Building your book of business is fundamentally a math problem: Limited by time and opportunities, how many people can you personally persuade?
But what if there were dozens of “yous” out there spreading the gospel of good service and exceptional value? That’s why successful agents focus on generating referrals from existing clients and contacts. Not only do they benefit from a stream of incoming — and usually well-qualified — leads, but it has a logarithmic magic. Because the more referrals you convert to enthusiastic customers, the more you can also get.
Master the Basics
The foundation of robust referrals is simple: Happy customers. Think about the ways a business or service provider has personally made you happy enough to want to spread the word. Perhaps they offered knowledgeable advice, sold you a great product that perfectly fits your needs, or provided quick, thorough follow-up support. Constantly building your product knowledge, keeping up with regulatory changes, going the extra mile investigating coverage options, double-checking your answers, and promptly returning messages are the daily work that’s needed to build referral-worthy trust.
Captivating Communications
In addition to quick callbacks and message replies, create a regular outbound communications program. An e-mail newsletter that contains useful information will keep your name fresh in customers’ minds. Regularly posting sharable content on social media platforms your customers engage with can also help expand referral channels.
Maintaining a database with actionable client information — family members, important dates, likes and dislikes — affords you plenty of reasons to contact them with a personalized message, such as:
“One year in your new home! I hope you’re enjoying it!”
“I see your son’s 16th birthday is almost here. If he’s getting a driver’s license, let’s talk.”
“I saw this article about fly fishing and thought you might appreciate it.”
In addition to email, you could also consider delivering these messages in a handwritten note or card to magnify the impact.
Go Live
Hosting client appreciation events gives you a chance to thank customers, strengthen relationships, and ask for referrals. For example, offer educational workshops for your boat insurance customers if you operate near the coast — or a networking dinner for your business insurance clients — and encourage attendees to bring a plus one. Even a simple holiday open house can generate new leads via customer referrals.
Make It Worth Their While
Offer incentives for referrals, social media reviews, and testimonials — especially video testimonials. Scale the incentive to the effort required: A small gift card for a review or referral, a larger one for a video testimonial and a personalized gift when a referral results in a sale. Add a referral link to your website and make sure the process for clients to refer someone — and get credit for it — is simple, straightforward and rewarding.
Referrals by the Numbers
Track your referral sources so you can lean into what works best. Did a customer appreciation event net you new referrals? Are your personal communications returning the investment in effort you put in? Referral metrics you can track include the conversion rate (the percentage of referrals that result in a sale), customer lifetime value (how much a customer is worth during the time they’re your customer), cost of acquiring a new customer, and your return on the time and money invested.
Enlisting an army of enthusiastic evangelists to sing your praises takes some effort, but it can be one of the most time- and cost-effective ways to build your book of business.
