Referral programs are an effective tool to generate more leads. They encourage current clients to recommend your services to their connections, which brings more prospects to your doorstep. A well-managed program can become one of your biggest lead-generation avenues. At AAI, we support and train new insurance agents, helping them set up a successful referral program for their business.
Why Do You Need a Referral Program?
Insurance is a big, recurring investment so people are careful about choosing a product or agent. They do research and look at the reputation of different agents before making contact. Here’s a look at some reasons why you need a successful referral program:
- Power of Word of Mouth - Recommendations from close connections and friends carry more weight than any other form of advertisement or marketing.
- Brand Presence – Referral programs help agencies establish a strong brand presence. You need to have a good brand to draw a client's attention and earn their trust. They will be more likely to promote your agency if it has an appealing image.
- Fostering Referral Programs with Local Businesses – Many insurance agencies set up ties with local businesses like real estate companies, mortgage brokers, real estate lawyers, etc. You can take advantage of this professional network to reach a wider audience.
What Makes a Referral Program Successful?
A referral program is successful if you ensure it has a strong foundation. There are several factors that go into creating a successful referral process that will encourage your current clients to refer your agency to new clients.
- Create an Incentive System – Create a successful incentive system to encourage client referrals. Small denomination gift cards offer a good perk to clients, but more popular is a charitable donation to a community-related organization.
- Make it Easy – Create a user-friendly and efficient rewards system so clients can recommend your services easily.
- Use Technology – Automate and optimize the referral process so all requests go through quickly. Networks like AAI offer software solutions that can help speed it up.
- Identify Profitable Clients – You can identify the most profitable clients and tap into their network. AAI's proprietary dashboard allows you to easily identify this segment of clients.
Contact a reliable insurance industry network if you want to know more about setting up referral programs.