Train Staff to Keep Referrals Top of Mind

Want to increase agency referrals? The first step is understanding why clients refer you to their friends and family.

Your agency wants more referrals for several reasons—to help others and to drop more coins into your piggy bank. But customers really don’t care about adding mass to your bottom line. They do care about improving the lives of their loved ones. That’s why all communication with customers must focus on the reasons why referring your agency will benefit the people they love—not that they’ll be doing you a favor.

Developing this “mindset” in the heads of your clients requires using language that conveys the significance of referrals for your agency, playing on the emotional reasons why people refer. Your staff can engage your customers in several effective ways—all of which begin right after clients sign up.

First, your staff should send a welcome email explaining how your business values referrals and why they’re so important for growth. Emphasize that growth will enable you to extend your family to include their trusted ones. This will convey the message that your customers refer you often—which means you must be doing something right.

Next, your staff should find a reason to follow up with your customers as often as possible. Each time, express thanks and let them know you are here to help with anything they need. Remind them you’re interested in extending your service to their loved ones. Over time, referring you will become second nature to your best clients.

Interesting content in conjunction with an established “referral mindset” is a powerful way to bring new customers in your door. Consider being a proactive source of education and resources for your clients that they can share with others. The goal is to get your clients to pass the information on to friends and family and inspire the question, “Where did you hear that?” If the audience is at all shopping around for insurance, this is a perfect segue to a referral. You need to find your way into as many conversations around insurance as possible. The more people you reach with gripping and educational content, the more opportunities you create for referrals.

Keep in mind that when it comes to insurance, 87% of buyers turn to friends or colleagues first for referrals—while only about 1 out of every 10 shoppers start with independent research. Referral marketing is not always about asking for recommendations or offering incentives for names—it’s about identifying your loyal customer base and targeting them with specific communication. Focus on finding your best customers and doing that “little extra” to get them to become vocal.

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.