Incentive Referral Program

Agents today have a wide range of tools to promote their business. But sometimes the most powerful marketing tools are the ones you can’t buy.

People prefer to do business with companies they trust. It’s just human nature. Think about it: when you need advice for a major purchase would you rather consult an advertisement or a trusted friend? 

Paid ads and media placements will get your name out there, but a personal referral can help you form personal connections quickly. That’s much more valuable than simple exposure.

The most powerful marketing tool is still word-of-mouth. A satisfied client that goes out of their way to endorse your agency among close friends can reach new clients in a unique and powerful way. That’s why every agency should implement a referral program. Here’s how to do it right.

Step 1: Recruit references  

Before you ask for a reference from a client, you should make sure they’re a happy customer. This part should be simple: just make sure you’re doing everything you can as an agent to make their experience as seamless as possible.

Then you will be the first person that comes to mind when they have a question about insurance. Clients should always have a general feeling that you are always there for them. The better the client’s experience, the more willing they will be to send you referrals.

Step 2: Have a tracking system in place

Any simple database will suffice to keep track of each referral that you receive.

Specific tracking will allow your agency to follow-up more often with your highest referees.

When running a referral program, agents should keep the 80/20 rule in mind. Some clients will refer far more than others so make sure you’re spending your time and resources wisely!

Step 3: Use incentives

Incentives are a key part of any successful referral program. Be sure to send out thank you cards and small tokens of appreciation, such as small gift cards, for referrals. This will encourage clients to give you more referrals.

Step 4: Promote it

A good referral program should be well promoted. In addition to making clients aware of your referral program verbally, you should also pursue other avenues to promote it.

A mention of your referral program in each issue of your agency newsletter is a good place to start. You might even want to include a list of clients who produced the most references. Clients love recognition.

You can also place a notice about your referral program on your desk and in your email signature.

Conclusion

If you’re wondering where to spend time and resources to promote your agency, you should definitely consider putting together an agency referral program.

Referral programs can be customized for any agency, large or small, and scaled as you grow. Even a simple referral can do wonders for your bottom line. Can you afford to pass up that extra revenue?