Growing Your Database in 2017: The Ugly Truth About Referrals

Recently, the nation has had many developments on which to reflect. Shortly, Donald Trump will be President, which will most likely introduce much change in our government and how business transact business. Just when we thought we could get “comfortable” in the financial world, the Fed also decided to raise interest rates, which could make it more challenging for people to buy a home.  All of these changes may lead advisors adjust the advice that given to clients, but many should also remember that we can improve aspects of our own businesses at any time regardless of the political or business environment.

Think Ahead

In this post, we want to emphasize the importance of sourcing more referrals in 2017. If you’re in the business of selling life insurance and other financial products, you could reach some clients through passive marketing such as online ads, but you can also get real referrals from people whom your colleagues know. If you are willing to adopt a sharing mindset, you could be growing your client database in a short time.* But, don’t start playing Kum-ba-ya on your iPod just yet. We can’t say it any plainer than this: you must share your clients and prospects with other salespeople in order to expand. Since you’re in the business of building relationships and counting on referrals, remember to be selective about whom you recommend. If you’re diligent about making referrals to colleagues, you should expect them to do the same. When you send clients and prospects back and forth within a network, there is potential growth for everyone. The network that you belong to also grows outward. Your first wave of new referrals will refer the people whom they know to you if you give them good service.

Don’t Take Our Word for It!

We know of an easy way to justify the need for sharing referrals. Look around you! Today’s consumers go crazy for service delivery models in which companies recognize their newest demands. That’s the whole point of consumers searching for an Internet-of-Things (IoT) aspect to every brand that they support. The funny thing about sharing prospects and clients with key individuals in your professional network is that you don’t have to invent an app or change much about your customer service delivery model. You can just share.

See for Yourself!

It’s easy to determine if sharing customers with colleagues is an option worth considering. We found a recent INC.com article in which Paul Weinert, founder of Graybox, explained how you can analyze what you are currently doing in terms of marketing:**

“Do a deep analysis of your sales or your leads using your key metrics, broken down by marketing channel: organic, referral, advertising, online ads, social, press, etc. One or two of them will vastly outperform the others. If you want to grow quickly and cheaply, double down on the channels that are working. Then determine your conversion rate–how many visits from customers turn into sales?”

Invest Wisely Where It Counts!

Take a look at your metrics. The top one or two performing marketing channels are essential. Don’t change those. Your analysis also shows which marketing channels aren’t working for you. Take some money from those weak-performing channels and use them to get more referrals. You can also pay for a referral service within your own industry. Take some downtime before the New Year to call colleagues and ask them for referrals. You can promise to do the same favor in return. You can incorporate handing out a colleague’s business card into your sales routine and have it polished by early January. With more referrals, you can profit from Trump-era inflation like everyone else!

For more helpful pointers and other insurance marketing topics, please contact IFN directly at info@imeriti.com









The information contained herein is for general information purposes only. Imeriti, Inc. is not to be held responsible for the accuracy of this information. Neither Imeriti, Inc. nor its employees provide tax or legal advice. As with all matters of a tax or legal nature, your clients should consult their own tax or legal counsel for advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax adviser.

The information, statistics, and opinions reported herein are from sources believed to be reliable. However, Imeriti and the author of this blog do not guarantee the truth, accuracy, and reliability of any source, fact and/or statistic cited and no do necessarily agree with any opinions expressed by such sources.

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