Leveraging Referrals: Maximizing Your Business Relationships for New Lead Generation

Leveraging Referrals: Maximizing Your Business Relationships for New Lead Generation

Typically, when we think about marketing, we think of ways to solicit leads via traditional advertising techniques – email marketing, digital ads, social media and content marketing, etc. But in reality, as financial service providers, we are marketing ourselves every single day through our interactions with customers.

We often talk to agency partners who say they don’t spend a dime on marketing because of all the referral business they receive. If that’s true – you are, in fact, marketing every day. Every time you take a call, help a client, provide a solution someone else couldn’t, you’re marketing yourself and your agency to your existing customers.

Referrals are the best types of leads, and in fact, are better than traditional leads because you’re significantly more likely to close a referred customer.

According to Nielson, customers are four times more likely to buy into a service if they’re referred by a friend, and up to 92% of people trust recommendations from friends and family more than any other form of marketing.

But are you truly leveraging the power of your business relationships effectively? Here’s a few things to consider when utilizing a referral program for new business and lead generation:

ASK!

Any happy customer will be more than okay with sending referrals your way, so don’t be afraid to ask! ESPECIALLY ask new customers for referrals – as they are typically the most excited and happy after making a switch. Many salespeople fail to capitalize on the referral power of satisfied customers simply because they don’t know how to ask.

Every time you speak with a client, you should politely ask “Do you have any friends or family who could benefit from our services?”

This will prompt them to think of friends and family who aren’t looking to make a switch but may do it simply because your customer brags on you and your agency. Include requests for referrals in your email communications as well.

Even if they don’t have anyone to refer right away, they will remember the fact that you asked, and be more likely to refer someone in the future.

Make it easy

Give your customers an easy way to brag about or refer people to your agency. Ask them to write a Google review. Give them business cards and/or some promotional swag with your logo to share. Incentivize them if you think it is necessary, but more than likely, your customers are happy to help. Keep your agency’s social media accounts active and full of great information, and then ask them to follow and interact with you. A customer sharing information from your business page is a great way to build brand awareness.

Be appreciative

Whether it’s a monetary incentive, card/note, phone call, email, or any acknowledgment at all of their loyalty, you will continue to nurture your relationship with them by showing them your gratitude.

In the current market, NOW is a great time to be building brand awareness and soliciting referrals. Many consumers will be feeling the crunch of skyrocketing rates, and non-renewals. You can position your agency to be a source of help and reprieve to potential customers feeling the heat of the hard market!