How to Ask Insurance Clients for Referrals

One of the biggest challenges that independent insurance agents face is gaining new clients. Marketing, branding and advertising campaigns are all effective ways to draw new clients to your business, but they aren’t always the most efficient or inexpensive, either. Many seasoned insurance agents will say that some of the best clients they’ve attracted over the years have come from direct referrals. There are many reasons for this, including the fact that referrals are more organic than other forms of marketing. In addition, referrals typically have a higher rate of conversion and will usually not only stick with you for longer but also spend more with you than other customers you obtain through other means. With all this in mind, gaining more referrals is key to any insurance agent. Here are some ways you can ask insurance clients for referrals.

Create an Official Referral Program

New business initiatives are almost always more effective when you create an official plan for them. The same goes for referral programs. If you’re looking to drive more referrals to your business, create an official program that outlines how you will reward the people who contribute to you gaining new clients. You can create rewards for both the clients that refer other people to you, as well as the other agents who work under you — if you have any working for you. By having a clearly-defined referral program, it’s something that’s much easier to push while you’re dealing with clients. Plus, it gives people an incentive to actually refer clients to you.

Ask for the Right People for Referrals

One often overlooked aspect of referrals is making sure that you’re attracting the right type of client. Remember that when you ask for referrals, you’re essentially empowering people who don’t work for your business to speak about your business. In other words, you are putting your trust in the person who will be talking with their friends, family members and colleagues about your business. If you don’t trust that they’ll convey the value of your business or you as an agent, or that they would refer the wrong type of client to you, then you shouldn’t ask for a referral at all. So, before you ask for referral, make sure that the people you ask it from are the type of client that you want to attract.

Network with Other Business Leaders

Referrals can also come from other business colleagues. A great way to do this is to build relationships that are mutually beneficial with other people in your community. For instance, you might build a solid relationship with a banker who could refer clients to you for their insurance needs. The same could be done with people outside of the financial sector, too, of course. When clients trust someone they do business with, they’re much more inclined to trust that person’s word, too. So, if they are referred by a financial advisor they trust to you, they’re more likely to actually follow through if they have a need. You can build these types of relationships in many ways — by attending local community events, by volunteering, by serving on a local board and by joining various networking groups.

Track the Success of Your Programs

There is immense power in data nowadays, and it’s easier than ever to use information you can glean from data to make informed business decisions. You can do this for every aspect of your business, including your marketing and advertising programs, your social media marketing and even your referral programs. Once you’ve put an official program in place, figure out how you can gather, track and analyze that data. It’s very important that you are able to measure the effectiveness of the program so that you can see not only whether you need to tweak it, but in what ways you need to tweak it. You can break down your referral program into separate buckets based on where the referral came from. Are new clients who are referred from current clients converting at a higher or lower rate than those referred by members of the business community? Are they spending more or less, and staying for longer periods of time? There are many different things that you can track. The important thing is that you define the data points that are important to your program, and assess them. By doing this on both a micro and a macro level, you’ll be better equipped to make your referral program the best it can be.

Discover the Good Life

There are many ways to ask for referrals from clients, and it doesn’t have to be an excruciating process. We understand that all of this information can be overwhelming, but it doesn’t need to be when you have the right support. At Good Life Insurance Associates, our experienced insurance sales associates are here to provide support and training for both new and experienced agents. To learn more about us, remember to explore our business support services. Or, to speak with a member of our team about your journey to becoming an independent agent, contact us today!

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