To succeed in the insurance industry, you need to rely on many different strategies. Some of those consist of “old school” techniques, such as cold calling, handing out business cards, and using word of mouth. However, this also includes things like using an insurance agency management system, running an effective marketing campaign, and finding creative ways to get referrals.

Innovative Strategies to Enhance Business Through Referrals

Unfortunately, some insurance agencies overlook the value of referrals, making this a missed opportunity. Referrals have two unique benefits. First, they don’t cost a dime. Second, they’re almost always qualified. For these two reasons alone, you should consider various referral strategies that you can implement today. Here are five to start with.

Provide Appropriate Training

As the owner of an insurance agency, it’s up to you to ensure that all employees get the training they need to perform optimally. This is especially important for agents. People just getting started in the insurance business aren’t yet seasoned enough to know all the critical information and techniques. At the same time, your experienced agents might be set in their ways. Both of these scenarios don’t increase client referrals.

The best way to get your clients to refer family, friends, coworkers, and neighbors to your insurance agency is to treat them right. This is where training plays a key role. The goal is to ensure that everyone in your agency understands the importance of excellent customer service and provides it daily. The clients who feel appreciated and respected are the ones who will refer people to your agency the most.

Create a Client-focused Environment

Even with proper training, you want to make sure your staff works in a client-focused environment. That consists of putting the clients first, following through on promises, and maintaining a positive attitude. When clients visit your office, they’ll quickly see how your agency makes them a priority. At the same time, this is a great way to boost employee morale.

Stay Organized

You might question what this has to do with referrals, but the answer is: a lot. The more organized your agency, the fewer mistakes made. Behind every transaction is an individual or business that expects perfection. With busy schedules and tons of responsibility, your clients don’t ever want to deal with mistakes.

Using an insurance agency management system from a reputable source is one way to stay organized and keep your clients happy. With accurate records and details, you have a reference point that you can use to upsell. Also, by making fewer mistakes, you can anticipate seeing a greater number of referrals.

Offer Incentives

Another great strategy for getting more referrals is to offer some kind of incentive. However, this should apply only to referrals that convert into a client instead of when someone merely contacts your agency to ask questions. The person who referred the client would receive some type of incentive, such as money, a gift card, tickets to a local sporting event, restaurant coupons, and so on – just be sure that you’re not violating any “rebating” regulations.

Time Your Request for Referrals Perfectly

If you asked all your clients for referrals without having a plan in place, it would probably backfire. Instead, it’s all about timing. The goal is to make your request at the opportune time. Here are a few suggestions.

• After a client purchases a policy that gives them great coverage and saves them money
• Following a specific incident in which a client received outstanding support or service
• If you personally know the client

Make the Referral Process Easy

Some clients don’t even think about referring people. It’s not that they’re unhappy with the service or product your agency provides, but they’re more focused on other things. So, you need to make it easy for your clients to refer others.

One example is to create a simple form on your website that will allow your customers to send you the information of their friends and family that they think would benefit from your services.

Optimize Your Website

Considering that a lot of people search for and buy insurance online, you need a professionally designed website. However, to increase the number of referrals to your agency, take that a step further. Start by adding an opt-in option. Then, make insurance intriguing by using interesting live streams, videos, and images.

For one thing, this will help capture the attention of prospects. For another, it gives your current clients a place to point to when someone asks them about the agency they use for their policies.

Build Strong Business Relationships

Often, owners of insurance agencies develop strong business partnerships with a broad range of companies in other industries. You know the saying, “I’ll scratch your back if you scratch mine”? Well, that applies to referrals.

In exchange for your promotion of the other companies, they can refer clients to your agency. The key is to build relationships with businesses that complement insurance in one way or another. Car dealerships, real estate agents, banks, and home builders are all perfect examples.

Summing It Up

Referrals are one of the most effective ways to grow your insurance agency. By developing sound strategies, you’ll likely see a change in very little time. These eight tips will help you get started.

