How to Better Understand Insurance Consumers & Boost Your Referrals

By Allison Babberl on May 17, 2016 in Client Retention

How to Better Understand Insurance Consumers & Boost Your Referrals

Understanding the Modern Insurance Consumer 

It’s hard to create a meaningful relationship with someone when you don’t understand them or their priorities. This holds true in the world of insurance and selling, too. Agents need to understand the modern insurance consumer in order to be successful in their market. 

Modern consumers are social, emotional, and digital creatures, and base their decisions off of those three criteria. Insurance agents need to know this in order to have effective, prosperous relationships with clients. These stats can help you understand how the modern insurance consumer is making their insurance buying decisions:

  • 71% of consumers read reviews and testimonials before buying online and are seriously considering the advice. 
  • 38% of consumers research insurance products and insurance types online 
  • 61% of consumers will likely leave if your website isn’t mobile-friendly
  • 24% of consumers buy their insurance online

Many modern consumers don’t think about insurance until something life-changing occurs, like a marriage, a baby, or a serious health issue. Mainly what the modern consumer is looking for is peace of mind; they need to know that you will be there for them and support them when a tragedy occurs.

Understanding how your consumers are buying is crucial. They respect the opinions of their peers and how “with the times” your company is. These stats show that your insurance agency should seriously consider how you are presented digitally (mobile-friendly and responsive) and how you are perceived by others (referrals). 

The Art of Referrals

A couple of weeks ago we discussed how important good customer service is in gaining referrals, but you can’t solely rely on that. Good customer service anymore is a prerequisite. Even if you give outstanding, knock-their-socks-off service, you can’t just sit back and wait for them to refer you. You should have a plan in place detailing how you will approach your clients and which of your clients you should ask for referrals.

“Good customer service only reduces negative word-of-mouth; it doesn't necessarily increase your business through positive word-of-mouth.” 
Ivan Misner

One way to start is by creating a list of those clients you think could be referral potentials. An NPS Survey can help. The results will show you which of your clients are your biggest fans (promoters), which are neither here nor there (passives), and which are unhappy (detractors).

Net Promoter Score Webinar

Determining which of your clients are promoters will help you decide which clients to ask for referrals. These are your happiest clients and your best chance for referrals. With that, understanding which of your clients are passives and which are detractors will provide you the perfect opportunity to work with them, boost their experience and move them to be promoters. 

Regardless if they say yes or no, always remember to thank them. When you have a referral come in, make sure you find out from whom they were referred and send them a thank you. (Sending them a handwritten note will be even more powerful.) Making them feel appreciated and showing them your gratitude will help propel them to refer more and could help grow your agency. Modern consumers crave that human element in business; gratitude is uniquely human, so use it whenever you can. 

Want to learn more about the modern insurance consumer?

Our free eBook will give you insights on how to navigate online and offline channels to improve your agency’s communication and client retention. Learn how to utilize technology to boost your referrals, prospects, and stay relevant to the modern consumer in the digital age. 

Allison Babberl
Allison Babberl

Allison is the Marketing Content Specialist at AgencyBloc. She creates educational content and designs videos to promote AgencyBloc's resources to help you organize, automate, and grow your insurance agency. Favorite quote: “Conversation is the bedrock of relationships. Without it, our relationships are devoid of substance.” -Maribeth Kuzmeski More articles

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