Referral marketing is a great way to get new clients if you have been in the insurance industry for at least six month or have 50 clients.
You should set up a system that will encourage your clients to refer you many people. This will allow you to maximize your marketing dollars.
Referring clients is a great way to get new clients. Your acquisition costs will be a fraction of the cost of acquiring them through any other means.
You may have heard referral marketing as one of the best ways to generate new business. You probably didn’t know how to create a system that generates truckloads of referrals regularly and consistently, but I doubt it.
Experts say that you should seek out referrals from professionals such as accountants, bankers and realtors before speaking to your clients. According to some experts, clients don’t want referrals.
You know what? They are absolutely correct. Even if you ask, satisfied clients won’t usually give you referrals. Referrals will only be given by your loyal clients and advocates.
You’ll see that although accountants, lawyers, realtors, and bankers can help you find qualified referrals, it is your current clients, especially your advocates, who can be the most valuable.
It’s interesting that, although agents say they get most of their business through referrals, there is no system in place for them to do so.
I find it a mystery why financial advisors and agents don’t have a system in place to refer clients on a regular basis, even though they know that referral marketing is very profitable.
Pay close attention
To get clients to refer you unlimitedly, it is important to provide exceptional service to them every year. You’ll get more referrals if you go above and beyond to please your clients.
Many agents don’t get enough referrals from clients they already know.
Although some agents send birthday cards to clients, the majority of agents only communicate with clients at renewal times (when their clients want more money). They are not known for their standard of service and therefore receive very few or none referrals.
If you are willing to go above and beyond for your clients, they will refer you tons of people if you ask them.
These are the Main Reasons Clients Will Refer You Many People:
Your clients will be heroes to their friends by telling their friends all about you and letting their friends benefit from your superior products and services. It is a great feeling to hear friends say, “Thanks for referring such an and such person (YOU), helping my family preserve our valuable assets, dreams, and future.”
Second, clients will return favors if you go above and beyond to help them.
Your clients will enjoy sharing your success stories with others.
The problem is that while your clients might already be referring others to you, many of them won’t do so unless you ask.
You’re right. Just as you must inform your clients about the importance of insurance coverage for their families and assets, so you must also educate them about the benefits of referring family members, friends, and neighbors to you.
Clients who are extremely satisfied may refer a few people to you. If you ask them for recommendations, they will likely give you five, ten or even twenty times as many referrals.
Agents have asked me questions such as “I don’t understand it.” I provide outstanding customer service and great products. Yet, I rarely get referrals. Please, give me your advice.
“Have your clients asked you for referrals?” I asked.
After a few seconds, they silently said “No.” They then said, “No.”
Even if your clients have received great service and products, they won’t be able to refer you to others. They won’t tell anyone about you unless they ask for referrals.
The same applies to you. Ask your clients for referrals if you want them to refer you many people.
If you are still not getting referrals from your clients, or even enough, it is likely that you aren’t doing it correctly. This is an important fact to remember:
Referrals are a common problem for agents who ask for referrals. Clients find it too difficult to give them referrals.
Agents often ask for referrals using the following:
“Do you know of anyone who could benefit from my product? Or…
“I get paid in two ways. I get paid by the commissions that I earn on the policies I sell and the referrals that my clients send to me. Is there anyone you know who could benefit from my product?
You’re likely to get the same answer if you ask a client any of these questions. However, I will let you know if I do.
How often do clients call these agents to ask for referrals?
They don’t usually.
You can ask your clients to say, “Does anyone know someone who could benefit from my product/service?” You’re making them work too hard.
They are being made to think too much. They are often too focused on thinking, which means they need to work.
The question is “Do you know anyone who could benefit from my product? This is a closed-ended, yes-or-no type of question. The simplest answer is “No.”
This is just too much work for them because they are forced to think of everyone they know who could come up with a name. They just reply “No”
Make it as easy as possible for your clients to refer you!
It doesn’t matter if you ask clients for referrals by phone, in person or in writing. You must make it easy for them to do so. You need to take them by the arm and tell them exactly what type of people you want to refer.
Example: Say, “Does anyone know someone who could benefit from my product? say…
“Whom do know of someone who might be able to benefit the same outstanding product or service as you are getting from me? A family member, a sibling, a cousin. An uncle. A friend. A neighbor.
This question is a great way to make it easy for your clients to name the companies. This is an open-ended, non-binding question that cannot be answered with either a “yes” answer or a “no”. They must give you a name.
Another example: If you target business owners with between five and ten employees, annual sales of $1,000,000 and above, ask your clients “Whom do your clients know who might be able to benefit my product or service?” say…
“Whom do I know who owns a small business with five-ten employees and has annual sales of $1,000,000? A doctor, an accountant, lawyer, pharmacist, doctor, dentist, pharmacist, doctor, contractor, landscaper, consultant, restaurant owner, etc?”
They’ll immediately think of an accountant that they know if you mention the word “accountant”. They’ll also picture a restaurant owner if you mention “accountant.”
Another example: Instead asking “Do you know anyone at your chamber of commerce that may be able benefit from my product/service?” Ask: “Whom are you sitting next to at your chamber business meeting who may be able benefit from my product?
As you can see, it’s possible to not think of any person if you were asked the first question. If they ask you the second question, however, you will be able to name names. The second question allows them to see who is sitting to their left, right, in front, and behind them at chamber of commerce meetings.
Your clients are being forced to think hard about a name because the first question is vague. They don’t want the effort required to come up with a name, so they just tell you “No, I cannot think of anyone right at this moment.”
We think in pictures as humans. It is easier for clients to see people if you are clear and specific about who you want to refer to.
You now know that the key to getting referrals from clients is to make it easy for them to refer you. Implementing an effective system in your practice or agency will help you get more referrals. You’ll see a significant increase in your profits.