Insurance leads: Why referrals are so useful

The classic form of referral is one you get from a customer who is also a fan of what you do. Sometimes, customers will volunteer to provide you with these valued insurance leads on their own, but more likely than not they'll need a nudge from you.

Of course, it can cause a little anxiety to ask customers to go out into the world and be your advocates, but you've got to ask the question.

Here are just a few of the benefits of gathering referrals:

  • A cycle of satisfied customers. As an increasing number of clients willing to talk to friends about your agency find themselves happy with your products and services, they'll tell more people about it. Those people, if satisfied, will tell their friends, and they'll tell their friends, and so on.
  • Reduced expenses and optimized time. Think about it: When you're getting referrals, other people are doing the work for you. They're doing the work you could be doing if you were spending all day cold-calling prospects or sending out emails. But with a much greater chance of success.
  • You'll get a better return. Experts say you can expect about a 10% return from non-qualified leads, while referred leads can bring you around a 60% closure rate. That's six times better!
  • They're important for long-term growth. When you start your agency, it's important to gain business from your local market of shoppers, but to keep your business growing years into the future, you'll need those shoppers to be your advocates so you can continue to expand your influence and your customer base.

Asking your customers for referrals is worth the effort. These insurance leads are sure to pay off!

More info on referrals:

Making Referrals Part of the Process

Referrals Provide Stability and Growth to Agencies

Gauging the Client to Ask For Referrals

Category: Sales Tips

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