My neighbour owns a business and over the weekend we were talking about his insurance broker. He said the broker does a great job, services his account well and stays on top of their needs. I responded, “That’s great, have you referred others his way?” The answer was telling and an odd reflection of our industry. My neighbour said, “No, he has never asked.”
Are your brokers being proactive in terms of referrals? Brokers, be honest, are you asking for them? In a survey on the industry, I read that 69% of brokers felt they did not have a formalized referral process, and it’s not hard to see why. Asking for referrals isn’t easy. Yet we are an industry built on relationships and pride ourselves on our people and our service. If a brokerage has 100 clients and can get two referrals from each, think of how quickly that can affect your pipeline and next quarter’s results.
At your next company-wide meeting, list all of your customers and then ask everyone in the room, “Who on this list has given us a referral?” It should serve as a wake-up call to explosive potential growth right at your fingertips. It is easier to open doors with a referral and closing ratios are much higher. The following are 9 steps for a roadmap to referral success.
1. Make sure you have a compelling story
To earn a referral, the customer needs to feel compelled to want to give it. A broker just handling the renewal nowadays is not going to cut it. Clients are looking for brokers to proactively monitor their needs, have monthly communication and keep them abreast of legislative and regulatory compliance. Make sure your firm has a great story and your people are good at telling it.
2. Track what you do for clients
This has become a lot easier to do with technology and customer relationship management systems. Often a customer has no idea you made 20 calls on their behalf or remember you negotiated their renewal down 6%. Encapsulating your results and service in an annual stewardship report should translate into an easy way to ask for referrals.
3. Create a list
Work through your customer list and target the people who really love you first. Whether it is performance-based or simply a good relationship, these should be the first ones to target. While you are at it, stop to take a moment to think of who else might refer you as well, such as your banker or accountant.
4. Train your brokers to ask for them
Asking for referrals is not easy. It is an immediate barometer of the relationship, similar to asking someone out on a first date. It takes work to do it well and your firm should do mocks and practise to get it right. It might feel stupid but could be the single best thing to drive your top line this year. Hard to feel stupid when your results increase by 30% – and if you get pushback from brokers, just tell them this will put money in their pocket. There are proper ways to ask and books on the topic, so put together a strategy and work on it. And don’t forget to make this a part of training or mentoring for any newer brokers you bring on board.
5. Create a standard message at end of year
How many holiday cards do you get from carriers with a bunch of signatures and a canned note? Half the time I had no idea who the people were who signed them! Why bother? Your clients feel the same way. Instead take the time to do a handwritten note. Thank them for their business and ask them in the season of giving, would they be so kind to give a referral? Yes it’s a lot of writing but it will distinguish you and it’s a great way to improve your handwriting!
6. Change your email signature
Be unabashedly proud of the service your brokerage delivers and change your email signature. Underneath your title, insert a tagline that says something like, “We are proud of the service we deliver and appreciate any referrals.” Make it your own to fit your brokerage, but you get the idea.
7. Make referrals internally fun
You need to get people onboard and create a culture that proactively asks for referrals. Start with a contest. The person with the most referrals gets a gift card or nice dinner out. They do not just have to come from brokers; often times account managers can be pretty adept at getting them as well. Pay an override on referral business that closes in the next quarter. Incent the staff and make it fun. On Mondays, have everyone tell a success story or a denial. A denial hurts at first but can be a learning experience and sometimes a good laugh once you shake it off.
8. Send a gift basket
When a prospect awards you with the business, send a gift basket. The card should thank them for their business. It also should outline everything that your brokerage provides. Oftentimes a P&C broker may neglect to mention that your firm does ancillary benefits or personal lines (or vice versa). It is a great deep sell tool. In addition, mention that you are a firm that grows with happy clients and always grateful for referrals.
9. Use LinkedIn
While many see LinkedIn as mainly for people looking for jobs, you would be surprised at how many influential people your own network of relationships contains. Oftentimes you can look up companies you would like to open a door with and see what shared connections you have, to find someone who may be willing to make the introduction.
Once you kick off this referral initiative, track it and celebrate the successes. Be sure to thank the person who referred you as that will encourage more referrals and foster that relationship. And don’t forget to remind staff that only happy clients refer business, so each referral is a direct reflection on the great service your brokerage provides. The best part is, simply implementing a tested referral program will put you ahead of 69% of brokers and fuel your firm to higher growth. What are you waiting for?
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