3 Mistakes to Avoid When Asking for Referrals

3 Critical Mistakes to Avoid When Asking for Referrals

Referrals are still the best way for insurance agents to grow their business. However, for many sales people, asking for referrals isn’t something that comes naturally, which can render the strategy ineffective. If you’re struggling to get results when asking for referrals, you may be making some of these mistakes.

  1. Asking only once

    The concept of “one and done” isn’t an effective tactic when asking for referrals. Sure, you don’t want to appear overly persistent, but there are other ways to approach customers when following up on a referral request. For example, ask a customer for a referral when he or she comes into your agency. Then follow up later with a phone call, an email, and even a card.

  2. Not explaining the ideal prospect

    When asking for a referral, be sure to define the type of prospect you are looking for and how you may be able to help them. For example, does your agency specialize in coverage for small businesses, self-storage facilities, farm operations, or commercial properties? Be sure to let customers know what it is you do best, allowing them to approach people they know with information on how you can help.

  3. Only asking at the end of a sale

    .Prospecting should be a continual process and something that’s always on your mind. While it may feel more natural to ask for a referral when closing a sale, it isn’t an effective strategy. The fact is, once the necessary business tasks have been completed, the minds of new clients may have already shifted onto other things. This makes policyholders less likely to give much thought as to who they might refer to you. By then, they may just want to get out the door.

Referrals can be an effective way to grow your book of business, but it’s a strategy that doesn’t always produce immediate results. Develop a referral process that is effective for you and your agency and make it a daily practice. Remember to track results and make adjustments when necessary.

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