods that yeild results, and cut back on paying for the ones that fail.

The third advertising error is working with antiquated advertising.

I know, the former techniques of branding your name no longer work. Agentsof old felt that if they paid for marketing all around town, potential clients will recall their name when they shop for insurance and contact the agency. That does not work any more. In the present, someone could see your ad in the paper daily for fifteen years still go to the internet to compare insurance. The intent now needs to be the first second or third agency they find when they are searching for insurance. The place to market is online.

The fourth agent error is not using your existing customers

Some individuals don’t go on the internet for insurance, they ask their friends. That is why it is all-important that you make a referral program where you reward customers for referring their friends. Ensure each client knows about it and that they always have your phone number. Do this by convincing them to list your phone number into their cell phone in case they get in an accident.

In order to be successful at advertising, you must be prepared to evolve. Properly proportioning your budget from the onset, using new strategies like using the internet, working with your current customers, and tracking your failures will help you ward off all these errors and help you be so much more successful.

Edited: March 6th, 2009