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15 Best Ways To Get Insurance Referrals For Your Business

15 Best Ways To Get Insurance Referrals For Your Business

If you could run your entire insurance agency only on referrals, you would, right? Insurance referral programs are the holy grail of lead types for agents: Referrals don’t cost anything to get, they’re almost always qualified, and they are interested in buying your products. So the question is, how do you get more of them?

In this article, we’ll discuss 15 tried-and-true, creative ways to increase referrals that are easy to implement.

How To Get Insurance Referrals: 15 Creative Tactics To Try Today

Create a customer-centric culture. The best way to get referrals is to show how much you love the customers you already have. (Tweet this!) Prioritizing customers should come from the top down, which means you, as the agency owner, set the standard for an excellent customer experience. If you have a robust plan for great customer service, people will want to refer others to you.

Do you have tons of leads—but few customers? Find out how to increase your conversion rate in this free guide: 4 Strategies For Increasing Conversion.

Train your client-facing producers. Service-specific producers will likely already have a pretty good handle on how to treat clients, but hybrid producers may require some extra training. No matter whether you have hybrid or sales and service-specific producers, make sure they all participate in an initial onboarding program. After that, continue to provide opportunities for training and skills development throughout their tenure with your agency.

Use data to see how well your agency serves its customers. Metrics should be used to track exactly how well your agency is performing in terms of client satisfaction, length of time a customer stays with your agency, etc.

Track and incentivize referrals. In addition to data gathered from customers, I’d suggest tracking certain key performance indicators (KPIs) and using them to motivate your team. Two important KPIs include:

  • The number of referrals generated by each producer
  • The number of referrals who actually convert into customers

A referral is only useful if it’s genuine, so focus on conversion rate specifically. You can even run internal competitions or provide rewards for converted referrals as a way to encourage your producers to hit their numbers.

Determine the opportune time to ask for referrals. The best way to get referrals from clients will be at a time when they are happy and well aware of the value you provide. Some “flash points” might include times like:

  • When the customer first signs-up for the policy (particularly if you are saving them money for a better policy)
  • After providing a positive customer service experience (for example when a customer calls with a question about their policy, or after helping them with a claim)

Incentivize your clients to provide referrals. Establish a “reward program” for referrals, where you increase the value of the prizes clients can earn as they refer more people to your agency. Or, you can do something simple and offer the same benefit or prize each time. It’s very important that you are aware of your individual State laws regarding paying clients referral bonuses. In some States, you can not pay someone who is not a licensed insurance producer for referring you insurance business, and in other States there is a cap on how much you can pay someone.

Make it easy for your clients to send you referrals. One mistake we see with some agents looking for insurance referrals is that they don’t tell their clients exactly how they can help. Be very clear about the information you want your clients to pass on to their circles: Your email address? Your phone number? Or, should interested parties stop by your office?

Use account health scores to determine who to ask for referrals. One agent had a fantastic idea to build out his client base into tiers based on their account health scores. The tiers were identified using data about which of his clients were the best fit for his agency, thus showing him who would be the best candidates to ask for referrals.

Add links in your email signature. This is a one-step solution that makes it super easy for your existing clients to refer you to someone else.

Example of an email signature with referral link - EverQuote

Give your clients your cell phone number. If your contact information is stored on your existing clients’ cell phones, it will be easy for them to share that contact information organically with their friends and family should it ever come up in conversation. You can share this contact information immediately. Don’t forget to mention that it’s important they have your contact info in case of an emergency!

Go old school and write handwritten notes. You can wow people by doing this simple gesture—all it takes is a penned note to a client to stand out. Consider writing one when you’ve had a flash point (see #5) and are ready to ask for a referral.

Separate your customer service and referral programs. Though the two go hand-in-hand, you never want one of your customers to feel like they’re not getting equal care and treatment from you. Even in cases where specific clients do have an excellent referral relationship with you, you should never treat them better than other customers. All of your customers deserve your very best.

Ask for a referral the right way. Consider from the client’s point of view why they should give you a referral. When you can, talk about how much you enjoy working with the client, and share personal memories you have about working with that client.

Refer others. Establish two-way partnerships with parallel companies you respect and trust. Many of our partner agents build friendships with companies that refer to them—and who they refer to in return. Some examples of two-way referrals include:

  • Banks and financial institutions
  • Car dealerships
  • Accountants
  • Financial planners
  • Real estate agents
  • Home builders
  • Contractors

Track the ROI of your referral program as you would any other marketing source. Benchmarking and tracking the data on your referral marketing is imperative to know if the referral process you have in place is actually making you money. For every tweak you make, continue to measure and analyze your program (looking at the variables you’ve changed) to see how small changes can add up to big returns.

When you need to speed up the lead generation process...

At some point, most agents will need to supplement their referral program with high quality leads. When you’re ready to increase your client base, talk to us at EverQuote. We provide high quality leads that are delivered in real time and are never recycled, which means you have the best chance to reach out to people who actually intend to buy insurance, and who fit your insurance model. We tap the internet to find you customers who can bring in real business, real growth, and real ROI.

Talk To Us - EverQuote

Topics: Featured , Insurance Referrals

About the Author Elias Ammerman, Manager, Customer Success

Picture of Elias Ammerman, Manager, Customer Success

Elias joined the EverQuote Customer Success team back in 2016 after a number of years in customer facing roles. Since joining EverQuote Elias has been promoted from Account Manager to Team Lead to Manager of Customer Success. He holds a BA in Political Science from University of Massachusetts.

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  • Marketing , Referral Marketing , Word of Mouth Marketing

How to Start an Insurance Referral Program [+ Examples]

  • 14 min read
  • Last updated February 5, 2024
  • By Irene Lopez

insurance referral program

ON THIS PAGE

Key takeaways Check the laws in your area and be sure you have a reputation for outstanding client service before starting an insurance referral program. Cash, gift cards, and discounts (for both the client and who they refer) are the most motivating referral rewards, if you can legally offer them. Referral software can connect with your CRM to automate your program, freeing up more time for you to nurture new leads.

Insurance referral programs are a powerful marketing tactic for all types of insurance agencies to scale their growth. Aside from generating new business, insurance referral programs are also a great way to encourage and track your agency’s word of mouth.  

In this article, we cover why your insurance agency needs a referral program, best practices for creating a successful insurance referral program, plus practical examples of how these referral marketing strategies have been used by real-world insurance companies. 

What is an insurance referral program?

An insurance referral program encourages your clients to share your insurance agency with their peers, and then rewards them with an incentive for each peer who becomes your client. When done right, an insurance referral program helps you bring in new clients, gives you instant visibility on where your referrals come from, and scales your insurance agency’s growth. 

Why do you need an insurance referral program? 

An insurance referral program is a low-cost yet effective way to get promising new leads for your insurance business. 

Developing an effective insurance referral program requires strategic thought, creative referral ideas , and a little bit of work. But the results can be well worth it. 

There are many reasons why you should consider an insurance referral program.

  • Referrals can help reduce your customer acquisition costs. You are leveraging your existing customer base to refer leads to you, and their word of mouth is practically free. That’s an awesome way to save money on marketing!
  • Referral programs make it easier for customers to share information about your insurance agency and more motivating thanks to offered incentives. 
  • Even if customers are satisfied with your agency, they may need an extra push before they refer new business to you. Not every devoted client is going to refer leads on their own otherwise. Your referral program incentive creates the needed motivation.
  • Referred leads have a higher chance of becoming customers compared to other leads. They have higher conversion rates because they trust their peer’s recommendations far more than traditional ads.
  • Research points out a whopping 92% of global consumers trust earned media over other ads. This includes reviews or word-of-mouth recommendations from friends and family. 
  • People with similar backgrounds, tastes, and lifestyles tend to make similar choices.  
  • Insurance referral programs can be applied to any form of insurance with the same potentially great results.  This includes life insurance, home insurance , auto insurance, business insurance, and real estate insurance, among many other types.
  • Referred customers are more likely to bundle multiple types of insurance coverage (if you offer them). For instance, they might start off wanting life insurance. But while talking to them, you may be able to show them the benefits of taking homeowners’ insurance or auto insurance as well. Because they trust their friend’s recommendation of your agency, they may be willing to make more of an investment in you.
  • Referred customers are more likely to remain your customers for longer periods , giving them a higher customer retention rate and higher lifetime value. Again, that happens because they trust their friend’s recommendation.
  • Customers who recommend you to their friends also develop a stronger relationship with you, as they become more invested in your success. 
  • Insurance referral programs let you easily track every referral your customers make, and use the data you collect about your program to improve your success. It’s pointless to have a referral program without any means to measure how it’s doing. For example, tracking allows you to find your best sources of lead generation, whether it’s specific individuals or your social media channels. 
  • Referral programs let you accelerate the growth of your agency and effectively scale. Done right, you will get exponentially more leads for potential customers over time. 

Before you start an insurance referral program 

There are a couple of things to consider before you develop and start your own insurance referral program. Think of your program as a machine with many different moving parts that need to work together in order to run efficiently.

Make sure you have stellar customer service 

Nothing sells quite like customer service, especially in insurance.

Customer service is uniquely important for insurance sales because most insurance products in the same space (i.e., automobile, home) are relatively similar. The customer experience is actually the biggest differentiating factor. 

You’ll need to provide a stellar experience to convince a customer to buy and stay with your business.

And having a strong base of customers is essential to referral program success. For insurance agents, customer experience is probably the most important reason why customers will want to recommend you.

Know your customers

Knowing your existing customers goes a long way in getting more new referrals. It’s a bit like ears-to-the-ground market research. You should answer the following questions about your clients:

  • How do they get information about your insurance agency? From who or where did your current customers learn about your agency and services? This gives you an idea of channels that you could explore further, to promote your referral program. 
  • How do they communicate with friends? Find out their preferred channels and use the same channels for sharing in your referral program. This helps them easily refer others in those same channels. 
  • What motivated them to purchase insurance from you vs. a competitor? This is your USP (Unique Selling Point). Your USP is usually an advantage that’s unique to you and helps set you apart from the competition 
  • What rewards would motivate them to share with peers, friends, or family members? Information like this can help you develop referral rewards your current clients would be motivated to earn. 

Know how much it usually costs to acquire a new customer 

Customer acquisition costs are helpful for business owners to understand the difference between how much you’re earning from your customer vs. how much you’re spending to gain the customer. 

This customer acquisition cost will help you determine how much you want to reward for referrals. 

This may be a no-brainer, but at no time should your referral rewards eat so much into your budget that the program is no longer profitable. Your customer acquisition cost shouldn’t be more than the profit you’re generating from your customer.

Determine which customers you should promote your program to first

Look for customers who are likely to be enthusiastic about testing your program. 

  • Who have been loyal customers the longest? If you’ve been keeping in touch with the customers and have a long-standing relationship to fall back on, they could be potential first picks.
  • Use NPS (Net Promoter Score) surveys to see who is most likely to promote you. An NPS survey is used to measure customer satisfaction by asking how likely a customer is to refer clients to your insurance agency. Focus on the customers who love you the most. These are your “promoters,” or those who receive a score of 9 or 10 on the NPS scale.
  • Find out if some customers have already referred friends to your agency, without prompting. These are potentially your brightest superstars. They’re happy customers who are eager to share the news with others in their circle. 

Know the laws that govern insurance referrals in your area 

Your insurance agency referral program can be affected by laws specific to your area.

In the US, the laws that govern insurance referral programs can vary from state to state. Searching online can help you get an idea about the basics.

