Generating Client Referrals – 9 Proven Methods for Success

Many successful businesses are built upon referrals and the life insurance business is no exception. A successful referral generating strategy can save you tons of money that would otherwise be spent on advertising, not to mention the extra time and effort involved. There are many effective methods, which when properly implemented are guaranteed to supercharge your referral results. In this guide, I will share some of my unique strategies for referral building – these strategies took me many years to perfect.

Remember to help – Generating referrals is largely a matter of sincerity and honesty. Your major focus should be on helping your clients, giving them meaningful information, assisting in creating fruitful bonds and getting them extra exposure.

Keep the referrer in the loop – Your client relationships in life insurance should be seen as lifetime partnerships. Keep in touch, know what are they doing at the present moment and keep them informed with your own undertakings as well. Make sure that you’re always contacting them for a good reason, be it advice or a recently acquired contact that they can benefit from. This way you’ll keep yourself in the picture and have the opportunity for getting a constant stream of referrals from many sources.

Ask the referrer to contact your prospect first – You’re much more likely to succeed if your prospect knows that you’ll be calling. This is one of the most critical steps, as it involves the need of active participation on the client’s side. A good way to break the ice in these situations is to ask the client to send the prospective prospect an e-mail – electronic correspondence isn’t hardwired in people’s psyche as much as telephone, and seems like much less effort in comparison.

Always carry a pen – You’ll notice many opportunities for new contacts through your daily business and personal life. Do you always have a pen and paper ready on you? Don’t make a novice mistake like this, or you could be losing out on easy and valuable leads. This practise alone is one of the biggest time savers and can lead to surprisingly rich outcomes.

Give meaningful, non-monetary gifts to be remembered – It’s common to give small and practical items such as pens, mugs, mouse pads etc. to your clients which will keep your name in front of them daily. Go one step further and personalise these – keep track of birthdays, anniversaries and notable events in your clients life. A warm and sincere congratulation engraved on these small gift can do wonders, and it’s a smart way to be remembered.

Tell success stories – Your clients need to know that their help is meaningful and will lead to a win-win situation for everyone involved. Voice your latest efforts and how they helped others. A subtle way of getting these messages through is via a newsletter or a recent story about a successful client on your website.

Remind the benefits – How does your client benefit from doing business with you? Make sure your clients will be able to answer this question to themselves in less than five seconds. Remind them about all the positives of your relationship, such as bringing up the topic of recent happenings with someone who you introduced them to.

Set up alliances with other professionals – Be a one stop shop and have contact information ready for introducting other professionals. You’ll see that many of your clients will be looking for lawyers, mortgage specialists, real estate agents or other business owners whose work is largely based on referrals. Set up these alliances early and you’ll gain a huge stream of new contacts on a regular, day-to-day basis.

Hold client appreciation events – It’s a good way to introduce your clients to each other and create new business opportunities for them. Your best shot is to make the event pleasant, fun and constructive in character. If you can, bring a top-name speaker who will be addressing a memorable and useful topic. At the gathering, be the life of the party and give all your attention to your guests.

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  • LSM Insurance
    May 13, 2008 at 8:54 am

    Thanks Steve. I’m glad you enjoyed the article. I appreciate you sharing your comments. Regards … Lorne

  • Tamara
    May 13, 2008 at 8:43 am

    Wow, some really great tips here!!!

  • Steve McVittie
    May 12, 2008 at 8:30 pm

    Some great tips and very important in building my client base.Thanks……

  • Referrals - a matter of sincerity and honesty
    April 15, 2008 at 8:26 am

    […] the referral results of life insurance brokers. In my latest guide, I will share some of my unique strategies for referral building – these strategies took me many years to perfect. This is just another addition my existing […]