The Art of Referral Generation.

Referrals - Defined. The easiest, efficient and cheapest way to get more names is to ask satisfied clients for referrals.  

Referrals. The easiest, efficient and cheapest way to get more names is to ask satisfied clients for referrals.  

A. From relatives and friends A referral is a satisfied client referring you to the next to whom you can do business. This process can start with one of your existing policyholders or with someone with whom you have just closed business or even with someone where you did not successfully conclude business, but treats you kindly.

A. From relatives and friends When you ask someone for names, he may be unable to think of suitable names without some guidance from you, with prompting questions that will lead your informant to give you suitable names. For example, you will not ask for names of colleagues. Instead, you will specifically ask for names of colleagues who were recently promoted or who are buying a house or who have had a baby, etc.

A. From relatives and friends This process is advantageous because: More information can be obtained about someone, which means that the qualifying process is easier. It is an advantage if the informant gives you permission to use his name when you approach prospects. It is much easier to obtain appointments this way.

B. From existing clients Although satisfied clients are very important source of names, some advisors are afraid of asking their clients for names. For the advisor who renders quality service, this fear is groundless. If you knew a good lawyer or doctor, would you not recommend him to a friend?  

B. From existing clients If you knew of a reliable garage, would you not want to share this knowledge with people that you know? The advisor who renders trusted service would therefore find out his existing clients are quite happy to supply him with more names. It is much easier to market to an existing policyholder, than to anyone else.  

C. From those with whom you have not effected business People who do not immediately want to do business with you are not necessarily unimpressed by your service. If you have done all your steps in your sales process correctly, they will still be providing you with names – more so because they usually feel guilty for not supporting you.

D. Referrals from your network It is quite natural for the beginner to think of his family and friends first and to close his first assurance business with them too. Just keep in mind that these people form part of your social network. Although they are a valuable source of business, they are more important to introduce you to potential clients or even an important source.

D. Referrals from your network They can become scouts to assist you to look for potential clients. Typical scouts are: Accountants, Heads of departments School principals, Secretaries Personnel managers, Pay clerks, Estate agents

E. Existing clients. Here are some broad guidelines when choosing a scout: He must know what type of prospect you’re interested in to prevent you from wasting valuable time with people who do not meet the necessary criteria. If the scout has influence with those he recommends you to, it is a bonus as his judgement will carry a lot of weight and his advice will be welcomed.

E. Existing clients. Here are some broad guidelines when choosing a scout: Select your scouts well. The quality of a scout is far more important than a large number of scouts. It is far better to have one or two good ones than to have fifteen or twenty poor ones. Make sure you regularly give feedback to your scouts. Nobody will be willing to continue unless he knows that he is getting results.

F. Own memory As a newcomer in the industry, you can probably think of a large number of people that you know. By listing relatives, friends and former colleagues, you could probably write down a hundred names. Use your relatives and friends to get started and to obtain an introduction to important sources or data pools.

G. The media An event that results in someone’s circumstances and needs changing is a very good lead in prospecting. Do keep a close eye on newspapers, electronic and social media for any event(s) that may be useful for you.

H. Utilising Suitable Names You already know that you will not secure an appointment with each name that you get. Many advisers make the mistake of discarding these names to make appointments at a future stage when the clients’ circumstances change.

Conclusion. Referral selling is the single most effective and cheapest method of generating quality sales for all the parties involved. If you do not already have this skill, develop it now and benefit from its enormous advantages.