But it’s also recommended to get advice from legal experts. You don’t want to end up breaking the law simply for not knowing about it.

A basic example of one such legal concept is when you reward your customers with a ‘finder’s fee,’ say in the form of cash, gift cards, or credit towards a policy. Sometimes, you are only allowed to do this as long as you don’t reward other licensed insurance agents for referrals.

Best practices for insurance referral programs 

Before you develop your referral rewards programs, factor in these tried-and-tested referral strategies to enhance your offerings and get the best results. 

Offer valuable rewards for referrals 

Rewards motivate existing customers to refer their friends. Do the initial market research to find out what types of referral rewards will genuinely entice your customers. You don’t want to end up with a referral rewards program no one participates in. 

  • Cash, gift cards, and discounts are seen to be the most motivating insurance referral rewards for your current clients. 
  • Cash works for customers who love monetary incentives and immediate gratification. 
  • Gift cards and discounts on premiums can be motivating for practical-minded customers who are looking for things to make their lives easier or better.
  • Cash, a discount on a later premium payment, or a gift card are effective rewards for new customers.

It’s always best to reward both the referring customer and the new customer, with a “double-sided” reward structure.

This strategy goes a long way to generating customer referrals for life. Of course, you’ll need to ensure that referral rewards like these are legal in your state or region. 

Even better? Offer tiered rewards, where the incentive increases in value after someone makes a certain number of successful referrals. So, as the number of referrals increases, so does the value of the incentives for your clients.

Promote your program in a variety of ways 

After you build your program, it’s time to start promoting it. Customers need to know the program exists so they can share it and earn rewards. 

Here are a few ways you can promote your referral program :

  • Highlight information about our program on your website. Make sure it’s easy to find and located in a prominent position on your website. For instance, you could add a hero image or a banner on your homepage. You could also do referral buttons on your top and bottom menus leading the user to more information on your program. 
  • Develop email sequences focused exclusively on your referral program.  Avoid bombarding your clients with emails by turning them off in the process. And remember to send promotional emails only after you’ve sent emails providing value and sharing helpful resources first. It’s a delicate balance, so err on the side of caution. 
  • Add a promotional section for your referral program in a clearly visible section of your email newsletters. 
  • Add a promotional link at the bottom of your email signatures. It’s a more discrete method of marketing, but it can still help you cover all the bases. 
  • Share information about your referral program across all your social media accounts. 
  • If you have a customer portal, remember to add links or highlighted sections that talk about your referral program on the portal too. 
  • Don’t be afraid to ask for referrals in direct conversations with customers. 

For example, after someone has been a customer for a year, you might personally remind them of your referral program every six months.

Make your program easy to use and understand 

Clients often have short attention spans when browsing online. Once you have their attention, you want them to complete the action of referring someone to you before they leave the site. 

prosper insurance referral program

Make your referral recommendation process simple, or your customers will just leave and go elsewhere.

  • The golden rule is for your clients to refer a friend in the least number of clicks or taps possible. Avoid rerouting to another page where customers have to fill up yet another form. 
  • Give your customers flexibility in how they make referrals. Customers should have multiple options for sharing, including social media channels, email, and/or a unique referral link that can be shared almost anywhere. 
  • Customers should know exactly what you want them to do when they skim your referral landing page.  Do they know where and how they need to submit the referrals? Do they know they have options for how to share it with friends? Laying things out in three easy steps works well.
  • Lay out all the benefits clearly so customers know exactly what’s in it for them. Insurance companies, in particular, promote the intrinsic benefit of helping a friend get access to great insurance. 

A referral call to action is key to accomplishing this. We’ve created a comprehensive guide that shows you exactly how to create effective referral call-to-action buttons . 

Pro tip: Create a referral FAQ page that outlines program terms and common concerns, to eliminate other obstacles that may keep people from referring friends. 

  • The best FAQs address all the possible questions that your customer may have about joining the program.
  • Stick to simple and easy-to-read and understand responses. 
  • Avoid making the FAQs too wordy or too detailed.

Write notes of appreciation for successful referrals 

Human nature thrives on appreciation. Sometimes we can do things for others without expecting anything in return. But we always feel validated and valued when someone appreciates what we’ve done for them. It’s a great concept to apply in insurance referral programs.

  • Publicly thank customers who referred their friends in your email newsletters and social media accounts, when their friends sign on to become customers.
  • Privately recognize these successful referrals as well – send thank-you notes to existing customers when their friends become your new customers.

Use referral software to track, manage, and automate your program 

As you grow your agency and business starts to flow in, you may find your manual tracking methods no longer work very well. 

Manual tracking can also be inefficient if you have more than one business or insurance type on your plate. 

This is where referral marketing software comes in. The right referral software streamlines your program creation process and removes the hassle of manually managing your referral rewards program. 

Automation features can help you save time. You can set up manual tasks to run repetitively on their own, and spend more time on the more crucial task of converting leads to customers.

Thanks to the referral links it generates, referral software lets you track exactly where every referral came from and instantly issue rewards for successful referrals. 

You won’t need to track and trace every single referral and make sure they’ve been paid. This feature can be a huge benefit as you start to scale. 

Referral software also collects program data used to measure success and refine your program structure.  

Knowing where the kinks are in your strategy can help you figure out how to set things right. You’ll also learn which of your strategies are really moving the needle, so you can focus on replicating or scaling them. 

Customize your program and take advantage of automated tracking and promotional features.

Insurance referral program examples 

Now that we’ve covered the most important aspects of developing your own insurance referral program, let’s look at some real-life examples from top insurance providers. We’ve hunted down 6 clear examples from the insurance industry that show you how to practically apply the strategies that we’ve just explained. 

1. CNR Insurance 

CNR Insurance has a simple, elegant, but effective landing page for promoting their referral program. To pull you into the referral program page, they’ve used a bright blue button on the right side of every page where it’s easily seen. The button itself is titled simply ‘Refer a friend.’

CNR Insurance referral program button

The company showcases commitment to their customers and cleverly alludes to the loyalty they’ve received as a result of it – a nod to what appears to be stellar customer service. The program itself is laid out without much fluff, emphasizing how simple and easy it is. 

cnr insurance

CNR Insurance has chosen to use a form where visitors can quickly input all the necessary information required. Visitors are then directed to call a phone number or use another contact form (if preferred) to follow up. 

CNR Insurance’s referral program is a great example of how to woo customers on your website without any fancy tools. Placement and simplicity can work just as effectively.

Hiscox is an example of how to grab a customer’s attention straight off the bat with a benefits statement placed front. ‘Refer a friend to Hiscox and you could win one of ten $50 Amazon.com gift cards.’ is hard to resist or miss!

The benefits statement is followed up with a brief explanation of how the program works. 

While Hiscox doesn’t give a guaranteed reward for each referral, it offers the possibility of winning in a very convincing way. The brand has also used a contact form for the visitor to easily send referral information – including a space for the customer to personalize a message to their peer. 

Needless to say, the brand doesn’t have to spend anything for the mentions on social media – which is a great way to also get more exposure for their program.

hiscox insurance referral program header

Noblr has relied on a prominent placement and centralized design structure to capture interest in the referral program. 

Placing your content on the center of the page makes it easy for the visitor to read and scroll through content. Their eyes are not forced to go back and forth in different directions, which can be a distraction. 

Noblr has adopted possibly the most customer-friendly approach to getting referrals by adopting the link method. All the customer has to do is type out their email address and click the ‘generate link’ button to get a shareable link which can be copied and pasted anywhere. You can also use their Facebook button to share the same link directly to Facebook. 

Noblr has also listed the benefits of the program on the main page and added an FAQ section to address commonly asked questions. 

You’ll also see a clickable call-to-action on the bar right at the top of the website page which says, “ Refer-a-Friend and earn $25 for each friend who gets a quote! ” 

Noblr has effectively made use of the available space on the page for promoting the program without inundating the visitor with over-promotion.

Noblr referral program 1

4. Spivey Insurance Group 

Spivey’s landing page is similar in structure to that of CNR Insurance, but with an additional incentive of possibly winning $1,000 in a draw slated for end-of-the-year. This is on top of the guaranteed $10 per referral scheme. 

Spivey has also emphasized customer goodwill, together with a sense of community, to link positive feelings with the brand. In a bid to simplify the referral process, they’ve used a form where visitors can fill up all the details needed to refer a friend, peer, or family member.

Spivey referral program

Ethos has adopted a clean design choosing to emphasize how simple it is to make referrals on their program. The 1-2-3 step process of making referrals displayed on the site reflects that it only takes three easy steps to make a referral. That’s a great way to capture the interest of time-starved visitors who don’t want a run-around. 

ethos insurance referral program 3 steps

Ethos also breaks up content section-wise, varying background colors to sustain interest. You only need to type an email address and click the continue to get started. 

Also available on the same page are details of who you can refer, FAQs, plus a section devoted to the fine print visitors need to be aware of. 

6. Bagnall Shaw

Bagnall Shaw, an independent insurance agency in Pennsylvania, leads with thanks in their referral program: “There is no greater compliment you could give us than referring a friend or family member to our agency.”

The reward is front and center, including in the headline: customers earn a $20 Amazon gift card for every successful referral. The terms are clear as well, so clients know exactly what their friend must do (activate a new policy for at least a month) for them to earn the reward. And there’s no limit to the gift cards an existing client can earn! 

Referrals have been integral to Bagnall Shaw’s success, a fact they also mention on their referral program page: “Our business has grown to over 8000 customers… only through our client referrals and positive recommendations.” Bagnall Shaw stands as proof that a satisfied customer base and a way to mobilize sharing can pay dividends.

bagnall shaw

Start an insurance referral program 

Insurance referral programs can be a game-changer if you want to take your business to the next level. 

Do market research on the types of rewards your customers will appreciate the most and factor these into your reward programs. Promote your program across all your sales channels. Make use of NPS surveys to see how you’re doing, and to make changes if needed based on feedback.

And of course, make sure you’ve chosen the right referral software to maintain your program!

Aside from having a great program, the success of the insurance referral program can rest heavily on how great your customer service and relationship skills are. Appreciate your clients and focus on the relationship so your customers are just as vested in helping you grow your business. 

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Everything you need to know about insurance referral programs

Ask any successful insurance agent the most reliable way to grow and retain your book of business, and the one answer that may stand out is through referrals. That’s because introductions made by clients to people in their network who can benefit from their services earn high trust marks, and those new referrals are typically a good fit for your insurance appetite. A recent Nielsen marketing survey backs this up, reporting that a remarkable 89% of people trust a referral from friends and family more than any other source. This enables producers with strong relationships to connect with warm leads faster and close more policies quickly. 1

Simply leaving referrals up to chance isn’t enough to scale your revenue in a meaningful way. Turning customers into advocates starts with a strategic approach. If you’re ready for more referrals, this article walks you through best practices for supporting your referral marketing strategy to ensure your referral pipeline flows optimally.

What is an insurance referral program?

An insurance referral program is a form of marketing that encourages customers familiar with your agency and services to share their positive experiences with family and friends. While referrals can happen organically—for example, when something related to insurance pops up naturally during a conversation—a strong referral program is supported by various tactics that ultimately make it easy for clients to recommend you.

A strong referral program is a reflection of the superior customer experience you provide and the trust you’ve earned through nurturing client relationships . This means implementing or revamping a successful insurance referral program requires building strong client relationships, delivering on the customer experience, and using marketing and technology to your advantage.

