Referrals are one of the most powerful ways to grow your independent insurance agency. If your customers are happy with your service, you might wonder why they aren’t referring more people to you.
Many agents take the wrong approach by directly asking for referrals, adding a “refer me” button in their email signature, or offering gift cards as an incentive. However, these methods often fall flat because customers don’t always know who among their friends is currently shopping for insurance. Instead of relying on ineffective strategies, here are four proven ways to encourage high-quality referrals from your customers.
Identify Your Promoters
Many of your customers are willing to recommend you, but you need to find out who they are. A simple survey, such as a Net Promoter Score® (NPS) survey, can help determine which clients are most likely to recommend your agency to others. Once you identify your biggest promoters, encourage them to leave a review and remind them that you’re available for their friends and family whenever they need insurance.
Show Appreciation to Referral Sources
When a customer refers a new client to you, take the time to thank them. A handwritten thank-you card or a thoughtful message shows appreciation and increases the chances they will continue to refer others. If you neglect to acknowledge referrals, your clients may assume you didn’t notice or don’t care, making them less likely to refer people in the future.
When a prospect requests a quote, ask how they heard about your agency. If they mention a referral, let them know you plan to thank that person. This small but meaningful gesture reinforces that you value word-of-mouth recommendations.
Send Personalized Handwritten Cards
A handwritten card is a simple yet effective way to leave a lasting impression. Clients who receive a personalized welcome card are much more likely to refer friends and family to your agency. In fact, sending welcome cards can make clients up to nine times more likely to leave a positive Google review.
Consider sending cards for birthdays, anniversaries, or special milestones to strengthen your client relationships. The holiday season is also a great time to stand out—while their inbox fills with promotional emails, a physical holiday card can leave a memorable impact.
Make Communication Easy
Providing multiple ways for prospects to contact you removes barriers to doing business. Some people prefer email, while others like phone calls, texts, or web chat. Ensuring your independent insurance agency is accessible through various channels, such as Google Messages and Facebook Messenger, makes it easier for potential clients to reach out, increasing the likelihood of securing new business and earning referrals.
By implementing these strategies, you can create a referral system that feels natural and rewarding for your clients, leading to steady business growth through word-of-mouth recommendations.
AAI has been driving success for independent agencies since 2004. Our unique network provides a business model for a captive insurance agency to transition to the independent world; or a platform for an existing independent agency to increase revenue, and grow your business bigger, faster, and more efficiently. Learn more here.