Produce and Execute a Solid Insurance Agency Referral Strategy

Produce and Execute a Solid Insurance Agency Referral Strategy

Currently there are only a couple ways most of Americans find a new insurance agent. The first approach is doing research on the internet, the other method is asking their contacts. You can find more information about website advertising in other articles of mine; for this article I am going to focus on the best practices for obtaining referrals from your existing client base.

Develop a referral program

If you do not already have a program in your agency, you should produce one immediately. I am referring to a planned way of rewarding clients who refer new clients to your agency. State laws dictate the amount you may spend on a consumer for referring an insurance agency. Whether it is with gift cards, prizes, or a check, my advice is to pay your clients as much as you can within the legal limits. You will not find a better return on your money than through referrals. I say this because referrals are surely the best type of new client. They purchase easier because you likely already have their respect, and since many people will not refer bad clients to your company, they are likely better for your expense ratio. Never be stingy when it comes to rewarding customers for referring business; don't you sell better when there is more commission at stake?

Make sure each customer understands your rewards.

Unless each customer within your book of business realizes that you pay for referred business and what you offer, you are not getting the most from it. Never neglect to refer to the reward program with every single helpful client communication you have. In your agency, make a very prominent display that shows the benefits for referrals so no one could come through the office without seeing it. Write about your referral program in every bit of mail you send your customers. Update the signature in your email program to make clear your referral program in all the messages you send. Make time during every policy review and when you write new insurance policies to discuss the referral program. The important thing to remember when you talk to clients about your program is to emphasize the benefits to them if they send referrals.

Coach your clients to refer your agency.

I know it sounds funny, but you must to coach your clientele to give referrals. I have continually alleged that an educated client is the best client and this certainly seems true for referrals. When you make the time to educate your clients you are not only building your connection with them, you are also providing the tools to teach others about insurance and discuss the advantages of your agency. After you discover an insurance gap, ask the client to think of other people they know that could have the same liability. People are constantly eager to sound brainy to their friends. Additionally, when clients comprehend about all the products and services you offer, not only do you open the likelihood for cross-selling but your customers are more able to recognize needs in other folks they know and refer your services. Provide your clients specific suggestions about referrals like, ìwho else in your place of business would we be able to assist?

Offer Clients the Tools to Send Business to Your Agency

Frequently the only thing preventing your existing customers from referring your insurance agency is not having your website information close at hand. Persuade every customer to input your phone number into their cellular phone so they can speak to you in the event of an accident. This works fantastic because it creates the impression that your agency will be there for them if they need you, and it lets them to hold on to your phone number all the time. I also recommend creating little tags with their policy information, your phone number, and the local emergency phone numbers for them to add to their key chain. You might do the same on a card that fits in a wallet. The trick is giving clients a way to carry along your contact information at all times without them being aware of it.

Implement Your Insurance Agency Referral Plan

The largest mistake agency owners make about a referral strategy is failure to execute. If you plan you are going to remind every client about referrals ensure your staff and you do. If a customer mentions who referred them, never forget to send a thank you card. If you articulate the strategy beginning to end from the beginning, you will have an easier time following through.

By Jay VanDamme