Benefits of insurance referral programs

Earning introductions to new contacts from current clients requires effort, but the payoffs are numerous. In addition to their high trust factor, the marketing advantages of referrals include the following: 2

  • Referrals have a 30% higher conversion rate than those generated from other marketing channels.
  • Referrals that convert are more loyal, having a 37% higher retention rate than other marketing channels.
  • Referrals have a lower cost per acquisition than any other form of marketing.
  • Referred customers are four times more likely to refer a product or service to others.
  • Referrals can increase the effectiveness of marketing efforts by 54%.
  • Referrals are more likely to buy when learning about a service or product from friends on social media.

Best practices for supporting an insurance referral program

The goal of any insurance referral program is to capitalize on relationships and make it easy for clients to recommend you. How do you proactively go about it? By taking a multifaceted approach comprised of the following best practices:

  • Deliver outstanding customer service. At the base of every successful referral program is a positive client experience. Without it, you can’t build trust, and your referral program will stall. That means that from first contact and throughout the relationship, every client interaction should deliver reliable, responsive and consistent service . To get a customer satisfaction baseline, conduct a brief client survey to learn how satisfied a client is overall, if they have renewal intent and how likely they are to recommend you. Review the results and take action to improve the customer experience as needed.
  • Support client-facing touchpoints with technology . Clients want ease and convenience. Offering access to technology tools , such as online portals, chat platforms, online bill pay and claims-tracking tools, delivers the services clients need and want when they want them. Other positive interactions, such as being easy to do business with, influence positive recommendations.
  • Optimize with insurance referral tools and software. An effective insurance referral program benefits from using technology tools to track leads and reward customers. To accomplish this, you can use a software spreadsheet, such as Excel or Google Sheets, or license referral-tracking software through a third-party vendor. At a minimum, you want to be able to track the lead source, lead contact information and policy start date.

Another useful tool is an online form clients can easily fill out for referrals. You can embed a link to this form in various places: your client email campaigns, your email signature line, agency newsletters and more. Some tools, including Google applications, allow you to create the form and sync the data. If you’re collecting personal information, be sure the site is secure and consistent with your privacy policies. Nationwide appointed agents can create a listing on  Agency Locator  to help improve your online ranking, increase site traffic and drive qualified leads.

  • Interact with your clients frequently and consistently. The more quality interactions you have with your clients, the stronger the relationships may be. While there are numerous ways to proactively nurture client relationships , it’s important to be in touch throughout the client life cycle. Using insurance automation for sending communications or calendar reminders to check in periodically or schedule an annual review makes these tasks easier, and they are effective ways to remind clients you are on their team.

It’s important to personalize email messages to your clients’ needs and relationship stages. Nationwide’s Marketing Central library has great ideas to help you connect with clients, but to start, consider saying thanks for meeting with you; thanking them for their business; checking in to see how they are doing; offering tailored risk management tips on an ongoing basis; personally inviting them to an agency-sponsored event; requesting an annual insurance review; asking if they have anyone who could benefit from your services or would like to save money on their insurance—you get the idea.

  • Use social media to promote your insurance referral program. Referrals are more likely to buy when learning about a service or product from friends on social media. 3 With clients spending so much leisure time online, it’s a must to target posts on your preferred social media channels that promote your referral program to offer an easy way to take action.
  • Ask for online reviews. Online reviews are read by 87% of consumers searching for a local business, making them a powerful marketing tactic. 4 To get more online exposure, invite your clients to leave a review on your agency’s Google listing .
  • Show appreciation to participating clients. Showing appreciation to clients for referrals can be as simple as a note of thanks or token gifts, such as a magazine subscription or tickets to a local home builder’s show, or from a reward earned through a formal rewards-based incentive program. People are also motivated by money, so offering rewards-based gifts, such as gift cards, for referrals can effectively motivate clients. If you go this route, it’s important to adhere to your state’s rules and regulations on paying customers “finder’s fees.” Whatever method of thanks you choose, when someone goes out of their way to refer you, it’s important to acknowledge it.
  • Reward producers with a referral commission bonus. To keep your referral program top of mind for your sales team, consider offering a referral commission bonus .
  • Build referral reciprocity. To widen your potential for referrals beyond current clients, consider giving referrals to other local establishments you respect that complement the insurance products you sell. For example, car dealers, real estate agents, property management companies and travel agents all have clients that may need your services. By aligning with other area businesses and agreeing to refer each other when the opportunities arise, you are in a position to fill your referral pipeline while supporting other professionals in your community.

Grow through referrals

From delivering a memorable client experience to proactively seeking referrals through various marketing tactics, the benefits of a strong client referral program are tough to beat–the cost per acquisition is low, leads from referrals convert faster and have higher retention rates. The best time to get started is today, recognizing that building a strong referral program takes time and keeping at it.

Knowing marketing is a key driver to agency success, we offer our appointed agents access to a suite of marketing tools to promote your agency, manage your social media, keep up with marketing trends and more. To learn more about how we can support you, check out our agency marketing solutions .

Citations/Disclaimers

nielsen.com/wp-content/uploads/sites/2/2022/02/2021-Nielsen-Trust-In-Advertising-U.S.-sell-sheet.pdf

financesonline.com/referral-marketing-statistics/

annexcloud.com/blog/42-referral-marketing-statistics-that-will-make-you-want-to-start-a-raf-program-tomorrow/

serpwatch.io/blog/seo-statistics

The information included in this article was obtained from sources believed to be reliable, including subject matter experts, to help users address their own risk management and insurance needs. It does not and is not intended to provide legal advice. Nationwide, its affiliates and employees do not guarantee improved results based upon the information contained herein and assume no liability in connection with the information or the provided suggestions. The recommendations provided are general in nature; unique circumstances may not warrant or require implementation of some or all of the suggestions. Nationwide, Nationwide is on your side, and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. ©2023 Nationwide

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business insurance referral program

A recent study found that businesses using referral programs report 71% higher conversion rates than companies that don’t. This means an insurance client referral program could optimize your marketing efforts while building stronger client relationships and improving your bottom line.

Building a top-tier referral network takes front-end effort, but your business should see significant returns with the right program.

Let’s break down client referral program basics, the biggest potential benefits, and a checklist for establishing the perfect system.

What is a Client Referral Program?

A client referral program is a coordinated strategy that generates new client leads by incentivizing your existing network to recommend your business to their friends, family, and colleagues. Referrals can come from current clients, associates, professional employment organizations (PEO), consultancy services, and more.

How Can a Referral Program Help Your Business?

A client referral program helps you capitalize on positive experiences and relationships you have within your professional network to generate more business and warm leads. A referral program can significantly improve your business in a few key areas:

  • Lead generation and conversion: Data shows that referral programs generate a large volume of high-quality leads . They can also decrease a company’s cost of acquisition since word-of-mouth advertising is generally free or inexpensive compared to other marketing efforts.
  • Increased existing customer loyalty: If an existing client refers one or more clients to your business, they’re more likely to be long-term customers.
  • Exponential network expansion: As you receive more referrals, your network of potential customers, partners, and industry contacts increases. Each new client brings a critical asset to the table — a unique network of people who can benefit from the value you provide.
  • Higher quality standards: When your clients refer contacts to your business, it often means they believe you will deliver a high-quality product or service. This expectation and responsibility will help motivate any broker to constantly improve their offerings and the value they provide. 

A referral program does more than bring new customers into the fold. It improves your relationship with existing clients, supports your company’s network growth, and incentivizes your brand to continually focus on quality.

Businessman wearing a navy blue suit talking on his phone while sitting on his table.

How Do You Build a Client Referral Program?

Before you can begin reaping the benefits of consistent referral business, you have to build an effective program. Let’s discuss what you need to get your program up and running. 

1. Complete a Quality Assurance Check-Up

Before you start asking for referrals or brainstorming incentives, make sure your business is referral-ready. Specifically, you should review the quality of a few critical areas of your business:

  • Sales: While evaluating your sales team, don’t only focus on how well it converts leads into customers. You should also consider how well equipped your salespeople are to interface with potential clients. Are they helpful and personable with leads? Do they have the equipment they need to be successful? Do they need more training? It's critical for your sales team to represent your business well. 
  • User experience: Are you still working out kinks in your website or other client-facing applications? Now is the time to ensure that your user experience is as smooth and bug-free as possible before driving more traffic to each.
  • Customer support: Are you supporting your customers’ needs effectively and efficiently? Make sure you have the bandwidth to handle all your existing clients’ needs before taking on the needs of referrals. Any gaps in this area of your business will reflect poorly on you and your referrer.

Simply put, you should tackle your outstanding to-do list before bringing in new business.

2. Find Potential Sources for Referrals

After making sure your i’s are dotted, and t’s are crossed, you can begin brainstorming a list of potential referral sources. As previously mentioned, you should look beyond your existing client roster and consider seeking referrals from second and third parties, such as:

  • Brokers of different insurance products
  • Professional networking groups
  • Professional service providers, like banks and financial institutions, physical and virtual utility companies, suppliers, vendors and contractors
  • Professional employer organizations (PEOs)
  • Networking groups, like Chambers of Commerce, education and outreach programs, and philanthropic organizations
  • Consultants both inside and outside your industry

While you’re creating your list of potential referrers, you should also consider which will offer the most and highest quality leads. These sources are where you should focus the majority of your marketing efforts. 

3. Build a Referral Program Standard Operating Procedure (SOP)

A standard operating procedure (SOP) is a document your team can follow when working with a referred lead. You likely already have SOPs for sales, customer support, or claims departments, but you should also consider creating one for your referral program.

An SOP will benefit your program, clients and staff by making it easier for your team to ask for and follow up with referrals while streamlining the process for referrers. It should outline your process, rewards structures, branding information and basic boilerplate language employees can pull from during conversations. 

Most importantly, the SOP should prioritize making it as simple as possible for both the referrer and the person being referred.

4. Identify Referral Rewards

After you’ve nailed down the basics of your program, it’s time to identify rewards for referrers that will incentivize them without breaking the bank or shrinking your profit margins. Some potential rewards for referrers include:

  • Monetary rewards, like cash back, premium discounts, or gift cards
  • Raffle tickets for prizes or events
  • Donations to select charities
  • Tickets to events or outings, such as concerts and arts events, sports games or tournaments, company-sponsored networking events, and outdoor activities like hikes or fishing trips
  • Company merchandise, food, beverages, or other goods

Note: It’s important to consider whether insurance agents can give gifts for referrals in your state. In many states , insurance companies may only provide monetary referral rewards to parties who aren’t licensed to sell insurance products. This isn’t the case everywhere, and each state stipulates the types of rewards insurers can offer to clients and licensed colleagues alike.

One man is shaking hands with a businessman wearing a suit in an office next to two colleagues.

5. Start Advertising Your Program

Once you’ve completed the planning process, it’s time to roll out your referral program. This will look different for every company, but keep the following elements in mind as you design yours:

  • Consider a soft opening : Offer the plan to one or two segments of your network while you work out the kinks. You can then progressively introduce other networks to the program as you refine the system.
  • Develop a unique rollout plan for each networking group: Depending on the kind of contact you’re talking to, you may want to take an individualized approach like a call or a text or send out generalized marketing via channels like social media or email.
  • Consider scaling up your rewards program over time : Offer progressively larger rewards as contributors provide more referrals or as the length or value of referral contracts increases.

Whether you choose an all-hands-on-deck or a more simplified approach to marketing, you’ll need to create a general plan to attract people to participate in your program.

