Why Are Referrals Important?
Referrals are among the most valuable tools for any insurance agent. Being recommended to your client’s family members, friends and colleagues makes it a lot more likely for a sale to happen compared to if you were pitching to a complete stranger. The referred family and friends are more likely to give you a chance and hear you out, knowing that you were recommended by someone they know.
Being referred to people similar to your current client also gives you an advantage in tailoring your sales pitches to your new prospects. For example, if a client who just purchased pre-natal insurance is referring you to her colleague who is pregnant as well, it makes it that much easier for you to approach her as you already roughly know her basic needs and which plan to recommend.
Afraid to Ask for Referrals? Try These 5 Moves:
1. Change your mindset
First things first, that negative mindset towards asking for referrals needs to go. Remember – you’re here to help people plan their lives better, and that’s nothing to be awkward about. Be positive and proud about what you’re offering, as it will significantly help to boost your confidence when asking for referrals.
2. Treat your clients well
Before asking your clients for referrals, it goes without saying that you should be a good example to them first. This is an important step to kick-start the referral process. When your clients are happy with you, only then will they be more likely to start thinking of people they know who would benefit from your extraordinary service just like they are.
3. Explain how you’ll handle referrals
People are generally reluctant to provide referrals to insurance agents because they’re afraid of putting their reputation on the line. Who could blame them? They’ll look bad if the agent ends up harassing their family and friends! To gain their trust, make them understand that you will take extra care when it comes to referred leads. Give them peace of mind knowing you most certainly will not be bugging their contacts unnecessarily. – and keep your word.
4. Be specific
It may not be easy for someone to randomly pick a person to refer off the top of their heads. Help them suggest better referrals by thinking about the kind of person you’d like to talk to. Is it a colleague in a similar position? Perhaps a sibling who’s about to get married? Prod them when asking for referrals – asking “Is there someone you work with that would benefit from the same plan you bought?” works much better than the vague “Is there anyone you’d like to recommend to me?”.
5. Start a referral rewards system
If you’re serious about growing your business through referrals, take it up a notch and reward your clients according to the referrals they make. The rewards could be as small as a cup of latte or as substantial as free insurance premium for a month, depending on your budget. Just remember to make it clear to your clients of the rewards you’re offering in return for quality contacts.
Understandably, it may take some time to adjust to a new way of looking at referrals, but just push through with these practices and you’ll be on your way to earning a lot more referred leads. If you have team-mates and recruits who would find these tips helpful, make sure to share this article with them to help them increase their success with referrals too! And don’t forget to Like us on our Facebook page so you don’t miss out on any articles related to you!
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