This month we're talking about empathy and the psychology behind testimonials. It only makes sense that we first cover how effective testimonials are and why they're important. People often research online before making a purchase decision, so testimonials come into play there.
- 67% of the consumers indicate that their buying decision is influenced by word of mouth
- 93% of the consumers believe that word of mouth is the most reliable source of information
- 74% of the consumers that received a negative recommendation about a brand decided to change
We can consider word of mouth and testimonials pretty much the same. I like to think of word of mouth as an in-person conversation you might have with a friend, whereas testimonials are often online and may be from people you don't know.
Just to drive the point home even more, here's some numbers from Quora:
- 91% of people have gone into a store because of an online experience
- Those aged between 20 and 29 years old are almost twice as likely to seek information or advice from social media as the generation before them
- Before ever entering a store, 62% of Millennial shoppers already know what they want to buy through prior online research
So, we all agree: testimonials are super important. They provide a sense of reassurance for new buyers and current customers. They also provide social proof and credibility for what you say your agency can do.
These statistics show that purchase decisions definitely involve emotion. For insurance agents, this is especially true. Think of life insurance. People tend to buy life insurance when a major event happens or is going to happen in their life, like getting married or having a baby. They want to protect their loved ones. It's vital that insurance agents remember to be empathetic to their clients' and prospects' needs. A good insurance agent isn't just there to sell a policy. They're someone to confide your needs in who will find you the best solution for your situation.
Overall, agents should just strive to maintain a meaningful, ongoing relationship with their clients. This, of course, will lead to testimonials, but it will also just make your life as an agent easier. Slacking a little in maintaining constant contact with your clients? The best place to start alleviating this problem is to maintain your book-of-business in an AMS (agency management system) or CRM. This will help you consistently keep updated information on your clients, foresee cross-sell opportunities and even automate some communications. Check out this infographic to see why other agencies have started using agency management systems.