FAQ

9 Easy & Effective Ways to Get More Insurance Referrals | Nectar

When it comes to attracting more clients to your insurance agency, referrals are the most organic and cost-effective form of marketing there is. Many agents agree that referrals are their number one source of new business. Having existing clients recommend you to their friends and family is crucial to your continued success as an insurance agent.

Not only are referrals organic, but they are also much more likely to lead to conversions. they also tend to stay longer and spend more than the customers they acquire through other means. Agents who get regular referrals build more stable businesses with higher income.

Reading: How to get insurance referrals

If you’re not convinced, here are some stats to check out. Referred customers often spend up to 25% more on their initial purchase and are more likely to make repeat purchases in the future. What’s more, the lifetime value of a referred customer is around 16% higher than customers you acquire elsewhere.

While referrals are a great source of business, many agents are uncomfortable asking for them. no one wants to appear aggressive or irritating. the last thing you want to do is annoy your current customers. You might think that providing exceptional service is enough to encourage your customers to spread the word to their friends and family. that may be true in some cases, but it is not always so.

The truth is that people are often more willing to talk about their negative experiences than their positive ones. It’s not that your satisfied customers don’t want to help you. it’s just that they are busy with their own lives. they are not thinking of helping you grow your business. you have to be willing to ask. Read on for tips on how to get more referrals and what you can do if you don’t feel comfortable asking your existing clients for help.

Tips for getting more insurance referrals

To get more clients through referrals, you have to be willing to ask. Here are nine tips that can help make asking questions easier and more effective.

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1. offer a memorable service

Your customers are your most important asset, not only for ongoing sales, but also in terms of marketing. if you can get the word out about you, it’s more valuable than any form of self-promotion you might do.

However, to encourage your customers to tell their friends and family about you, you need to go above and beyond with exceptional and memorable service. no referral program will mean anything to your customers if your service isn’t up to par.

To provide exceptional customer service, consider doing one of the following:

  • Answer all of your customer’s questions honestly and knowledgeably.
  • Respond quickly to requests, phone calls and emails (don’t keep your customers waiting for a response).
  • Go the extra mile and provide your customers with your cell phone number so they can contact you directly. As a bonus, they can share your mobile number with referrals, which makes it much easier for new prospects to reach you.
  • follow up with your customers during and after the sales process.
  • exceed your customers’ expectations. loyal customers are the ones most likely to advocate for your business and provide referrals.
  • When you provide consistent, top-notch service to your customers, they’re much more likely to recommend you to others they know, especially if you ask.

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    2. train other producers to provide a great service

    You may not be the only one selling at your agency. If you have sub-producers working for you, you need to make sure they can provide the same level of customer service as you.

    This is true whether those producers are focused on sales, service, or both. they must be prepared to exceed customer expectations at any stage of the process so that there is no drop in customer experience. If you and your team consistently reach that level, your clients will be eager to tell others about your agency.

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    3. take advantage of a list of products

    If you don’t already have one, now is the time to create a comprehensive product list that describes everything you sell. put that list on your website or refer your customers to it. go further by guiding them through it. it’s a simple and effective way to let your customers know what you have to offer, and it can help with cross-selling.

    but that’s not all. Your customers may not be shopping for home, auto, or life insurance when they purchase your particular policy, but they may know other people who need those products. if you take the time to share all of your services, they’ll know who to send their friend or family member for their insurance needs: you!

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    4. choose a good time

    They say timing is everything. this is certainly the case when it comes to asking for insurance referrals. Of course, what you ask for and how you ask for it is vital. but knowing when to ask is just as important.

    so when should you ask for references? Start by making sure you know when not to ask. for example, never ask for a reference during billing or when a customer is in the initial stages of filing a claim. You also may not want to ask for a referral right after you failed to keep a promise you made to your client. After all, you wouldn’t ask your boss for a raise right after failing on an important project.

