News for June 2009

Develop a Solid Insurance Agency Referral Program.

Currently there are only two ways a majority of clients search for new insurance. The first approach is going online, the other option is asking their friends. You can find more information about website advertising in my other articles; for this piece of writing I am going to concentrate on the best ways of earning referrals from your existing customer base.

Develop a Structured Referral Plan

If you don’t have an existing referral plan, you have to develop one as soon as possible. This means an established way of paying back clients who refer new business to your agency. Your state limits the amount you may spend on one customer for referring an insurance agency. Whether it is with gift cards, gas cards, or money, my advice is to pay your clients as much and often as possible within the limits of the law. It is the best possible way to spend marketing money. I say this because referred business are without a doubt the best type of new client. They are easier to close because you often already have their respect, and since the majority of people will not send poor risks to your company, they are often better for your profitability. don’t be cheap when it comes to paying clients for referrals; do you think you sell better when your commissions are higher?

Make sure every customer understands your rewards.

Unless every single client within your clientele realizes that you reward referred customers and what you offer, you are not going to see the best results. Never forget to refer to the referral program with each and every helpful client communication you have. In your office, create a very visible display that explains the rewards available for referred clients so no one could come through the office without seeing it. Include information about your reward program in every outgoing piece of mail you send your clients. Update the signature in your email program to explain your referral system in every message you send. Spend time during every insurance discussion and when you write every new policy to explain the referral program. Remember to emphasize the benefits to them of referring business..

Instruct your clientele to send business.

It might sound weird, but you must to instruct your clients how to refer your agency. I have continually alleged that an educated customer is the best client and this certainly is true for referring new business. When you make the time to educate your clients you are not only strengthening your connection with them, you are also giving them the tools to teach others about insurance and discuss the advantages of your agency. While you detect an insurance gap, request the customer to think of others they know that could have the same liability. People are always animated to sound bright to their acquaintances. Additionally, when customers comprehend about all the products and services you give, not only do you initiate the opportunity for cross-sales but your clients are better able to spot needs in other individuals they know and refer your office. Offer your clients specific suggestions about referrals like, “who else in your church group would we be able to assist?”

Furnish Clients the Tools to Refer Your Agency

Frequently the only thing preventing your current customers from referring associates is not possessing your contact information on hand. Encourage every client to enter your phone number into their phone so they can speak to you in the course of an accident. This works fantastic because it creates the impression that your agency will be there for them if they need help, and it lets them to hold on to your phone number everywhere. I also advocate creating little tags with the policy information, your phone number, and the local police and fire phone numbers for them to put on their keys. You could do the same on a wallet sized card. The key is giving clients a way to carry along your contact information all the time without them being aware of it.

Implement Your Insurance Agency Referral Reward Plan

The leading misstep agency owners make about a referral strategy is failure to follow through. If you pronounce you are going to remind every client about referring new business make sure your staff and you do. If a customer mentions who referred them, never forget to mail a thank you card. If you articulate the strategy beginning to end at the start, you will have an easier time following through.

And do not overlook the most imperative rule for referrals - Ask!

Edited: June 21st, 2009