Referrals are the Most Important Aspect to Insurance Agent Growth

In today’s market there are only two ways a majority of Americans find a new insurance agent. The first method is going online, the other tactic is asking their acquaintances. You can find more information about website marketing in other articles I have written; for this piece I am going to focus on the best ways of obtaining referrals from your current customers.

Develop a referral program

If you are operating without a referral plan, you must produce one as soon as possible. This involves an established way of rewarding clients who send new business to your agency. State laws dictate the amount you may spend on a referrer for referrals. Whether it is with gift cards, gas cards, or a check, my advice is to pay your referrers as much as possible within the limits of the law. There is no more effective marketing technique. I say this because referred clients are absolutely the best type of new shopper. They are easier to close because you likely already have their confidence, and since most clients will not refer unsafe individuals to your business, they are frequently better for your profitability. Do not be stingy when it comes to rewarding customers for referring business; do you think you sell more effectively when you are rewarded more from your carriers?

Make sure each customer understands your rewards.

Unless each client within your agency is aware that you reward referrals and what you offer, you are not maximizing your efforts. Never neglect to bring up the reward program with each and every helpful client interaction you have. In your office, create a very visible display that explains the rewards available for referrals so no one could come into the office without seeing it. Provide materials about your referral program in every outgoing piece of mail you send your clients. Revise the signature in your email system to advertise your reward program in every message you send. Make time during every policy review and when you write new insurance policies to discuss the referral program. Make sure you stick to the benefits to them, not to you..

Train your clientele to send business.

I know it sounds funny, but you must to guide your clients how to give refferals. I have always alleged that an educated customer is the best customer and this certainly is true for referrals. When you take the time to talk coverages with your clients you are not only developing your relationship with them, you are also giving them the tools to educate others about insurance and explain the advantages of your agency. While you discover an insurance gap, request the client to think of others they know that may have the same exposure. Customers are constantly animated to sound intelligent to their acquaintances. Also, when clients appreciate about all the products and services you offer, not only do you open the likelihood for cross-sales but your customers are better able to recognize needs in other people they know and refer your office. Provide your clients specific ideas about referrals like, “who else in your softball league would we be able to help out?”

Furnish Customers the Tools to Refer Your Agency

Often the only thing preventing your existing clients from referring your insurance agency is not having your website information on hand. Encourage every customer to input your phone number into their phone so they can get in touch with you in the event of an accident. This works fantastic because it creates the impression that you will be there for them if they need you, and it allows them to hold on to your phone number everywhere. I also suggest creating tiny tags with their policy information, your phone number, and the local police and fire phone numbers for them to put on their keychain. You could do the same on a card that fits in a wallet. The secret is giving clients a way to have your contact information all the time without them being aware of it.

Carry out Your Insurance Referral Reward Program

The leading error agents make about referrals is failure to execute. If you say you plan to remind every client about referring new business make sure your staff and you do. If a customer says who referred them, never forget to send a thank you card. If you put together the strategy beginning to end at the beginning, you will have an easier time doing what you said.

And never forget the most crucial rule for referrals - Ask for them!

Posted: April 14th, 2009 under Uncategorized.