How to build your health insurance referral program

How many of your existing clients know your business depends on their referrals? Better yet, how many of them are sending friends and family your way? If you’re here, you’re looking to boost those numbers. And we’ve compiled some tips from top-selling agents to help you out.

You get what you ask for

Like anything in life, you’ll get what you ask for. But, crafting your referral ask can seem intimidating if you’ve not done it before. Fear not: every successful ask has three key elements you can reproduce; a frame, a handoff, and the question.

You might frame the ask like this: “Referrals are the lifeblood of my business.” Or, “Nothing makes me happier than referrals from the people I’ve helped.” One quick sentence that introduces the topic.

The handoff is easy – you’re placing a business card or other literature in their hands as you’re delivering the frame.

The question can be simple, too: “Who else do you know that might need to review their insurance?” or “Keep me in mind if you know anyone looking for a policy.”

Frame, handoff, question. Once you’ve got your script in place, it’s much easier to advocate for your business – and your income.

Can I reward customers for sending me referrals?

This is an unsatisfying answer, but it’s the truth: it depends.

If you’re not working in the Medicare market, you have significantly more options – but you’re still bound by your state’s rules and regulations around insurance marketing. Many states outlaw giving cash or gift cards as a finder’s fee for a referral. Or, if their regulations do allow you to reward referrals from customers, that finder’s fee can’t be contingent on whether you make a sale. So, that could be an easy way to get underwater quickly.

Instead, let’s look at a system you could safely reproduce across insurance markets.

Track your inbound referrals

First, you’ll need a way to track where referrals are coming from. Whether it’s a form on your website, an addition to your intake form, a note in your Customer Relationship Management system (CRM), or your homebrewed spreadsheet, you need to track responses to this question: “How did you hear about me?” That will give you a good sense of who is sending traffic your way. Which is great, because you’ll want to…

Develop a compliant recognition system

You most likely can’t directly exchange cash or cash-like tools. But you can recognize your customers in other ways. Some of the most popular options we’ve gathered from agents in the field are:

• Get personal: What’s the first thing you do with any hand-written card you receive? You display it on your mantle, or your home’s equivalent – at least for a little while. Your clients will do the same. Oftentimes, sending a genuine thank you note can be all the motivation a client needs to keep the referrals flowing. And all it costs is your time and postage.

• Print or digital media recognition: Everyone likes to see their name in black and white. Whether you put a referrer’s name in your newsletter, plaster it on bulletin boards, or tag them in a social media post, you’re going to see some magic happen. First, you’re delivering a dopamine hit directly to the referrer – they will feel good about getting that recognition. Second, other customers and prospects will see that recognition and may think “I want that, too.” Good stuff here.
  
  
• Hold regular customer appreciation raffles: Note that rebate and inducement laws will vary between states. Some carve out exceptions for referral raffles; others don’t. You’ll want to check with your own state’s Department of Insurance to make sure you’re in the clear, but where it’s allowed, you can enter each referrer’s name in a raffle for a big-ticket item. Think event tickets, a TV, etc. Or, you can raffle off several smaller items, like Bluetooth speakers, gift baskets, or fitness trackers.
  
  
• Customer appreciation events go a long way, too: Invite the community in for a gathering at your office, in a local venue, or anywhere else! Dish out pies or other seasonally appropriate snacks and give your customers a chance to spin to win any promotional items you might have. Bonus points if you schedule your event during a community event, like a sip and stroll or sidewalk fair. That’s a great way to increase foot traffic from both customers and prospects.

Whatever you decide, know that you have options. And, your account manager is eager to talk you through them. We're also happy to reimburse qualifying marketing expenses.

Put it all together

There are only two key elements to your referral system: delivering a compliant and compelling ask and providing a compliant reward. Once you have those things in place, you’ll see your business start taking off. But if even that’s not enough, consider building a referral network with other local professionals.