6. Seek Feedback and Improve Your Process

Once your referral program is in full swing, it’s important to evaluate it regularly. When you look for ways to improve your program, prioritize these three areas:

  • How successful your program is compared to your team’s effort 
  • Client and referral satisfaction with the process
  • Any new or applicable regulations or compliance requirements that may apply to your program

Consider evaluating your program quarterly, annually or biannually. Your schedule will likely depend on your company size, the age of your program, and its success.

Build a Blueprint for Success with BBSI

Building a quality referral program for your insurance business takes significant effort. However, it has the power to drastically improve your sales, profits, and customer satisfaction. And you don’t have to do it alone.

When you become a BBSI referral partner, you gain access to a team that will help you develop a referral program, as well as co-host, co-brand, and spearhead other valuable sales and marketing initiatives. With BBSI, you can also expand the services you offer your clients to include payroll, HR, business consulting, and more, creating more mutually beneficial relationships and providing more value.

Contact us to learn more.

Broker’s Guide to 10x Your Book of Business

Disclaimer: The contents of this white-paper/blog have been prepared for educational and information purposes only. Reference to any specific product, service, or company does not constitute or imply its endorsement, recommendation, or favoring by BBSI. This white-paper/blog may include links to external websites which are owned and operated by third parties with no affiliation to BBSI. BBSI does not endorse the content or operators of any linked websites, and does not guarantee the accuracy of information on external websites, nor is it responsible for reliance on such information. The content of this white-paper/blog does not provide legal advice or legal opinions on any specific matters. Transmission of this information is not intended to create, and receipt does not constitute, a lawyer-client relationship between BBSI, the author(s), or the publishers and you. You should not act or refrain from acting on any legal matter based on the content without seeking professional counsel.

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How to Start an Insurance Referral Program

By Nick Gallo

Digital advertisements are part of modern daily life. As a result, consumers are increasingly skeptical of many conventional marketing strategies, and it’s challenging for businesses to set themselves apart from their competition.

An insurance referral program can help you sidestep those issues by leveraging the trust individuals have in their personal networks.

Let’s discuss what you need to start your insurance referral program, including how they work, how to market them, and which examples to imitate. 

What is an Insurance Referral Program?

An insurance referral program is a strategy that involves incentivizing your clients or professional contacts to promote your business with their networks. You offer a reward for each referred lead that becomes a new customer.

It’s also common practice to reward the referral for signing up with their connection’s unique identifier. That can help increase conversion rates and make it easier to track your program’s success.

You can manage a referral program manually, but software solutions are often more efficient. They can automatically create unique sign-up codes, send and track referral requests, and help distribute your incentives.

For example,  ReferMe IQ  can send automated emails to your agency’s client list requesting referrals. If anyone accepts, the software can send an email from  their  address to their contacts recommending your business. When recipients sign up through a link in the email, ReferMe IQ can distribute rewards to both parties.

Benefits of Insurance Referral

Starting a referral program can benefit your insurance agency, especially compared to traditional business-to-consumer advertising strategies.

First, a recommendation from a trusted friend or family member makes someone more likely to become a paying customer.  Eighty-one percent of consumers  trust their friends’ and family’s advice over that of a business.

That suggests the way people decide which companies deserve their business has shifted. Every agency promotes itself as the best option, so a recommendation from a trusted connection can be a critical differentiator. 

Not only are referral programs better at creating quality leads than many traditional marketing tactics, but they’re also generally cheaper. You determine what incentives you’re willing to offer, allowing you to set your client acquisition cost.

In addition, referred customers are often more valuable. Because they have more trust in your business, customers tend to spend more, make additional referrals themselves, and remain customers for longer.

A  Harvard Business Review study  found that a bank’s referred customers were 18% more likely to remain with the bank and generated 16% more profits over their lifetime

Finally, a referral program can promote retention with your existing clients. Those who go out on a limb to refer your business may feel more inclined to maintain a relationship with you to avoid the appearance of backtracking.

Examples of Insurance Referral Programs

Let’s explore some examples of insurance referral programs to help you imagine how you might start one for your agency.

Client-Based Referral Program

Your existing client list is the traditional place to start building your referral program. Not only do they have direct experience with your products and services, but they also have personal connections with your ideal prospects.

ALINK Insurance Services  employs this classic approach. Each time someone requests a quote and indicates that an existing client referred them, the referring client receives a $10 gift card to Starbucks.

The referring client also gets one entry per referral into a monthly lottery for a $50 gift card and an annual lottery for $500. The referred lead doesn’t receive any rewards directly, but the agency donates $10 to Habitat for Humanity for them.

Business Partner Referral Program

You can also partner with professional contacts in other financial services, especially if you promise referrals in return as an incentive.

For example,  Brokers Edge  offers a training program to help its top-producing agents approach local Certified Public Accountants (CPAs) and establish a relationship that leads to mutual referrals.

Open-Ended Referral Program

Your clients and business partners are the  referral partners  most likely to send qualified leads to your business. However, you may increase the number of leads you generate by opening your program to the public.

For example, the  KCAL Insurance Agency  is running a referral program until June 2023. Anyone can participate and earn rewards.

Each time someone refers a friend through their unique link, they’ll earn one entry into a monthly raffle for a $50 gift card. If a referred lead purchases a personal or business policy, the referring party also gets $10 or $20, respectively. If someone refers ten or more clients, they’ll receive a one-time $100 gift card.‍

How to Market Your Insurance Referral Program

An insurance referral program can be a powerful lead-generation tool, but you need to promote it to see meaningful results. Assuming you’re looking for referrals from your existing customers, there are several ways to spread the word.

Generally,  email marketing  is the most effective option. It’s the easiest way to communicate directly with your client list and lets you personalize your messaging for different segments.

‍For example, consider emailing your clients a survey every six months about their willingness to provide referrals. To those that respond positively, you could send a follow-up email requesting a referral in exchange for a small reward.

To those who answer negatively, you can send an email inquiring about their dissatisfaction and attempt to address their concerns, hopefully reducing the chances that they’ll switch providers.

Social media is also an effective tool for promoting your referral program.  Sixty-five percent of consumers  report being interested in business communications through the channel. It’s also designed for sharing content with your network.

Finally, it’s a good idea to feature the program on your company’s homepage. That way, you can remind your customers of its existence each time they visit your website. 

Build Your Insurance Referral Program

Referrals are one of the most cost-effective ways to generate highly qualified leads. Leverage your network and start building a program today.

9 Easy and Effective Ways to Get More Insurance Referrals

business insurance referral program

When it comes to bringing more clients to your insurance agency, referrals are the most organic and inexpensive form of marketing out there. Many agents agree that referrals are their number one source for new business. Having existing customers recommend you to their friends and families is crucial for your ongoing success as an insurance agent.

Not only are referrals organic, but they're also much more likely to convert . They also typically stay longer and spend more than customers that you acquire using other means. Agents who get regular referrals build more stable businesses with higher revenues.  

If you're not convinced, here are a few statistics to check out. Referred customers often spend up to 25% more on their initial purchase and are more likely to make repeat purchases in the future. What's more, the lifetime value of a referred customer is around 16% higher than customers you acquire elsewhere.  

While referrals are an excellent source of business, many agents feel uncomfortable asking for them. No one wants to come off as pushy or irritating. The last thing you want to do is upset your existing clients. You might think that providing exceptional service is enough to encourage your customers to pass the word along to their friends and family members. That may be true in some instances, but it's not always the case.  

The truth is, people are often more willing to talk about their negative experiences than their positive ones. It's not that your happy customers don't want to help you out. It's just that they're busy with their own lives. They're not thinking about helping you grow your business. You have to be willing to ask. Read on for tips on how to get more referrals and what you can do if you don't feel comfortable asking your existing clients for some help.  

Tips for Getting More Insurance Referrals

To gain more customers via referrals, you have to be willing to ask. Here are nine tips that can help make asking easier and more effective.

1. Deliver memorable service

Your customers are your most important asset, not only for ongoing sales but also in terms of marketing. If you can get them to spread the word about you, it's more valuable than any form of self-promotion you can do.

To encourage your customers to tell their friends and families about you, though, you have to go above and beyond with exceptional, memorable service. No referral program will mean anything to your clients if your service isn't on point.

To provide exceptional customer service , consider doing some of the following:

  • Answer all of your clients' questions honestly and knowledgeably.
  • Respond quickly to requests, phone calls, and emails (don't leave your clients waiting for a response).
  • Go the extra mile and give your clients your cell phone number so they can reach you directly. As a bonus, they can share your cell number with referrals, making it that much easier for new prospects to reach you.
  • Follow up with your clients during and after the sale process.
  • Exceed your customers' expectations. Loyal customers are the ones most likely to advocate for your business and deliver referrals.

When you provide consistent, top-notch service to your clients, they're much more likely to refer you to others they know, especially if you ask.

2. Train other producers to deliver great service

You may not be the only one doing the selling in your agency. If you've got sub-producers working for you, then you need to ensure they're able to deliver the same level of customer service you do.

This is true whether those producers are focused on sales, service, or both. They should be prepared to exceed customer expectations at any stage in the process so there's no drop-off in the customer experience. If you and your team reach that level consistently, your customers will be eager to tell others about your agency.

3. Leverage a product list

If you don't already have one, now is the time to create a complete product list that outlines everything you sell. Place that list on your website or refer your customers to it. Go above and beyond by walking them through it. It's a simple, effective way to make your clients aware of what you have to offer, and it can help with cross-selling.

That's not all, though. Your customers might not be shopping for homeowners, auto, or life insurance when they buy their particular policy, but they may know others who need those products. If you take the time to share all of your services, they'll know just who to send their friend or family member to for their insurance needs — you!

4. Pick good timing

They say that timing is everything. This is certainly the case when it comes to asking for insurance referrals. Sure, what you ask and how you ask are vital. But knowing when to ask is just as important.

So, when should you ask for referrals? Start by making sure you know when not to ask. For instance, never ask for a referral during billing or as a customer is in the beginning stages of filing a claim. You also might not want to ask for a referral right after you underdelivered on a promise you made to your customer. After all, you wouldn't ask your boss for a raise right after you missed the mark with an important project.

Instead, try to time your requests appropriately. Wait until you know your client is feeling optimistic and happy with your service. If they're telling you what a great job you did, how happy they are, or how much they love your service, that's a green light to ask for a referral. When your client is expressing their satisfaction, seize the opportunity. If they're happy with what you did for them, ask them if they'd be willing to refer someone else they know who could benefit from what you have to offer.

One thing to keep in mind — you certainly can ask customers for referrals via an email or phone call. The best time to do it, however, is when you're face to face. Research has shown that people are 34 times more likely to say yes to an in-person request than one made over email.

5. Track and reward referrals

If you're working with a team of producers, it may be helpful to create a system that stirs up a little healthy competition for referrals. To do that, you can track how many referrals each producer generates, along with the number of those referrals who actually become customers.

With that information, you can track conversion rates for every producer's referrals. Look for fun ways to reward producers who excel in this area or anyone who improves on their referral total or their conversion rate each quarter.

6. Set up a rewards program

People love free stuff, so rolling out some incentives could prove to be highly effective. Establish a referral program that offers rewards to your current customers when they refer people they know to your agency.  

For every referral, offer a small gift or gift card to your clients. Another option to consider is making a charitable donation to a local nonprofit for the referrals you receive. Incentives like these can excite your loyal customers and turn them into brand ambassadors for your agency. Just be sure to check your state and local laws first. Some states have regulations regarding certain types of rewards.

7. Make it easier for your clients to send you referrals

The process of sending referrals your way should be straightforward for your clients. Don't make them search for the right information — make it loud and clear. Put referral links in your email signature, so all they have to do is click the link and fill out the referral info.

