Referrals have many hidden advantages
A good referral program is one of the most important ways for independent insurance agencies & brokerages to grow their business and nurture their clients. Let’s take a look at some of the top reasons you should be pursuing referrals.
When a client delivers a referral, they become a better client
Robert Cialdini spent a lot of time documenting and writing about this interesting psychological phenomenon – when someone reaffirms their decision to do business with you (by referring a friend or family member to your services for example) the referring client becomes even more committed to your agency. Not only that, by reaching out to them and telling them that their help mattered to you and your business, you deepen the relationship and remind them that they’re ‘not just a customer’.
Referrals have a fantastic closing rate
Referrals come to you already ‘warmed up’ by their friends or family. A lot of people don’t like feeling ‘sold to’, but when you’re talking to a referral, you’re talking to someone that is not only seeking the kinds of services you offer, but who has had someone they trust inform them that you’re a good source for what they’re looking for.
Referrals are highly likely to become some of your best customers
In 2014 Bain & Company conducted a study about loyalty in the insurance industry with a focus on P&C consumers, and some of what they uncovered is downright fascinating. Not only are referrals highly likely to become loyal, long-term customers that buy more policies, they’re also likely to become the type of customers that deliver the most referrals! Think about how powerful that is: every time you close a referral, they’re more likely to become a long-term client, that delivers referrals that will likely become long-term clients who will deliver referrals who… well, you get the point.
Referrals are a barometer for the health of your customer relationships
A well-run referral program is a great way to keep your finger on the pulse of your relationships with your customers. If you’re asking for referrals, but you’re not receiving an appropriate number for the size of your agency – that could be a sign of deeper issues with how your agency or brokerage is nurturing customer relationships.
Referral programs create experiences worth sharing
Referral programs are a fun way to engage your customers. They’re really their own kind of game – and when that game has winners, you should seize that opportunity! Every time you hand out a prize or declare a winner, see if they’re willing to swing by for a photo. Announce it. Share that experience on your website. Better yet, share it on social media. You have just created and documented a fun experience! Be proud. Have fun. Show your community that you aren’t just another company. You’re a local business full of real people that get excited when their clients are happy!
It’s easier than ever to run a good referral program
Thanks to modern technology like Agency Revolution’s Attract™, running a good referral program has never been so easy! Our suite of tools makes automating email messages, or sharing on social media and your website an effortless experience. Not only that, Attract™ even comes with a ready-made referral rewards campaign that you can use as-is, or modify to fit your agency or brokerage personality!
You have every reason to build a referral program. Referrals have a high closing rate and are likely to become some of your best clients. A rewards program is a fun way to show appreciation to your customers and create great experiences that are worth sharing online. And these days, running a great referral campaign is easier than it has ever been!