Insurance Referral: Triple Your Sales With 7 Super Tricks
According to a case study by GfK Marketing Intelligence Review, referred customers are 25% more profitable than the customers acquired by other means. Is your insurance referral system bringing you more clients? Silence is not louder than words in the insurance industry. In fact, if your clients are not talking about you with their friends and family, you’re not doing a good job as their insurance agent. While there are several ways to drive insurance sales and generate interactive marketing, basic referrals are the great driving force in generating leads.
Just like any marketing campaign, there are tips and tricks to adapt a method in your own way and generate desired interest. Here are ten tried and tested ways that can help you stay ahead of the game. Read on until the end for a secret bonus industry tip.
In this blog
- Don’t Shy Away from Asking Your Clients for Insurance Referral
- Reward Your Clients for Referring You
- Define and Find Your Target Customers What does this mean for agents?
- Dedicate a Space on Your Social Media for Your Referrers What does this mean for Allstate insureds?
- Invest in Marketing Automation for Insurance Referral Where does insurance go from here?
- Educate Your Clients About Your Products
- Invest in Content Marketing for Insurance ReferralA new hope: Innovative business models, agent-centric processes & top-of-the-line tech
- Key Takeaway
Insurance Referral Tip #1: Don’t Shy Away from Asking Your Clients for referral
A lot of agents think that asking for referrals from their clients is unnecessary or bothersome. An experienced insurance agent would say that is a rookie mistake. While big companies spend a lot of money on ads and campaigns, you are an independent agent without thousands of dollars at your disposal to advertise yourself. Thus, word of mouth may be your best bet at attracting customers. Also, keep in mind that listening sends a strong message that tells customers that this relationship will be more about their needs than ours.
Replace “I am asking my clients for too much and I should be ashamed of bothering them for a favor that may not be useful to me at all” with “I am confident in my services and products, so there is no harm in me asking my satisfied clients to refer me to their circle.”
According to research from ResarchGate, referral marketing results in a superior advertisement as the marketing is carried out by friends and family. It also provides access to new customers that wouldn’t;t have been possible through traditional marketing.
Insurance Referral Tip #2: Reward Your Clients for Referring You
If you still don’t feel confident in reaching out to your customers for referrals, you can implement a ‘Referral Rewards System’ in your network. When new clients come to you through an old client’s recommendation, make sure to reward your referrer for their help. It doesn’t have to be too extravagant. For example, flowers, a gift card, or a nice gift basket can go far in showing your appreciation.
Insurance Referral Tip #3: Define and Find Your Target Customers
Most people do not like making referrals because they’re not sure if their friends and family would find the services useful or worth it. To make sure you are marketing to the right crowd, first and foremost, you need to recognize who your core customers are and what type of customers you are trying to attract.
Research and analyze your products and the people they attract. For instance, you could be the only independent agent in Ohio selling mobile home insurance while it is in transit. Thus, you can specifically ask your clients to refer your services to their friends who own mobile homes.
Insurance Referral Tip #4: Dedicate a Space on Your Social Media for Your Referrers
Gratefulness goes a long way when you are working directly with your clients on a daily basis. In addition to implementing a referral rewards program, you can also dedicate a space on your Facebook page or website where you give shout-outs to your referrers (with their consent of course). People love to be seen, heard, and appreciated. Customer retention 101—It is always a good idea to stroke the egos of your clients to keep them coming back. The presence of insurance agents on social media is more powerful than you might think.
Insurance Referral Tip #5: Invest in Marketing Automation
As iterated above, big companies have made much use of marketing automation for their business. As an independent business owner, you can also get affordable marketing automation tools to help you save time.
Email marketing is a great way to generate leads, but it may not be a viable option if you’re giving hours of your day into preparing copies after copies to personally send out to people. Instead, get an email marketing tool that automates newsletters and sends them out to interested parties.
These tools will help you save time and generate leads while you make connections and widen your customer pool. You can also use these tools to send out free and helpful content to your clients effectively and consistently. Most clients appreciate freebies. That way, you gain goodwill. You can ask these clients for insurance referrals in exchange for your quality content.
Insurance Referral Tip #6: Educate Your Clients About Your Products
Many times, your clients only look to you as the guy who sold them car insurance and nothing more. Meanwhile, you carry more than 30 different products and bundles. In this case, it can be harder for you to get referrals since your clients aren’t aware of all you offer.
Print out attractive brochures, email your clients about your portfolio, and tell them about the products you carry so that they know to come to you or refer you for any insurance needs.
While you may think that harping to your customers may turn them away, it is an effective form of marketing. Instead of thinking “I am being repetitive and bothering my clients”, think of it as “Next time my clients buy a car or a friend complains about their expensive premiums, they will think of me as their solution.”
Insurance Referral Tip #7: Invest in Content Marketing for Insurance Referral
Believe it or not, this is the age of targeted content marketing. With freelance SEO experts and copywriters working to prepare content per your needs, there really isn’t an excuse as to why your social media and website are lacking in content. A good body of quality content can drive more traffic and attention to your products and services. It also builds trust and rapport with your clients, which then convinces them to send their friends and family your way.
Bonus Tip: Shape Your Reputation
Having a reliable and trustworthy reputation is a must for independent insurance agents. How can you expect people to give referrals if they don’t see you as an upstanding citizen? You need to be able to give excellent customer service, great products, and after-sales servicing.
Even if you’ve known someone for a while, when they step into your office for the first time, they are seeing you in a different capacity than they are used to. Remember that while selling insurance for you is a daily affair, it is probably the first time they are speaking to you as an insurance agent. Make a great first impression and follow through with your promises. Satisfied clients are always happy to refer you to their loved ones.
Bonus Tip: Make a Space for Yourself in the Industry
The insurance industry is a crowded profession. If you want to be successful as an independent insurance agent, you need to brand yourself as better, faster, and more reliable than your competition. If you want great insurance referrals, then you better shape up.
- Recognize your unique selling points and core values.
- Recognize your preferred audience and strategize accordingly.
- Market yourself so that your values and uniqueness are apparent to the audience.
- Instate good and lasting relationships with your clients by providing excellent customer service.
- Remind your clients time and again about your relationship and why they should stick with you—think holiday cards, thank you cards, or better yet, exclusive loyalty discounts.
If you are actively working to stand out from the crowd, your clients are likely to notice and make referrals.
Bonus Tip: Get the Right Referral
As the saying goes, like attracts like. Working with troublesome clients can drain you and leave you with complaints and ungrateful reviews. Do you really want to work with more people like that?
Rather, pay attention to clients who are on time with their payments, are appreciative, and who make it a priority to secure their property. Target people who are interested in knowing more about how to better protect their assets. Chances are, their family and friends harbor the same interests. Success is for people who work smart, not just hard!
Bonus Tip: Join a Networking Group
Keep your friends close, but meet your competition once a month and brainstorm insurance referral strategies together. There are endless marketing referral groups that meet up once or twice a month over drinks to practice and brainstorm. These meetings can give you opportunities to share knowledge, tips, and even give each other referrals. Additionally, you can practice your pitch with professionals in the same industry and take note of good ideas.
Hard work is always a first priority in the insurance industry, but it’s also important to work smartly. These useful tips will help serve your clients better so they are willing to vouch for you. Regardless of what others may say about referrals, they are a great method of generating substantial leads for your company.
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