The New Cold Call

As insurance agents contemplate how to use technology to generate new business, they are inundated with buzz words like “drip marketing,” “online lead generation,” “social media” and “SEO.” The promised payoffs from click-throughs, AdWord campaigns and Facebook certainly beat cold-calling—but that doesn’t mean agents should give up the old ways altogether.

In fact, new technology can facilitate rather than eliminate effective selling strategies of times gone by. In particular, new business tools and methodology make it easier than ever for agents to leverage their existing customer base for referral-based marketing.

Technology has advanced referral marketing from simple incentive-based programs to more targeted and automated processes, producing more leads in less time and for less money. While a personalized hand-written note is an effective way to encourage clients to refer an agent to their friends and family, it’s not the most time-efficient method. Companies like Postable, Thankster and SendOutCards have now reduced that process to the sum of several clicks. These companies continue to perfect handwriting technology to convey heartfelt and personalized messages from agents to their clients.

Not surprisingly, new and innovative technologies can also make the referral process more cost-effective by targeting agents’ most loyal clients. An easy way to identify an agency’s top promoters is using an industry-recognized method called the “net promoter score” (NPS). Developed by Fred Reichheld and used by many of the nation’s top companies, including Apple and Southwest, NPS uses a one-question survey to gauge client loyalty. Agents can now use online services like Survey Monkey, CheckMarket and FluidSurveys to easily import their contact list and send the NPS survey to customers.

For agents who prefer more automation in their referral generation and word-of-mouth buzz for their agency, simpler alternatives are available. Some companies offer automated software, designed as an “all-in-one” referral strategy, that provides pre-written copy, handwritten notes and integration with social media. Other tools automate email and social media marketing by strengthening client relationships.

Methods for automated referral marketing solutions abound—and they enable agents to implement consistent referral strategies with the push of a button.

Carl Maerz is cofounder of Rocket Referrals, a software company founded in Des Moines, Iowa that aims to help insurance agents grow their agency through automated referrals.

SIDEBAR: The Personal Touch

Recent studies show that people trust recommendations from personal relationships seven times more than traditional advertising.

For insurance agents whose business is founded on personal service and strong relationships, the groundwork for referrals already exists. But recent research suggests that in an industry where 83% of satisfied customers report they are willing to recommend services, only 29% actually do.

Referral marketing provides a solution by leveraging technology to convert loyal customers into active referral sources. —C.M.