If you’ve ever asked a friend or a family member to recommend a doctor or another professional, or if you’ve ever selected a service based on reviews on blogs that you trust, you know how powerful customer referrals can be. Reading a carefully crafted advertisement online has nowhere near the power of a real person saying, “I used X Agency for my insurance needs, and they did a great job.”
Encouraging Customer Referrals
If you want a customer to refer business to you, the first thing you must do is earn that customer’s trust. The second thing is to establish that you are a cut above your competitors when it comes to great customer service and innovative insurance ideas.
Once you have created a loyal, satisfied customer, you can increase sales by simply asking that customer to refer others to you. Asking is important, because many customers won’t think to do it on their own. You might even start an incentive program offering discounts or special perks to customers that refer others to your agency.
There are different ways that a customer can refer others to you. One is talking about your agency to co-workers, friends, and family members. Another is writing a testimonial that you can place on your blogs or social media sites.
Another good way to increase referrals is to invite your client to connect with you on LinkedIn, a professional social networking site. Once you are connected on LinkedIn, you can ask your client to introduce you to his or her other connections who might be interested in insurance.
How to Handle Referrals from Customers
If you want to increase sales, customer referrals should always be treated with kid gloves. If the newly referred customer asks to work with a certain member of your staff, for instance, do your best to honor that request. You can also build trust by checking in with the person who has been referred and making sure that he or she is happy with the products and services you are providing. If so, encourage your new customer to make referrals, too. The more satisfied customers you have, the more you can increase sales.