If you ask any agent where he gets his business, he will tell you “Referrals”. This is true, and probably true for most agencies, but do you have any plan around referrals? Is there anything that you do to increase or even stop referrals?
Referrals are extremely cost-effective forms of advertising. They are usually free.
Here’s some quick tips around referrals that would be worth experimenting with in your agency:
1. Ask. Make sure everyone in your agency asks for referrals on a regular basis. If this is a problem, create a competitive environment to prime the pump. Create a contest for the person with the most in a period of time.
2. Track. You are probably getting some referrals that are bad. Track what you are getting and stop the flow from bad sources.
3. Incentivize customers to give you referrals. Put customers in a drawing for every referral they give. Reward customers with referrals such as gift cards. One cheap reward with a high perceived value is movie tickets. These are cheap but provide huge value for the customer. Check with your states on gifting and rebating laws. Usually as long as you are only paying for the quote and not the business you are fine.
What do you do to generate referrals? Do you have a plan or just hope they flow?