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Referrals as Lead Generation for Insurance Agencies

Sunday, November 25, 2018
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One thing every insurance broker needs is more leads. In fact, according to Zywave’s 2017 survey of 100 insurance brokers, lead generation is important to almost all of you.

We’ve discussed many effective strategies for lead generation, but one of the most simple and least expensive is generating leads from direct referrals. And recommendations from family and friends has long been the most effective form of advertising. According to a recent Nielsen survey, 83 percent of respondents trust personal recommendations. This might sound like just one lead generation strategy, but we’ve actually broken it down into four.

1. Ask for Referrals

This is the most obvious referral strategy, and it often works great to promote lead generation for insurance agencies. Sometimes, all you have to do is ask your clients to recommend you to their friends and they are happy to do it. You’ve spent time and effort building up those client relationships. Let them work for you!

2. Offer Incentives

Another option is to set up an incentive program. Announce by email to all of your clients that they will earn some sort of reward if they make a referral that leads to new business. You can choose any incentive you like, but it should be big enough to motivate. (Just be sure to check your state regulations to make sure this isn’t against the rules in your state.)

Here are a few ideas for giveaways:

  • Small gift cards for Starbucks, Amazon, or another inexpensive retailer.A monthly drawing for a larger gift item, like televisions and other electronics
  • A progressive giveaway program that offers clients small rewards for each referral, but a larger reward if they refer 10 new clients that turn into new business

3. Create partnerships

Build relationships with partners in similar industries that serve the same client base you do. For example, if you are a benefits broker, you should network with business leaders and your local chamber of commerce. If you sell P&C insurance, get to know mortgage brokers and realtors. Then, you can work out a system where you and your partners refer business to each other, or you can simply pay these people for referrals.

These types of referrals can actually be more valuable than client referrals. Instead of someone offering your contact information to potential clients, your partners can ask their customers if they can have you call them.

4. Start a Lead Exchange Group

Lead exchange groups are small, local groups of business people who meet up regularly for breakfast or lunch to exchange leads. You should only allow one member from each industry in order to keep the group noncompetitive. Start with your local chamber of commerce to look for members.  

Direct referrals are a simple and cheap way that insurance agents can generate new leads. People trust recommendations from family and friends, so it’s an effective strategy too. Put some of these tips into effect today and watch your referrals skyrocket! Lead generation for insurance agencies doesn’t have to be complicated!

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