When you think about cost-effective marketing, you probably think about using email, search engine optimization (SEO), content marketing, social media, and blogging. But you shouldn’t overlook referrals. According to the website, Talkable, a referral program can help you attract high-quality customers, drive increased revenue for your business, and deliver impressive ROI.
In fact, the Talkable article mentions a 2021 Deloitte study that found businesses with referral programs had a 70% higher conversion rate and 69% faster close time on sales.
In addition, as we’ve mentioned before, Nielsen says that 92% of consumers trust referrals from people they know – and they are four times more likely to buy when referred by a friend.
If you work successfully with your clients to deliver a competitive quote, enroll their employees in a group health plan, and save them money in the process, you’re creating an excellent opportunity to turn that happy client into a future referral source.
So, how can you encourage more referrals? Below are five things to keep in mind.
Insurance Agency Referral Program Ideas
1: Constantly solicit feedback.
Throughout the sales process, it’s important to ask your clients for feedback to be sure they’re getting the attention they expect – and to ensure the process is going well. This demonstrates your concern and care for the business owner and employees as you move through the sales process – from quote, presentation, and engagement to enrollment and close.
You might consider a post-sale survey or phone call to seek additional feedback on what worked well – and what, if anything, fell short of your clients’ expectations. This will help make you even more successful in your future sales efforts.
2: Express thanks, and remember timing is important.
At a minimum, send a prompt written thank you note or card to express your post-sale appreciation for each client’s decision to do business with you. You could also consider going bigger. A post-sale thank-you gift is best delivered in person. It expresses your gratitude for your client’s business and sets the stage for your further outreach about potential referrals.
If you built a real connection with your client, you may have learned something during your conversations about the business owner’s or benefits manager’s hobbies or outside interests. Consider whether that information can help you find the right gift. You want something that reflects your diligence in getting to know them and their business. Your gift should be professional and memorable. It should be something that reflects well on you and your agency – and creates a positive, lasting impression. That could help you when you reach out again for a testimonial or referral. Just don’t go overboard.
Remember, you want to ask for referrals after you’ve proven yourself. Your client needs to feel confident that you’ll be able to deliver comparable five-star service to those they refer. If you successfully score a referral, follow up right away. You don’t want to risk a lead going stale because of your delayed action. And, of course, you’ll want to send a thank note for any referrals you receive, too. Or maybe something more – see below.
3: Consider a referral incentive.
In contemplating your referral reward options, you can adopt a “standard” reward like a gift card or gift basket, agency promotional swag (like drinkware, a tote bag, duffel, cooler, or luggage tags), or something like a charging device, USB flash drive, ear buds, or speakers with your agency logo.
Look at your existing client roster to see if one of them might sell a gift card or a gift basket that you can purchase and use to incentivize referrals. You can give your customer some business and build a stronger connection to another client from whom you might seek a referral in the future.
If you add something new to your portfolio in the months or years ahead, you might consider reaching out again to share the news and ask if they know others who might be benefit from your services. If any referrals become clients, be sure to let your client know, so they are aware of your successful outreach and new client relationship.
4: Promote your incentive program to customers.
If you adopt a formal referral program, be sure your customers know about it. You can tout your program in one or more of the following ways:
- promote it on your website and include an option for customers to opt-in while on your site.
- discuss it in your quarterly newsletter (that we hope you have – or launch soon).
- distribute a special referral message to a targeted segment of your customer database.
- use your CRM platform to schedule a similar message three-five weeks after each enrollment.
- include a promotional card about the referral program in your post-enrollment follow up.
5: Track your success.
To ensure the effectiveness of any referral program, it’s important to track all referrals received and all rewards distributed. Software programs designed to help you include Referral Rock, Saasquatch, ReferralCandy, and BuyAPowa.com, to name just a few. Google Analytics and manual tracking via a spreadsheet work well, too. The key is being able to measure your increased customer acquisition, lifetime customer value, and increased brand awareness. What percentage of your referrals are leading to a new sale? What is the total revenue generated by each referral? If your investment isn’t yielding the desired result, some tweaks to your referral program may be warranted.
When you’re just starting out, asking for referrals can be challenging. However, it does get easier over time. When you deliver the service and products your customers want (and, frankly, expect), asking for referrals will become a natural next step in your sales process.
Talk with your W&B representative, too. He or she may be able to suggest other ways to generate referrals, promote your agency, and increase your sales.
If you are not already doing business with us, it’s easy to get started. Fill out our online registration form, or call us today at (800) 869-6989.