 

Many people work in industries that require them to sell a product or service. Insurance is a prime example. Although potential clients sometimes go to agencies due to a referral from a family member or friend, typically, the agents work hard to find clients. Although this position is rewarding, it’s not always glamorous.

A Day in the Life of an Insurance Agent

Consider for a minute all the things an insurance agent does on behalf of their clients. Here are just a few examples.

• Finding the Right Coverage – Agents offer their clients options, advice, and guidance from the get-go about the type and amount of coverage needed. The goal is to ensure that every client is properly protected, whether under a commercial, residential, or personal policy of some kind.
• Advising on Changes – From there, an agent stays on top of any policy and industry changes. If they discover better coverage or perhaps a way to save their clients money, they’ll contact them to provide new information and options. Again, the agent goes over the possibilities so the client will end up with exactly what they need.
• Handling Premium Payments – Insurance agents must also make sure that clients pay their premiums on time. The last thing they want is for someone to have a policy lapse because of an oversight. Unfortunately, that happens all too often.
• Assisting Claims– If a client needs to file a claim, that individual’s insurance agent is there to help. While the insured might need to do a little bit of the work, the agent handles most of it. In some situations, that entails having conversations with the insurance company, negotiating a better deal on the client’s behalf, and maybe even going to battle against another provider that insists the client was at fault when they weren’t.

An insurance agent’s job isn’t the typical 9-to-5. Commonly, clients call their agents at home on the weekend, during the night, and on holidays. Some people feel as though their agents should be at their beck and call.

Now, sometimes, there’s justification for an off-duty phone call. For instance, if a client’s home burns down or they’re in a serious car accident, then the agent is more than willing to help regardless of the day or time. However, some clients call about things that could wait until the next business day to discuss.

As you can see, working as an insurance agent goes well beyond getting a policy for someone and taking their money. Rather, these professionals strive to keep their clients protected under the best policies and for the most affordable premiums.

You would think with all agents do, the clients would show appreciation and gratitude, and most of them do. However, there are rare occurrences when an insurance agent has to make a tough decision about whether to continue providing a service and product to the client or to part ways.

When It’s Time to Go

Believe it or not, insurance agents have had to fire their clients. This can happen for multiple reasons. The following are some real-life scenarios in which this occurred.

Refuses to Listen

A good agent listens to their clients. However, as the expert, the agent also expects their clients to listen to them. After all, their job is to help people select the right policy based on specific needs. So, when a client continually refuses to take the professional advice of an agent, it’s time to end the business relationship.

Whenever there’s a communication breakdown, that becomes problematic for an insurance agent. At that point, they can’t provide an effective service, which ultimately could put them, the agency, and the client at risk.

Unrealistic Client Expectations

Without question, top-rated insurance agents do a remarkable job in serving their clients. Even so, they’re not magicians. So, when a client has unrealistic expectations about what their provider can do, they should move on. In particular, this type of client demands a solution immediately without giving the agent time to work through the issue.

The Ghosting Client

Another time when an agent should fire a client is when that individual disappears for long periods. Despite sending emails and texts and making phone calls, the agent can’t get in touch with the person. In most instances, this might not matter, but when critical things arise about a client’s policy and the agent can’t find them, this becomes a serious problem.

Never Good Enough

Considering just how hard good insurance agents work for their clients, there’s nothing more frustrating than to hear that what they’re doing “isn’t good enough.” When an agent has a client that they can’t satisfy no matter what they do, the relationship often isn’t salvageable.

The Blame Game

Then, there’s the client that blames every unfortunate circumstance on the agent instead of accepting the fact it’s their issue. For example, say a client didn’t pay their premium. As a result, their policy got canceled. Rather than admit to not making the payment, they blame the agent for not sending them a reminder—which they did, by the way.

Another example: say a client’s business suffers damage. So, they contact their insurer, only to find out that they don’t have adequate coverage to pay for everything. Although the agent had strongly suggested different protection beforehand, the client refused and went with something else. Now, they feel the lack of coverage is the insurer’s fault.

