The world may be getting more high tech every day, but consumers are still old-fashioned when it comes to referring their favorite businesses and agencies. According to BrightLocal’s 2016 local consumer review survey, 68% of those surveyed were more likely to recommend a business via word of mouth than any other method.
That’s great news for independent agencies working within a tight budget because word of mouth referrals don’t have to cost a dime. To make the most out of this natural tendency to evangelize on behalf of our favorite brands, use these 5 simple steps to increase your insurance agency’s referrals.
You’ve probably noticed that some insurance agents are just better at persuading prospects to become clients. They’re natural-born influencers, and their word goes a long way.
Likewise, some of your clients will have more influence than others. While you should treat each client as a potential referrer, it’s a good idea to identify those referrers who have the most sway over public opinion. One influential referral source can net an agency hundreds of new leads.
When you’re looking around for key influencers, don’t forget to consider complementary service providers. If you provide health-related insurance, partner with a local physical therapist or doctor’s office to increase your referrals. If you offer home insurance, team up with a successful realtor. Forging ties with other influential business owners can be a boon for an independent insurance agency.
We’re more inclined to brag about the people we care about. That’s why Facebook feeds are so often filled with stories about adorable nieces taking their first steps and best friends getting married. If you want to boost referrals, build personal connections with clients and referral sources.
Of course, you can’t wait until the moment you’re ready to ask for a referral to build a relationship. It’s an ongoing process. Showing up when your clients or business associates are in a moment of need (or celebration) shows that you care, which builds trust and intimacy.
Some tools like Refer.com, an AgenciesOnline partner, make it easier than ever for insurance agents to show up in a glowing post on Facebook later on. Refer gives agents easy-to-share digital cards that happy clients can quickly post across their favorite social networks.
According to the same BrightLocal survey, 7 out of 10 consumers will leave a review if they’re asked. In fact, asking is the totally logical but often forgotten key to a successful referral program. At the moment when your client is happiest with you, ask for them to share their experience.
Help your clients and associates make effective referrals by giving them directions. Direct them regarding when and where to offer referrals. If you’ve built a relationship, you probably know a few details about your client. Are they in a church group? A business association? Do they attend the monthly Chamber of Commerce breakfast? Specify where their referral might go the farthest and you’ll both have greater success.
While you’re asking questions, why not ask how you can help your clients and associates make better referrals on their behalf? Take a business card or two and actually share it with clients who may need the exact services offered by your referral partner. Be a model of effective referrals and your partners will be even more eager to sing your praises.
Finally, make it worth your referrers’ efforts. One local hairdresser offers her new clients five referral cards at the end of a happy styling session. The card gives the referred clients a discount, and the referrer gets a discount each time one of her referrals comes in and presents the card. She’s been highly successful in building her business this way, and it’s an idea that agents could play with.
Ask yourself: what can I offer my clients in exchange for a referral? It doesn’t have to be a pricey item, but it should be something that your clients value: a fancy coffee from a local shop, which also ingratiates you with a local shopkeeper, or entry into a contest will each work and generate excitement.
How are you building your independent insurance agency’s referral program?