You can also create simple referral cards for your clients. These are similar to a business card but, in addition to your contact information, there's a space for your customer to write their name. They then give that card to their friend or family member, who presents it back to you when you meet with them. When you get the card back, you can reward the original customer for their referral.

Even if you don't use them in conjunction with a rewards program, referral cards can make it easier for your current clients to refer others to your agency.‌

8. Build mutually beneficial relationships

As an insurance agent, you're part of your local business community. Valuing your part in that community can go a long way toward building your long-term success.

Your business relationships can be mutually beneficial, allowing you to send customers back and forth. Think about the local real estate agents, car dealerships, financial planners, and others whose customers need insurance. Likewise, your customers may need their services.

Taking time to build relationships with other local professionals who can refer their customers to you (and you to them) can be incredibly helpful. Carve out time in your schedule to attend networking events, trade shows, and other local opportunities. Carry extra business cards with you so that you can hand them out to other business owners you meet — and ask for their cards in return. Together, you can help one another grow and thrive.

9. Let data drive your decisions

If you're doing all of the above and generating a steady stream of referrals, that's great. But do you know how well that referral program is working? You need a simple system in place for measuring how effective your program is and how you can improve it.

Start by tracking the basics for your existing customers. How long are they staying with you? What have their claims experiences been like? Have they filed any complaints? Not only can you use this information to better serve that client, but you can also use it to determine which clients are happiest (aka, those most likely to give you a strong referral).

When it comes to the referrals themselves, be sure you're tracking which methods are working best. Which referral sources seem to generate the best leads? Which producers are most successful at following up? Are rewards effective? Gathering and analyzing data will help you to ensure you're making sound decisions for your insurance business.

How To Get More Comfortable Asking for Referrals

It's natural to feel nervous asking your current customers for referrals. Most insurance agents feel a little awkward at first. The best way to get comfortable is to keep asking. As you continue practicing, asking will become more natural.  

Now, keep in mind that asking for referrals, even if you've delivered exceptional customer service and nailed the timing, won't necessarily work immediately. But you do need to plant that seed in your customer's mind before you start seeing the fruits of your efforts. In other words, the more you introduce the idea of referrals to your customers, the more likely they'll be to take action.  

Before you start asking customers, though, you should ask yourself a few questions:

  • What have I earned so far? For a customer to refer others to you, you have to earn their trust. They should know the value and benefits of your solutions. Earning that trust is vital before you ask for referrals.   ‍
  • Have I done anything other than make a sale? Have you provided exceptional customer service or added value to the overall experience?
  • On a scale of 1 - 10, how strong is our relationship? Building relationships with your customers is crucial. The better your relationship, the more likely those customers are to give referrals when you ask. ‍
  • If I were to ask for a referral right now, would it be awkward? At first, asking anyone for referrals can feel awkward, no matter how strong your relationship is. Consider the situation, though. As mentioned above, there are good and bad times to request a referral from a customer. If you underperformed or your customer is upset, asking for a referral could feel awkward. If your customer is happy and praising you, it's likely a good time.   ‍
  • Why would this customer want to give me a referral? Again, consider the situation. Did you go above and beyond for the customer or provide something of value? Have you given them a reason why they should give you a referral?

Don't Forget to Show Appreciation

Referrals are incredibly valuable. After all, they're the most inexpensive way to gain new, quality customers. Always show your appreciation to those clients who send new customers your way. You might also consider keeping them up to date with the progress you make assisting their referrals. Doing so can help to make them feel more involved and valued.  

Another way to show appreciation for the referrals your customers provide is to send a personalized thank you message. Send them an email or mail a card that expresses your gratitude for their assistance, and let them know just how much their actions help your businesses. When your customers feel truly appreciated, they may be more likely to send even more referrals your way.  

Don't Depend the Future of Your Business on Referrals

Generating leads through referrals can take some time. So long as you stick to it, though, you'll start to see your efforts pay off.  

While referrals are an excellent way to earn more business, they're not your only option. When you're in between leads and referrals, you can leverage Nectar. Using Nectar, you can purchase quality leads for the products you sell.

Nectar doesn't buy leads from third-party sites and then resell them. Instead, we generate fresh leads using our own sources. We connect health, life, and Medicare insurance shoppers with you by matching what they're looking for with what you have to offer. After all, bringing together compatible customers and insurance agents makes the process better for both parties. Customers get a more personal, higher-quality experience, and the agent is more likely to gain new business. It's a win-win for everyone.

Are you interested in purchasing real-time insurance leads to help boost your business? Nectar makes the process easy. Sign up with Nectar today to get started.  

This article reflects the features of Nectar as of the date of publication. Features are subject to change at any time. This article is meant for informational purposes only, it is not a guarantee that using Nectar will help you achieve specific business or financial results and is not intended to serve as the sole recommendation for any business financial decisions.

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business insurance referral program

How To Start Your Insurance Referral Program

Insurance referral programs are the most cost effective and easies way way to grow your insurance agency. Learn how top start your own insurance referral program in this detailed guide.

business insurance referral program

As an insurance agency, you are always looking for innovative ways to acquire new customers. There are lots of different routes you can take, but one of the most cost-effective (and impactful) strategies you can follow is to implement an insurance referral program.

When you implement a referral program, your satisfied customers become powerful marketing partners recommending your agency to their friends, family, colleagues, and acquaintances in exchange for incentives and rewards.

A referral program doesn’t just bring in new customers; it can reward customers that you already have on your books, improve retention rates and build your reputation at the same time. Let’s look at what insurance referrals are and how they work.

What are insurance referrals?

An insurance referral program is a strategy insurance agents use that prompts their existing clients to refer others to their insurance agency. You can view a referral program as incentivized word-of-mouth marketing. Your happy customers become advocates that recommend your insurance company to the people they know in exchange for an incentive, like cash rewards, discounts, or gift cards.

When an existing customer or partner refers someone to the agency, the agency records the referral and tracks the progress of the lead. If the referred person becomes a new customer and meets certain criteria (e.g., purchases a policy), the referrer becomes eligible for the promised reward.

The Benefits of Insurance Referral Programs

An insurance referral program is a low-cost yet highly effective strategy that can bring promising new leads to your insurance agency. If you use an automated referral platform, the entire referral process becomes even easier. Considering that all you’ll need are a few innovative rewards, some software, and a little promotional effort, the return on investment is huge.

Here are a few reasons why you should consider implementing an insurance referral program:

Referral programs are cost effective

An insurance referral program taps into your existing customer base to refer leads to your agency. These referrals come with the advantage of word-of-mouth marketing, which is not only very affordable but extremely effective.

Referral programs spread the word about your agency

A successful insurance referral program motivates your existing client base to spread the word about your agency far and wide. Not every friend or family member will sign up, but your existing clients will still act as valuable brand ambassadors that promote your business at every opportunity, bolstering your reputation.

Referrals increase trust and conversion

Referred leads tend to have higher conversion rates compared to other leads because they trust the recommendations made by their peers. According to Nielsen research , 92% of consumers trust referrals from people they know and are 400% more likely to buy a product or service when they’ve been referred by a friend.

Referrals capitalize on similar preferences

People who share similar backgrounds, preferences, and lifestyles often make similar choices. Your customers choose your business because it suits their lifestyles and needs. Chances are, it will suit their friends and family, too, increasing the odds of conversion.

Referral programs can convert across insurance types

Insurance referral programs can be applied effectively to all forms of insurance, like life insurance, home insurance, auto insurance, business insurance, and real estate insurance, generating great results across multiple insurance categories.

Referral programs create cross-selling opportunities

Because of the trust your existing customers have created, referred customers are more likely to consider bundling multiple types of insurance coverage.

Referral programs come with enhanced customer retention

Retention rates for referred customers are up to 37% higher , leading to higher customer lifetime value. Their initial trust in their friend’s recommendation solidifies their commitment to your services.

Referral programs strengthen existing customer relationships

Customers who refer your agency to their friends develop a stronger emotional connection with your brand. Their involvement in your success nurtures a deeper sense of loyalty and ownership in your company.

Referral programs create actionable data insights

Insurance referral programs are extremely trackable, enabling you to collect valuable data about your program’s performance. This data-driven approach helps you identify your most effective lead sources and refine your strategies and incentive program accordingly.

Best Practices For Creating an Insurance Referral Program

The insurance industry is extremely competitive, which is why it’s important that your referral program follows best practices that set the strategy up for success, including:

Making sure that your customers are satisfied

A successful referral program hinges on having happy customers to begin with. Make sure that your customers are satisfied with the products and level of customer service they receive. Every insurance agent should ensure that a positive customer experience is their top priority.

Know your best marketers

Not every customer will be a great referrer. Take a close look at your current customers to find the best advocates for your agency, e.g., customers who have been with the company for several years, who have answered NPS surveys positively, or customers that have organically referred others to you in the past. Your happy customers should pilot the referral program to get a clear idea of its success before rolling it out to others.

Find the best rewards for your current clients

Customers are motivated by different rewards. Some would love a gift card; others prefer a discount. The key to finding a reward that triggers referrals is to do your research. It’s also important that the reward doesn’t outweigh the actual benefit of acquiring the customer. Lucrative cash rewards can quickly drain your profits, even if new customers are rolling in.

A referral commission bonus works well for customers who prefer immediate gratification. Gift cards and cash can be expensive in the short term but have the best results. Discounts work well for customers that really know their insurance program inside and out and like long-term benefits.

Try to reward your existing customers as well as the new customers that are joining. It makes switching to your agency an “easier sell” and can act as a really effective growth engine for the company.

You can also try using a tiered structure where rewards increase in value when the number of referrals increases. It can be extremely motivating for your customers and can effectively turn happy clients into a high-powered sales team.

Promote your program

While referral programs are low-touch, they aren’t completely hands-off and need to be promoted. Customers need to know about the program before they can start participating in it. Make sure that there is a page on your website and in your marketing materials dedicated to the referral rewards program where interested customers can find out more information. Post information on your social media accounts and customer portal, too.

Send regular promotional emails that direct customers to the referral page and show them how to refer clients and claim incentives. If possible, include links to all of your customer communication as organically as possible, e.g., make sure that agents include a link in their email signature.

Keep it simple

Your referral program should be as simple as possible. A complex program with multiple rewards, conditions, actions, and touch points isn’t going to be as effective as a simple structure that offers a clear reward for a straightforward action. Try to make referring a friend or acquaintance as simple as possible and provide a few options to customers to make the actual referral, e.g., sharing a unique referral link, completing a simple form, or tagging someone in a social media post.

Make sure that customers know exactly what counts as a referral, how to submit a referral, and how to claim their reward.

Use referral software

Manual referral programs and tracking is resource-intensive and can take away agents’ valuable time, especially if you sell multiple types of insurance. Referral software programs can streamline the entire referral process, including issuing rewards and encouraging referrals:

  • Automation: You can automate manual tasks, freeing up your insurance sales team to focus on converting the leads that come in instead of endless admin tasks.
  • Trackability: Referral software can generate unique links that make it easy to track the source of your leads, eliminating disputes and reducing red tape when issuing rewards.
  • Scalability : Tracking and issuing rewards are automated, which makes it easier to scale the program.
  • Insights : Referral software constantly collects data. You can tweak your rewards program according to the information you’ve collected.

With the right referral software partner, you can constantly change and adapt your rewards program and ensure that customers constantly feed your sales funnels with new leads. The more data you collect, the more effective the program becomes, enabling you to acquire more referrals at a lower cost.