Feeling Entitled

There’s yet another type of client that insurance agents should fire. This person has a sense of entitlement. They believe they know more, deserve more, and should get more. This client wants to always come first, and if that doesn’t happen, they get angry.

An insurance agent’s job is hard enough as it is. So, dealing with an entitled client is aggravating and time-consuming. It’s also not fair to all the other clients the agent works with.

The Bottom Line

These are just a few examples of why and when it’s okay for an insurance agent to fire their client.

If you work as an insurance agent, remember that most people are reasonable and appreciative. So, if you ever need to fire one, don’t feel bad. Recognize it wasn’t meant to be.

When an individual or business wants to buy a policy, they could turn to any number of insurance agencies. If you run an insurance agency, it’s important to stand out. That way, prospects will immediately focus on your agency and what it has to offer rather than go somewhere else.

The key to making this happen is to ensure your insurance agency is unique compared to others. From a client’s viewpoint, their main focus is on obtaining excellent coverage at an affordable price. While that’s part of succeeding, you want to prove to them that your insurance agency adds value beyond that. Here are some tips for how to make your insurance agency more valuable to clients.

Talk to Your Clients

While that might sound like a given, surprisingly, many insurance agency owners and agents fail to do this very thing. As a good rule of thumb, whenever you talk with a client, whether in person, over the phone, or even via email, ask questions. The more information you can gather, the better you can serve them.

Remember, a conversation is two-sided. So, along with talking, make sure you spend time listening—really listening. Keep a notepad nearby or have your computer open so you can jot down notes from each conversation.

Also, any time you meet with a current or prospective client in person, stay aware of your body language and the tone of your voice. You want people to feel comfortable sharing information with you. So, give them your full attention and remain engaged at all times.

Maintain Accurate Client Records

From a client’s perspective, there’s nothing more frustrating than providing the same information to an agent over and over again. Remember the notes you took? Well, you can enter those, as well as a wealth of other valuable information, into your insurance agency management system. That way, you’re always prepared when speaking with the same client.

By having the information, you’ll quickly build a tight bond with your clients. They’ll realize that you listened and care enough to remember key information about them and their policy needs.

Beat Clients to the Punch

Another great way for your insurance agency to add value is to contact clients with new information about better coverage or savings before they reach out to you. Taking the initiative in this industry is a key to success. With the detailed notes that you took from your first meeting with a client, you’ll know the things to look for later on that could benefit them.

Make Your Services Convenient

In all fairness, buying an insurance policy isn’t like shopping for a new car. After all, people need insurance protection, making this a required purchase. In comparison, buying a new vehicle is exciting and fun. However, you can enhance the insurance buying experience by making your services more convenient.

For instance, offer your clients flexible hours. That way, they can visit your office early in the morning or later at night. Better yet, go to them. Because people must have insurance for many things, make the process of getting coverage easy. Existing clients and prospects will both appreciate your efforts and thereby choose your agency over another.

Educate Clients

Believe it or not, most people want to learn about insurance so they can make well-informed decisions. The problem is that many insurance agents use jargon that clients don’t understand. Take time to teach your clients about the different types of policies based on their specific needs using language they can relate to.

Unfortunately, some insurance agency owners and agents feel that giving clients too much knowledge equates to giving them too much power. That’s not accurate at all. You want your clients to understand the products you sell and why you recommend the things you do.

Multiple studies on this very topic show that educated clients have more trust in a business than those without an understanding of services. As stated, it’s important to build a strong business relationship with your clients, and this is one more way to accomplish that.

Make the Insurance Buying Experience Positive

Seriously, the more positive the experience, the more your clients will depend on you for insurance. This often includes small things, like ensuring that you can accommodate their schedule or that you’re setup to communicate with them using their preferred method (face-to-face, Zoom, phone, text, email, etc.). Make the entire experience about them, focusing the conversation on the benefits to themselves, their family, and their livelihood.

Summing It Up

For your agency to add value, you need to look at everything from the client’s position. What would they appreciate being added to their insurance buying experience? This will give you an entirely new perspective of the things you need to change.