Referrals can be the life blood of revenue for many businesses. According to Paul and Sarah Edwards, authors of Getting Business to Come to You, up to 45 per cent of most businesses are chosen by customers based on the recommendation of others. There are two ways to go about getting referrals:
1. Active Referrals
2. Passive Referrals
Active referrals, as the name implies, involve asking your client or
prospect for referrals. Many insurance advisors are uncomfortable with this
process, but it can be a very effective way to gather new clients.
It’s best to give the prospect or client a list of different people who can
benefit from the type of work that you do, such as new homeowners, people who had a child, or people starting a new job.
The other type of referral is passive referrals. Passive referrals do not
involve asking the client for referrals. Instead, referrals come to the
insurance agent or broker without prompting because the client is so impressed with the broker’s level of service.
By exceeding customer expectations, and letting clients know that you welcome referrals, insurance advisors are able to get referrals without actually asking. The key is providing great service and then it’s a win-win for everyone.
Referrals are the greatest compliment that an insurance advisor can receive
because they show that your client or prospect has confidence in the type of
work that you’re doing.