    Instead, try to time your requests appropriately. wait until you know your customer is feeling upbeat and happy with your service. if they tell you what a great job you did, how happy they are, or how much they love your service, that’s a green light to ask for a referral. When your customer is expressing satisfaction, seize the opportunity. If they’re happy with what you’ve done for them, ask them if they’d be willing to recommend someone else they know who could benefit from what you have to offer.

    One thing to keep in mind: You can certainly ask customers for referrals via email or phone call. however, the best time to do this is when you are face to face. research has shown that people are 34 times more likely to accept an application in person than one made by email.

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    5. track and reward referrals

    If you’re working with a team of producers, it can be helpful to create a system that creates a little healthy competition for referrals. To do that, you can track how many referrals each producer generates, along with how many of those referrals actually convert into customers.

    With that information, you can track the conversion rates of each producer’s referrals. Look for fun ways to reward producers who excel in this area or anyone who improves their referral total or conversion rate each quarter.

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    6. set up a rewards program

    People love free stuff, so implementing some incentives could be very effective. Set up a referral program that rewards your current clients when they refer people they know to your agency.

    For each referral, offer a small gift or gift card to your customers. Another option to consider is making a charitable donation to a local nonprofit organization for the referrals you receive. Incentives like these can excite your loyal clients and turn them into brand ambassadors for your agency. just be sure to check state and local laws first. some states have regulations regarding certain types of rewards.

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    7. make it easy for your clients to send you referrals

    The process of sending referrals your way should be easy for your clients. don’t make them look for the right information, make it loud and clear. Put referral links in your email signature, so all they have to do is click the link and fill in the referral information.

    You can also create simple referral cards for your customers. They are similar to a business card, but in addition to your contact information, there is a space for your customer to write their name. they then give that card to their friend or family member, who returns it to them when they meet up with them. when you get the card back, you can reward the original customer for their referral.

    Even if you don’t use them in conjunction with a rewards program, referral cards can make it easier for your current clients to refer others to your agency.‌

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    8. build mutually beneficial relationships

    As an insurance agent, you are part of the local business community. valuing your part in that community can go a long way toward building your long-term success.

    Your business relationships can be mutually beneficial, allowing you to send customers back and forth. think of local real estate agents, car dealers, financial planners, and others whose clients need insurance. likewise, your clients may need your services.

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    Taking the time to build relationships with other local professionals who can recommend you to your clients (and you to them) can be incredibly helpful. carve out time in your schedule to attend networking events, trade shows, and other local opportunities. Carry extra business cards with you so you can hand them out to other business owners you know, and ask for their cards in return. Together, you can help each other grow and prosper.

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    9. let data drive your decisions

    If you’re doing all of the above and generating a steady stream of referrals, great. but do you know how well that referral program is doing? you need a simple system to measure the effectiveness of your program and how you can improve it.

    Start by keeping track of the basics of your current customers. how long do they stay with you? How have your claims experiences been? Have they filed a complaint? Not only can you use this information to better serve that customer, but you can also use it to determine which customers are the happiest (that is, the ones most likely to give you a strong referral).

    When it comes to the referrals themselves, be sure to keep track of which methods work best. What referral sources seem to generate the best leads? Which growers are most successful at tracking? Are the rewards effective? collecting and analyzing data will help ensure you are making the right decisions for your insurance business.

    how to feel more comfortable asking for references

    It’s natural to feel nervous about asking your current clients for referrals. most insurance agents feel a little awkward at first. the best way to feel comfortable is to keep asking. As you continue to practice, asking questions will become more natural.

    Now keep in mind that asking for referrals, even if you’ve provided exceptional customer service and got it right over time, won’t necessarily work right away. But you need to plant that seed in your customer’s mind before you start to see the fruits of your efforts. In other words, the more you introduce the idea of ​​referrals to your customers, the more likely they are to take action.

    Before you start asking customers, however, you need to ask yourself a few questions:

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