A referral program is something that drives traffic and gives your audience an incentive to refer other people to your business. It’s not hard to set up a referral program, but you need to ensure that it’s the right fit for your goals and audience; otherwise, it will not be effective. Here are some tips on creating the perfect referral program that helps generate leads for your agency.
Why You Need a Referral Program
Insurance is a significant recurring cost, so people are careful about their product choice or agent. They research and do their due diligence to find the right match, which is why a referral program is so important. Here are some reasons you need a successful referral program:
- The Power of Word of Mouth - Word of mouth carries more weight than any other form of advertising or marketing.
- Brand Presence – Referral programs provide agencies with a way to establish a strong brand. It's critical to have an attractive brand to attract clients' attention and earn their trust. You will have more success marketing your agency if it has an appealing image.
- Reach a Wider Audience – Many insurance agencies establish ties with local businesses like real estate companies, mortgage brokers, and lawyers. You can take advantage of this professional network to reach a wider audience.
How to Make Your Referral Program Successful
You must take several steps to create a referral process that will encourage your current clients to refer your agency to new clients. Here are a few suggestions to make your referral program successful.
- Create an Incentive System – Determine incentives to motivate your clients and create a program around them. Some popular ideas include small denomination gift cards or a charitable donation to a community-related organization.
- Make it Easy – Create a user-friendly rewards system that is easy for clients to recommend your services.
- Use Technology – Automate and optimize the referral process so it goes through quickly. Networks like AAI offer software solutions that can help speed it up.
- Identify Profitable Clients – Tap into the network of your most profitable clients. AAI's proprietary dashboard allows you to quickly identify this segment of clients.
At AAI, we support and train new insurance agents. We can also help to establish a successful referral program for your business. Contact us today to learn more!