Why Choose HelloReferrals?

If you’re interested in creating a referral rewards program of your own, it’s time to get in touch with HelloReferrals.

HelloReferrals is a software platform designed to help businesses increase their referrals and grow their customer base through automated referral marketing. It provides tools and features that streamline the process of generating and managing referrals from various sources.

Here’s how HelloReferrals works:

  • Automated Referral Program : HelloReferrals offers an automated referral program that helps you generate referrals without requiring constant manual effort. This means that while you focus on your primary business activities, the software handles the referral generation process.
  • Effortless Referrals : The platform automates referral campaigns that work continuously to bring in new referrals. This eliminates the need for you to manually ask for referrals and follow up with potential leads.
  • Reward System : HelloReferrals enables you to incentivize successful referrals. When a customer or contact refers someone to your business, you can reward them with automated VISA eGift Cards or other customized rewards as an appreciation for their referral efforts.
  • Quick Setup : Setting up your referral program is made simple through the platform’s campaign builder. You can create a referral landing page, set up referral rewards, configure auto-responders, and establish referral campaigns within a matter of minutes.
  • Referral Campaigns : The software offers pre-designed and customizable referral sequence campaigns. These campaigns are designed to generate referrals throughout the year, allowing you to focus on your core business activities while referrals come in.

Referral Sources : HelloReferrals makes it easy for your customers or contacts to refer others through various channels. Referral requests can be initiated through email, mobile devices, your website, and social media platforms.

The goal of HelloReferrals is to help your business significantly increase referrals and grow your customer base by automating the process and making it easier for customers and contacts to refer others. HelloReferrals provides a streamlined way to manage referrals, track successful referrals, and reward those who participate in the referral program. You can enjoy a low-touch, high-return referral program that provides you with all of the data you need to refine your campaigns and unlock the power of word-of-mouth marketing.

Start Your Free Trial Insurance Referral Program Now >

In Conclusion

Incorporating an insurance referral program into your agency’s marketing strategy has several benefits – over and above the new clientele your customers will bring in. A good referral program can fortify your existing client relationships, bolster your agency’s reputation, and enhance customer retention rates – if they are set up well. Make sure that your insurance referral program is easy to understand, easy to access, and has the right reward structure to motivate your customers.

Get in touch with HelloReferrals to set up an automated, easy-to-understand, and simple-to-share rewards program for your current clients. You’ll not only access new clients but engage and reward your existing loyal customer base as well.

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Building A Business Insurance Referral Program

March 12, 2020

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Launching a referral program for business insurance is a pain in the ass. We did it anyway.

Today, we invited a few thousand of our most loyal customers to our newly launched customer referral program. So what? Most modern companies already have referral programs. Is this really deserving of a blog post? But, what we learned is that building a referral program in this field of insurance regulatory landmines is no small feat.

The insurance industry today is a layered cake of regulatory updates amassed over decades, and in service of protecting the customer and establishing guidelines for the broker/customer relationship.

The intent is valid—there’s a lot of money and a business’s reputation on the line. It makes sense that only trained and licensed professionals should be accountable for the recommendation and selling of insurance products.

The challenge for a customer referral program in this industry, though, is that the regulations cover a number of similar topics like solicitation, discounts, and incentives. And, these regulations vary state by state and have not been as dynamic as an internet-driven world like ours really demands.

To build Thimble’s customer referral program, we had to pore through each state’s regulations which cover everything from who could and could not be paid, how much could be paid, the timeframe over which limits applied, or even whether you could do this at all.

We built various models and spreadsheets for looking at all these regulations with the goal of finding the least common denominator that would apply the largest number of customers across the US.

Refer a business owner. Get a $10 gift card.

Our goal was to build a program that was simple and easy to understand, and we think we’ve done that. Our effort to find the least common denominator across states resulted in the solution to offer a $10 gift card to a referrer, not the person being referred (the “refer-ee”) when the referee becomes an active Thimble user.

Many states don’t allow you to provide cash, so we stopped thinking of using Stripe or another service to do an ACH payment into your bank account. Instead, we’ve partnered with Tremendous who can fulfill a variety of digital payouts ranging from Visa Cards to gift cards across some of the best retailers in the country. Integrating with their platform was a walk in the park.

insurance coverage

We’ve limited it to $50 total per calendar year per user because many states have upper limits of how much you can provide a referrer in a given timeframe. We’d love to give out more, but this felt like a good balance.

We can’t pay the referee because that is seen as a discount towards the purchasing of insurance, in which case our intent could be seen as an inducement to purchase what might not be the right insurance for someone. Again, while we’d love to pay new business owners who choose Thimble, at the moment we simply can’t due to regulatory constraints.

We’ve launched in 25 states and are working hard to unlock the remaining 25 whose processes are more difficult or unclear.

There are two reasons why we felt really strongly about creating a referral program:

1. Customers love us and were recommending us.

Being a startup, we’ve been hyper-focused on collecting and monitoring our customer feedback. Last year, we interviewed over 300 Thimble customers, revamped our entire customer review platform, and we track our NPS (Net Promoter Score) weekly.

Our customers seem to really love what we’re doing and are very vocal about it. We have an “Excellent” rating on TrustPilot, a 4.8-star review on the App Store, and an NPS score of 82!

Obviously, this is good business, but if our business owners are already telling their network about their Thimble experience we might as well reward them for doing so.

2. A referral bonus goes a long way when you sell insurance at this price.

To give $10 back on homeowner’s insurance wouldn’t make a big impact. In fact, giving $10 back on a traditional annual business insurance policy doesn’t make much sense either. However, when you’re the only company that offers General Liability insurance for as little as $5 an hour, ten bucks goes a long way.

Even if you’re not in insurance industry, I hope this post was helpful. Our customer referral program doesn’t recreate the wheel, but it definitely was a challenge designing one intended to go down the cobblestone path of our industry. It’s clear though that even in 2020, “internet companies” are only scratching the surface of some of the most regulated and complex industries.

And, if you’re a Thimble customer and you’ve read this far, we truly appreciate it. Hopefully, you have access to the referral program by now and choose to share Thimble with a fellow owner like yourself.

Written on March 12, 2020

Our editorial content is intended for informational purposes only and is not written by a licensed insurance agent. Terms and conditions for rate and coverage may vary by class of business and state.

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The 6 Best Referral Partners for Insurance Agents

Best Referral Partners for Insurance Agents

Lorraine Roberte

Did you know that 68 percent of marketers say referral marketing is the best way to get your business on other people’s radar?

Some insurance agents develop a referral program that rewards clients for recommending their business (think discounts, freebies, and the like). While this strategy is effective, there’s another one that’s just as much–if not more–effective. And that is referral partner marketing.

With this type of marketing, you get potential clients by building strong, reciprocal relationships with other professionals in your niche. Over time, and with trust and shared experience, your referral partners become a consistent source of business growth.

Below we take a look at the best referral partners for insurance agents and how to bring them into your professional network.

Who Are the Best Referral Partners for Insurance Agents?

Insurance agents need referral partners that work with and understand their clients. Here are six go-to sources that will be your best referral partners. 

1. CPAs and Financial Advisors

Accountants and financial advisors are invaluable referral partners for insurance agents. Their clients trust them to manage their wealth. As an insurance agent, you can help them protect that wealth. CPAs might refer clients for: 

  • Business income insurance
  • Workers’ compensation insurance

When partnering with a financial professional, demonstrate how you can give their clients a comprehensive approach to growing and protecting their assets. For example, if you specialize in property and casualty insurance, let them know your coverage can save their clients money if an accident happens.

Note that professional referrals by a CPA face an increased amount of scrutiny . Insurance agents should take care to produce thorough, accurate work for a CPA’s client. CPAs can face liability claims for a negligent referral, so these professionals would be eager to work with you if they know they can trust you. You can make a good impression by giving them proof of your license, client testimonials, and professional references.

2. Lawyers 

Lawyers are an excellent source for insurance referrals because they tend to be well connected in their community. 

New business owners especially rely on the wisdom and advice of lawyers to protect themselves from unforeseen events that your insurance may cover. Types of insurance coverage lawyers may refer to you include: 

  • Employment practices liability
  • Errors and omissions insurance
  • Directors and officers insurance

Be sure to find lawyers whose practice and expertise align with your insurance offerings. For example, a business lawyer would naturally be a benefit to an insurance broker providing general liability insurance to construction companies .

With any partnership, it’s important to demonstrate your value before asking for a favor. Remind them that you’ll be able to recommend clients that need assistance with liability claims.

3. Mortgage Lenders and Loan Officers

Mortgage lenders and loan offers are excellent referral partners for insurance agents because they’re seen as trusted advisors. A lender can refer a client in need of:

  • Commercial property insurance
  • Builder’s risk insurance
  • General liability insurance

As an insurance agent, you can add value to mortgage lenders and loan officers by increasing their chances of closing a deal. To fund a commercial property or construction project, loan officers need their buyers to acquire builder’s risk insurance and general liability insurance. Make your services readily available by offering binders and quotes with a quick turnaround. The nature of this partnership can result in long-term business for both parties.

4. Payroll Services & HR Companies

Payroll specialists and human resources companies are another valuable addition to an insurance referral program. They work directly with businesses that are hiring and need help with a variety of insurance administration tasks, like handling claims and workers’ compensation enrollment. 

Payroll or HR companies may refer customers to insurance agents for coverage like: 

  • Professional liability Insurance
  • Workers’ compensations insurance

If an HR company is outsourcing for a small business, they can recommend you as the insurance agent to help that new business learn about their insurance requirements. In turn, you can offer competitive insurance quotes for their clients and refer your clients to their service.

5. Realtors and Real Estate Agents

Realtors and real estate agents are ideal referral partners because they serve property owners who are very likely to need insurance at some point. They can recommend their clients to you for insurance products like: 

  • General liability insurance 
  • Business interruption insurance

Businesses look to realtors for recommendations and expertise at every step of the process, including coverage. Building a professional relationship with realtors allows you to benefit from the trust they’ve already established with their clients, often with no financial cost to your business.

Remember that this partnership should be mutually beneficial. As a skilled insurance agent, you can help realtors evaluate risks, determine the cost of coverage, and offer competitive insurance quotes to their clients.

6. Other Insurance Agents

One of your best sources for referrals is other insurance agents. Individuals and businesses need life insurance, auto insurance, business insurance, and more. More than likely, you’re not able to service all the coverage needs of your clients.

Partnering with a professional that knows your industry can help your business grow faster and keep your clients happy. Another insurance agent could refer clients needing: 

  • Commercial umbrella insurance
  • Commercial auto insurance

If you’re an agent that provides errors and omissions insurance to construction companies, consider developing a partnership with an agent that provides commercial vehicle insurance for construction sites.

How Do Insurance Agents Get Referral Partners?

Now that you know who to reach out to, here are eight actionable steps you can take to find these quality partners, bring them into your insurance referral network, and incentivize them to refer you to their clients.

  • Develop a social media presence to market your insurance referral program to potential clients and partners.
  • Connect with referral partners on LinkedIn , or even host a webinar with leaders in your field.
  • Create a dedicated website landing page that answers FAQs and details the benefits of your program. This can make your referral process a lot easier and improve your customer experience.
  • Remember to provide a link to your referral program anywhere you market your service online. You can even include it in your email signature to make contact easier.
  • Attend local networking events , such as real estate and accounting conferences, where you’re likely to meet your ideal referral partners. Bring business cards with your phone number and other contact information. 
  • Follow up with potential partners , but don’t be so quick to talk about your rates or turnaround times. You want to be genuine and show them you care about helping their business and clients.
  • Provide your referral partners with attractive incentives as a part of your referral rewards program. It may be beneficial to offer gift cards or even charity donations, but remember to consult your state’s anti-rebating laws. More than anything you should add value by offering quality leads.
  • Consider using referral software to keep track of your referral sources. Referral software can manage your rewards automatically and give you data on your top referrers. This helps you identify strengths and weaknesses in your referral program, as well as increase retention rates.

