The impersonal approach to prospecting (via cold calling, mass mailing, and seminars) is ineffective. What drives business today comes from nurturing and creating professional and business relationships.
A personal and professional referral gathering approach is one of the best ways for the producer to increase his or her number of prospects and the quality of his relationships.
Most insurance producers do not approach referral gathering systematically. By establishing a system that matches the producer's personal style, however, any producer can get more from his professional relationships.
Approaching referral gathering in an orderly way, producers can take advantage of and create referral opportunities. Some producers have been taught that all they have to do to gain a referral is simply to end a closing interview with, "Who else do you know?" This question, however, does not usually bring the desired results. Some producers may get referrals using this method, but they only are scratching the surface of the high-quality referrals they should seek to acquire.
When a producer reevaluates the way he thinks about gathering referrals, it is possible for him to begin building a solid foundation for managing and growing his referral process.
First, the producer must commit and establish the right attitude. The producer then must determine whether he harbors a negative or positive attitude about referral gathering. Doing an honest self-assessment of his current position can help. Many producers work hard to service and establish trusting relationships in the hopes that they will be given referrals even if they don't ask. I have seen this work for some producers first hand, but it often takes years.
The producer has to understand the referral process and how it works to implement a total referral gathering approach. He then must acknowledge the many obstacles that might be getting in the way of his achieving his desired referral results.
Many producers have told me they do not believe they should ask for referrals because they believe referrals should come from the customer's own suggestion. If they do a good enough job, they believe the referral will come as a reward. If the producer does not know how to ask for referrals, however, how can he expect customers to know how to give them? The truth is that some producers simply aren't comfortable asking for referrals.
A successful life insurance producer who had been in the business for more than seven years had received only a handful of referrals. His prospecting approach was to send business professionals a letter explaining his services, then follow up with a telephone call. This was his only means of building his client base.
The problem was that his success rate was dropping and this process was taking away time from servicing his existing clients. The producer also told me that when he began in the business he had poor results from his referral gathering efforts. Instead of trying another approach that better fit his style, however, he stopped trying altogether.
The producer should remember, it is his system and he has to form a comfortable partnership with it.
The essential ingredient in creating a successful referral system is liking people. The system should center around building creditable, trusting, and meaningful relationships with clients, centers of influence, and the producer's network. Others want to do business with those with whom they feel comfortable, know, and trust. Therefore, the producer has to make building his referral system a life-long process.
If the producer focuses on getting short-term fulfillment from gathering referrals, his results will be short lived and even will produce negative effects on his overall business. Relationship building must take place the moment he meets someone to produce the best results. Nurturing relationships is vital to every step of the referral process.
Many producers have asked me the best way to ask for a referral. The answer depends on the kind of business the producer wants to build. I know of only one life agent who asks for referrals by saying, "Who else do you know who wants to build a wealth protection plan?" By using this approach, he defines his market and lets others know what kinds of referrals he wants.
If the producer is asking for referrals by asking who a client knows to need life insurance, he is asking a client to know all the different ways in which life insurance can be used. The producer should ask himself if he knows all the different ways life insurance can be used. If he doesn't know all the ways, how can he expect others to know? The producer must start defining his market.
Life insurance producers are examples of professionals who truly can meet their clients' needs. Their entire business is centered on serving their clients. Many producers, however, have been taught a self-centered "me" driven approach to gathering referrals. This goes against most producers' belief systems and is one reason they are not good at referral gathering. The producer should remember that referral gathering is not only a self-serving endeavor. To produce the best long-lasting results, the producer's referral system must be client-driven, which requires selflessness and humility.
Another producer says, when asking for referrals, "My goal is to service your referrals in the best way possible and be sure my services are used successfully to meet your referrals' personal needs. I want them to thank you for referring them to me."
Producers who use a client-driven referral approach always are striving to earn the right to ask for referrals. They combine their approach with the way they advertise themselves. Everything they do and say centers around helping their client and referrals at every opportunity. They always conduct themselves professionally and always are looking for ways to improve. Their approach unlocks the doors to referral opportunities.
The producer must remember that each time he meets a client, member of his network, or center of influence, he has an opportunity to put his referral system to work. The system consists of much more than simply asking others for their referrals; it consists of building solid relationships, asking others for constructive feedback on how to improve, listening to what they have to say, and looking for ways to say "thank you" professionally.
The producer should not forget that the products and services he offers are of a personal nature. This is why when he markets himself through mass mailing or cold calling he is getting away from his profession's core values. His referral system should be personal, client-driven, and always seeking to establish meaningful relationships. He needs to be completely aware of how he is marketing and advertising himself around others.
I know a producer who advertises herself as a true professional and works with others using a team approach to meet their personal needs. She accomplishes this by living with compassion for others, listening to their individual needs, and asking for feedback. The producer advertises himself in both his actions and words.
I know another producer who holds referral appreciation nights for his clients, centers of influence, and network members who have given him referrals that year. Each year he holds different referral events that are well planned and organized. Each person who attends has a great time, and the producer makes everyone who attends feel special.
After the producer incorporates some of the ideas above in his referral gathering system, he will be ready to move effectively through the next three stages of the referral process: introduction and organization, relationship-building, and asking for the referral. He must be aware of what stage of the process he is in and conduct himself accordingly. It takes a life-long process to produce the desired results.
