Referrals happen when your customers tell people they know about your products and services. More often than not, a solid referral means a lifetime customer. But what are some of the reasons why referrals are great for insurance agents?
#1: It Means Your Clients Are Happy
You keep up with your clientele, providing superb customer service and a quality product with help along the way. Sooner or later, they are going to want to tell someone about their experience.
Not every happy client spreads the word, but with the right motivation, they will be thrilled to. And if your customers are willing to, that means they are happy.
#2: It’s Cost-Effective
Marketing and lead generation are two of the most essential factors of successful sales. You can pour lots of money into these tactics, and not always see an equal or better return. While “traditional” marketing is still essential, putting resources into referrals is likely going to be significantly more cost-effective.
We mentioned that, with an incentive, customers are happy to refer their friends and family—this incentive can be a prize sweepstake, discount for you and the referral, etc. Spending $200 on a prize for potential leads and lifelong clients is cost-effective money well spent.
#3: Produces Higher-Quality Leads
Not all leads will pan out. While they may appear interested in your product, when the time comes, they may not go through with a purchase. This is a risk with all leads, but far less likely with a referred lead. Why? They already know your product is good—their best friend, mom, cousin, etc. already told them so. They know what they want, and know that you have it.
#4: Helps Identify Other Leads
When your clientbase grows from referrals, you may start to notice certain trends, i.e. the places they work, the places they live, the cars they drive, etc. When you see these connections, you know who else to target. If your clients are referring people who work blue-collar jobs, chances are you and your product appeal to blue-collar workers. Referrals not only bring in new clientele, but help identify ways you can earn more leads alongside your referrals.
#5: Helps Focus Your Business
When someone refers another person to you, they are likely also referring them to a specific product or insurance policy you sell. If you notice that a majority of your referrals are buying a certain policy, you can adjust your business model to meet demands and, once again, target a specific, interested audience. Nailing down a primary source of revenue promises some security for returning clients years to come.
Learn About Insurance Referrals and More from Western Marketing
Earning referrals can be tough, but reflectives a strong salesperson. Western Marketing wants to help set you up for success by giving you the training, tools, and resources necessary for more sales and, yes, more referrals. To learn more, give us a call at 800-852-7152, or email firstname.lastname@example.org.