Other Ways to Get Referrals for Insurance Sales

While a network of professional referral partners is likely going to be your biggest referral source as an insurance agent, there are other tactics to bring in more business. Here are some ways to drum up clients, especially when times are slow. 

Boost Your Online Ads

If you want to bring in new clients , you must promote, promote, promote! Chances are, you’ve already created promotional posts for your business and shared them with your followers. This is great, but if you want a little boost, you can push out paid ads to really get your name out there.

Google, Facebook and Instagram let you run paid advertisements. Use them to promote your referral program to a wider audience. These platforms let you set a budget on ads, so it’s only as expensive as you want it to be. 

And you don’t have to advertise on all the platforms. Just choose the one or two your potential clients are most likely to use. If your clients tend to be older, you may have better luck advertising on Facebook over Instagram.

Utilize Your Client Base

As an insurance agent, customer referrals from existing clients are often the first source of quality insurance referrals. Current clients know your strengths, trust your expertise, and can communicate these points to others in their personal and professional circles.

If you plan to offer a referral rewards program to current customers, you need to know how likely they are to recommend your business. You may be able to gauge this in person, but you can also send out a survey that asks clients to rank how satisfied they are with your services. 

The happiest ones are the most likely to tell their friends about you. For those folks, create an incentive program that gives them a discount, freebie or some other kind of reward for recommending you. One good idea: Give your clients one month free of something—be it their insurance coverage with you or a subscription to Blue Apron or other services—for each successful referral.

But make sure to note: Your state might have limits on the type and amount of rewards you can provide, as per the National Association of Insurance Commissioners . Do your research to ensure your referral rewards don't violate anti-rebating laws.

Don’t Underestimate Friends and Family

According to Nielsen , a global audience research firm, 88 percent of consumers said they trusted word-of-mouth recommendations from people they know more than any other channel. 

Likewise, your friends and family can be a spokesperson for your agency. There is probably no one more willing to sing the praises of your work than a proud momma and other people who want nothing more than for you to succeed. 

They’re especially helpful if you’re a new insurance agent without experience or social proof to advertise to your audience. A recommendation or social share from a family member goes a long way in building brand awareness. Let them know that you’re open to new clients and encourage them to interact with your online posts.

Don’t Miss Out on Getting Referral Partners

Whether you’re a solo insurance agent or a small brokerage looking to generate new leads, it’s more than worth it to develop an insurance referral program. You’ll have the best shot at success if it mutually benefits your business, clients, and partners. 

Referral partners not only help you get more clients, but they also help you meet more of your clients’ needs. This can make you an even more trusted advisor and keep your clients coming back. 

Now that you know all about where to find the best referral partners, all that’s left to do? Get out there and start networking! 

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8 Best Insurance Referral Programs Examples

For an average Joe on the street, telling one insurance broker apart from another is impossible. Around 92% of people trust friendly recommendations before buying something, and insurance agencies leverage them perfectly.

Abdul Wahab

Abdul Wahab

8 Best Insurance Referral Programs Examples

Insurance isn’t the most frequently talked about subject within social circles. Being a preventive measure to worst-case scenarios, insurance is rarely discussed on coffee tables unless someone asks for it. People need insurance more than ever, whether it’s to entrust their physical well-being or safeguard their hard-earned assets.

But with today’s fragile social fabric, trust is the hardest to earn. With only 27% of consumers deeming insurers trustworthy, making your spot as a credible insurance franchise can be challenging.

With distrust of sponsored and celebrity endorsements, insurance companies employ referral marketing programs to win over new customers. While the strategy has worked flawlessly for top fintech brands , it may need tweaks and upgrades to suit insurance brands. Review these 8 successful insurance referral program examples to sharpen your referral strategy.

Significance of Referral Marketing in the Insurance Industry

With the ever-increasing cost of sponsored marketing and consumers’ distrust of social media ads and celebrity endorsements, most marketers fail to mold the audience’s purchase behaviors in their favor. Fintech companies are gradually cutting their social media marketing budgets, with some reporting no noticeable decline in their marketing performance.

When it comes to marketing, insurance agent pose pretty much similar reservations with their advertising campaigns as other financial institutions. Here are a few reasons why modern marketing strategies are unfavorable to new and pre-established insurance institutions:

  • As the competition between insurance providers gets more intense, the marketing costs in paid searches and affiliate programs have also inflated. Wordstreams reports the average cost per click in paid search marketing at $54.91 in 2022.
  • Institutions with huge above-the-line marketing budgets and in-house SEO specialists import free traffic as paid leads, making it difficult for new businesses to acquire leads at a lower premium.
  • As an industry highly regulated by health, assets, and pension laws, insurance companies must adopt a more cautious approach to customer acquisition than unregulated sectors.
  • Unlike fashion, automobiles, or interior design, insurance is the last thing on people’s minds. Generating organic word-of-mouth recommendations on a subject that’s barely discussed unless led by a scrappy situation.

While referral marketing isn’t entirely off the charts for insurance companies, it’s the least leveraged strategy. With people’s lives and hard-earned assets at stake, endorsing an insurance company to friends and family will have dire consequences in case of a wrong choice.

In a market that’s widely based on trust and social standing, employing the right referral program can help you improve brand awareness, develop credibility, and acquire new customers. Here's everything you need to know about insurance referral programs for effective results:

  • Lowering customer acquisition costs. Referral marketing leverages existing customers to propel positive word of mouth and refer high-quality leads to your platform.
  • Customers that are otherwise less inclined to share your products and services can be incentivized to become valuable brand advocates.
  • Leads acquired through referral programs have a higher chance of becoming actual customers. People are four times more likely to purchase from a brand referred to by their peers.
  • Once you configure the underlying mechanics, insurance referral programs can be applied to any form, e.g., home, auto, business, and real estate insurance.

8 Successful Insurance Referral Program Examples

Be unique to stand out. Whether you’re selling tangible products, SaaS subscriptions, and insurance packages, let your audience know what you stand for. Highlight unique propositions that set you apart in the league, hopefully driving organic word-of-mouth recommendations.

While positive referrals can bring you quality leads, turning them into customers, keeping them on board, and motivating them to be your advocates requires top-notch services and exceptional customer support.

While learning top referral program ideas set you up for possible success in your pre-launch campaign , there’s no one-stop-shop solution to your insurance business. Whether you aim to build your marketing campaign from scratch or effectively manage your referral program, review these eight successful insurance referral program examples to keep the leads coming.

Square One stands out as the leading home insurance agency in the North American region, offering the highest level of property protection. Based out of Vancouver, Canada, the company has received an A+ rating from Better Business Bureau .

Whether you are the landlord, homeowner, or tenant, Square One keeps your properties insured on personalized terms that suit your financial plans. In simpler terms, customers can determine the property they want to insure, subscribe to the insurance package, and configure their monthly deductibles. The agency provides comprehensive coverage against theft, fire, water damage, and liability claims on your property.

Referral Strategy

Square One acknowledges the power of referrals and adopts an ingenious referral strategy to incentivize existing policyholders to generate newer leads. The program rewards existing customers $25 account credit if their referred-in leads subscribe to the policy. New users can also win a $10 Amazon gift card for requesting a quote.

Square one sign-up page with a quick quote receiving window.

While you can bring in every new lead digitally through your unique referral link, Square One also caters to old-school customers by enabling actual word-of-mouth recommendations. Ask your friends or family to mention your name when speaking to a licensed agent.

Besides communicating value propositions with a clear tagline, Square One instates an advanced dashboard to streamline the referral process. The headline, “Get an online home insurance quote in 5 minutes,” effectively points out the key proposition, educating customers on what they are signing up for.

Life insurance couldn’t be made simpler and easier than Etho’s Life. Founded in 2016, the agency aims to streamline insurance policies and fulfillment processes by leveraging technology and data-driven underwriting.

While mainstream insurance agencies are stuck in stringent policy guidelines, Ethos Life enrolls participants based on a basic health inquiry. No medical exams or blood test reports, simply answer a series of questions online and get yourself eligible for the monetary coverage you need to protect your loved ones. People can receive up to $1 million in insurance claims by paying $1 monthly.

The Referral Strategy

Not all referral programs are the same. While startups introduce double-sided referral incentives to boost customer acquisition, most companies still value loyalty over leads - and Ethos Life has a similar mission statement.

Ethos Life refer a friend landing page window.

According to Ethos’ referral strategy, referring customers can earn a $10 Amazon gift card for every successful lead generated. New visitors that channel through your referral code must create an Ethos account and get approved for an AAA life policy to set you up for reward. Customers can refer up to five friends on the platform, earning a total of $50.

Transparency and simplicity kept the Ethos Life referral program afloat since its inception. The brand originally offered $50 per referral but later reduced the reward to $10 once the word spread around. The referral landing page features an FAQs section, guiding visitors on who to refer to and to refer them.

Spivey Insurance Group

With 20 years of experience in the industry, Spivey Insurance Group takes pride in serving individuals, families, and businesses to protect what matters. The family-owned enterprise has built a reputation for its exceptional customer service, extensive industry expertise, and comprehensive coverage.

Spivey Insurance Group values its customers like a community, with one looking out for another. While the company fosters customer trust with exceptional services on one end, current clients channel in new leads through positive word-of-mouth referrals.

What better monetary incentive would compel customers to go the extra mile and refer new leads to your business than the possibility of winning a $1000 cash reward? While every referral gets you a guaranteed $10 in rewards, it also adds your name to a $1000 prize pool that’s slated for the end of the year.

Spivey’s refer a friend landing page with a quick explanation of how it works.

On the outlook, there’s no limit to the number of referrals. The program is open to everyone, not just existing clients. All users need to do is fill out the “refer-a-friend” form on Spivey’s referral landing page with contact information to generate their unique referral link.

Vitality Health and Life

The private healthcare industry is notorious for instating the most complicated policies when it comes to insurance. Despite subscribing to an insurance package, people are generally unaware of their healthcare needs safeguarded under insurance. Not knowing how referrals work with health insurance often deals heavy damage to their finances.

Fortunately, Vitality Health and Life streamline the insurance process with better support tools, customer service, and referral rewards. The brand currently stands as the world’s largest incentive-based health promotion program. In 2019 alone, the vitality program participants saved over £103m via rewards, cashback, and discounts.

As a vitality policyholder, you can invite your loved ones to the platform and reap similar health benefits. Every friend that joins Vitality through your unique referral links sets you up for a £100 gift card. What’s more, by introducing friends to Vitality’s 5-star Defaqto-rated health or life cover, you and your referred-in friend will receive a £100 Amazon or John Lewis card.

Vitality refer-a-friend landing page.

Referrals are more motivated by providing state-of-the-art services and continuous customer support than referral incentives. Without a reliable insurance policy to back up your claims, your referral marketing efforts will eventually die out - and Vitality knows this best.

By giving policyholders access to the best possible private healthcare, Vitality generates quality leads that are bound to stay and spend more.

With a rich history spanning several decades, AXA stands out as one of the most primitive private insurance enterprises active to date. While AXA currently runs as a conglomerate holding independently run businesses in the car, health, travel, businesses, and property sectors.

While it's originally based out of Europe, AXA extends its services to North America, the Indian Pacific region, and the Middle East. AXA's health insurance plans cover medical consultations, hospitalization, diagnostic tests, medications, and specialized treatments.

Despite such widespread reach across continents and diverse niches, AXA always seeks new, quality leads. In December 2022, AXA Health launched its refer-a-friend program offering £100 as cash rewards to referrers and referred-in customers. The reward is only eligible if the referred customer subscribes to an insurance policy and does not discredit during the cool-off period.

AXA Health website landing page with referral link-sharing options.

By referring repeatedly and bringing new customers to the platform, existing customers can rack up a fair amount of rewards for their advocacy. Although AXA facilitates a seamless reward redemption process, ensuring that participants can easily claim and enjoy their incentives, there’s a catch! The referral rewards are only distributed 70 days after the initial sign-up or transaction is carried out.

Owning a pet is more than morning jogs or weekly bathing sessions. Pets are sensitive beings requiring as much care and medical attention as normal humans. To keep pet parents wary of unexpected veterinary expenses, Trupanion comes as the leading North American pet insurance agency that covers 90% of illnesses and injuries your pet might suffer.

Whether it's accidents, illnesses, or routine wellness care, Trupanion offers policies that provide your canine friend the right level of protection. As the fastest-growing pet insurance company, Trupanion has spread across the US, Canada, Australia, and Puerto Rico.

Trupanion drives its strength in numbers through a community of avid pet parents who are always ready to spread the word in their social circles. While the company drives most of its referrals organically - thanks to impressive insurance policies - the referral program boost lead acquisition.

Trupanion referral webpage displaying the referral reward and how it works.

People advocating Trupanion to their peers can earn $25 for every positive lead, up to $100 per year. Trupanion develops trust with its customers at every step of the referral process. Once you click the referral link, the company website greets you with a “Trust & Recommend” tagline. Instead of making vague quality promises, the referral page features the average review rating on Trustpilot, letting people know they are making the right choice.

Hiscox Insurance Company is a leading international specialist insurer with a rich history spanning over a century. Founded in 1901, Hiscox has grown to become a trusted name in the insurance industry, offering a wide range of insurance products and services to businesses and individuals worldwide.

The insurance brand specializes in providing tailored insurance solutions to individuals and businesses from varying industries. With a global footprint, Hiscox offers insurance policies to sectors like art, cyber technology, marine, and high-value personal assets. Knowing the potential risk their clients face, insurers devise policies tailor-made to their needs.

Laying out the benefits of your referral program upfront captures customers’ attention at first sight and compels them to participate - and Hiscox's referral strategy serves as a touchstone example.

Hiscox refer-a-friend landing page with an easy-fill form for participation.

Hiscox’s referral landing page starts with an inviting statement, “Refer a friend to Hiscox, and you could win one of ten $50 Amazon gift cards,” and visitors follow suit immediately. To keep visitors interested in the offering, the platform briefly explains how the program works.

Unlike typical insurance referral programs, Hiscox doesn’t guarantee rewards for generating qualifying leads. The platform keeps them hooked with the possibility of winning an even better reward at every monthly prize draw. As more people share the personalized referral message with their peers, Hiscox receives wider brand exposure without spending on targeted social media ads.

Paying exorbitant car repair costs for a road accident, you yourself were a victim of can jumble up your savings. For tech-savvy drivers that practice safe driving and usually travel inter-city, buying an auto insurance program is often the only refuge.

Noblr, one of the most innovative automotive insurance companies, employs modern technology and smart mechanics to offer personalized insurance rates based on customers’ driving patterns, habits, and miles driven. Safe and responsible drivers are rewarded with lower premiums, creating a fairer and more equitable insurance system.

People can actively monitor their driving behavior with Noblr’s mobile app. Knowing the faults in their driving, customers can improve their driving habits and style to receive a better insurance premium.

Like their advanced telematics, Nobler has implemented a centralized design structure to raise awareness about their referral program and drive people to participate.

Marketers at Noblr attempt to break into the psychology of their existing customer base. The referral landing page starts with a compelling hook “Refer smart drivers, earn rewards.” Displayed as the main header, it catches visitors' attention at first glance and lets them know what qualifies them for the reward.

 Noblr refer-a-friend landing page showing the referral process.

Thanks to Noblr’s customer-centric referral process, program participants can generate new referral links to share with friends. Once your referred friend signs up on the platform and gets a quote, referring customers will receive a $25 Amazon gift card. By bringing consecutive referrals, people can earn up to $1000 in gift cards.

Best Practices to Boost Insurance Referral Programs

On the surface, no marketing strategy looks quite straightforward as referral programs. Motivating people to endorse your product in their friendly circles only fares seamlessly on paper, but the reality is cold-served.

Before you start imitating effective insurance referral programs, know your target audience. Figure out their prime motivation, which compels them to refer their friends. Assess your marketing budget, and devise attractive incentives to compel customers to spread the word about your brand.

Be Positive About Referrals

A common perception amongst new startups is that asking for referrals might make them sound desperate or obtrusive - that’s rarely the case. To survive and upscale in the hyper-competitive insurance market, businesses must develop a referral orientation or instate it as their primary product launch strategy .

If you’re delivering quality services and offering impressive customer experience, you shouldn’t be shy to ask for a referral. Instating an appropriate reward for every successful referral will help eliminate reluctance. When launching an effective rewards program, get the following things straight:

  • Set up your business plan.
  • Identify your marketing goals and objectives (e.g., activity, conversion, revenue, etc.)
  • Target your referral program toward your target audience.
  • Automate the program with advanced referral-tracking software.
  • Leveraging the right marketing channels to promote your referral program.

Present Your A-Game

Whether you’re devising the right insurance policies or keeping in contact with your customers, always be at the top of your game. If you show even slight negligence in your services or compromise on your promises, your customers won’t hesitate to shift to your competitors.

For starters, keep your insurance referral program simple and transparent. Not only should your customers be able to navigate through the process, but also view their performance or referral score in real-time to stay involved.

Set up tracking software to automate sending out referral links, checking up on participants with follow-up email signatures, and presenting timely rewards and bonuses. Whether you purchase a referral system or build one in-house, make sure it's foolproof and operates like a machine.

Locate Your Net Promoters

Not every customer is enthusiastic about your brand enough to let their friends know about it - even if you load it up with exciting prizes to reward your customers. Always prefer clients that have spent extended time on your platform, shopped frequently, or left positive reviews on site. They are your ideal customer base that’s most likely to bring quality leads onboard.

The reason why insurance programs are the least talked about subject in casual gatherings is that many people fear embarrassment in case their referred agency doesn’t match their expectations. Adopt appropriate channels to build credibility and respect with your existing clients.

First, earn their trust to leverage their connections afterward. Locate clients with a credible social stature and the ability to influence people with their recommendations. Implement a Net Promoter Score survey to detect your level 1 client and devise incentives that keep them motivated.

Leverage Social Media

Social media harbors untamed potential that sets the way for unimaginable growth if leveraged properly. Whether you’re running a car insurance franchise or providing healthcare insurance to pets and animals, social media probably carries the biggest pool of prospects that can help boost your business. Here are some effective ways to use social media accounts for your benefit:

  • Develop engaging content that highlights the referral program benefits and incentives of your insurance policies. Highlight it with attention-grabbing visuals and persuasive copy to communicate the program’s value.
  • Whether it's Facebook, Twitter, Instagram, LinkedIn, or YouTube, identify the social media platforms where your target audience is most active, and establish a strong presence.
  • Tap into the power of user-generated content by encouraging your satisfied customers to share their positive experiences with your franchise.
  • Partner with influencers that align with your niche and leverage their follower base to raise brand awareness, increase engagement, and establish credibility.

Share Success Stories

People trust people more than they trust marketing messages from companies they’ve never heard of. Ask your existing clients if you can share or publish their success stories on your website, setting a real-life example of how you helped clients safeguard their health and save money. Even though it’s not a direct referral, success stories serve as credible testimonials allowing prospects to visualize the benefits of signing up with your agency.

Closing Note

Companies thrive with consistent inflows of new clients and solidify at the hands of loyal ones - a perfectly set up referral program offers the best of both. When marketing your insurance franchise, focus on building your company referral-worthy and let your existing clients do the promotion for you.

Regardless of how complicated or multi-layered your insurance policies might be, keep your referral program straightforward for an average customer to navigate. Promote it on channels that your target audience uses and current customers have a visible standing. To prevent any discrepancies in the program, instate referral software to save time, and finances, and boost customer acquisition.

If you feel competent enough, follow the lead of successful insurance referral program examples or sign up with Prefinery.com to get it done professionally.

What makes a successful insurance referral program?

The best referral program examples for insurance typically include clear incentives for both the referrer and the referred customer. It should be instated with attractive rewards and discounts for every quality lead generated, motivating customers to actively participate. A user-friendly referral process, personalized tracking, and transparent communication are essential factors that contribute to the success of the program.

Which insurance companies have prominent referral programs?

Some noteworthy examples include:

  • Square One Insurance: Offers $25 account credits and $10 Amazon gift cards.
  • Ethos Life Insurance: Provides referrers with $10 Amazon gift cards for new referrals.
  • Spivey Insurance Group: Offers discounts on premiums. $25 gift cards and participation in a yearly prize pool of $1000.

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How to Build a Strong Customer Referral Program in 2023 [Ideas & Examples]

Madeleine LaPlante-Dube

Published: February 09, 2023

One of the basic tenets of customer success is using your service to create advocates for your business — and a customer referral program can help.

friends discussing a customer referral program

Based on a recent study , 94% of customers will recommend a company whose service they rate as "very good." This means an army of satisfied customers can do a lot of legwork for you.

Free Download: 45 Customer Referral Templates

Not sure how to create the conditions for these consumer connections? Here's what you need to know about building, expanding, and managing a referral program that works.

Continue reading or jump ahead:

How valuable is a referral?

What is a referral program, how to create a customer referral program, customer referral program ideas, customer referral program examples.

Customer referrals are highly valuable because they don't cost much — if anything — to acquire. The exact value of a referral varies across different businesses, but it's roughly the lifetime value (LTV) of a customer, plus the cost of customer acquisition (CAC), which you can then use to acquire additional customers.

Data tells the tale: Companies found that referred customers have a 30% higher conversion rate, a 16% higher lifetime value rate, and a 37% higher retention rate than leads generated from other marketing channels.

The reality is, however, that you're effectively asking your customers to stand in place of your marketing and sales departments.

And when referrals are the heart of generating new business, operating with tact, consistency, and patience is extremely important.

A referral program is a word-of-mouth marketing tactic that encourages customers to advocate on behalf of your brand. Rather than writing reviews online, or submitting customer feedback surveys, referral programs let customers share their brand experience with partners, colleagues, and friends.

The purpose of a referral program is to attract new leads to your business. But, you're not just bringing in anyone.

By asking customers to think about people who would benefit from your product or service, they'll refer leads that are a good fit for your brand.

business insurance referral program

Free Customer Referral Templates

45 email & social media templates to ask for referrals and spread the word about referral programs

  • Email Templates to Ask for a Referral
  • Email Templates for Following Up with a Referral
  • Social Copy Templates About a Referral Program

You're all set!

Click this link to access this resource at any time.

This only makes it easier for your marketing and sales teams to nurture and engage customers because not only are these leads a good match for your business, but they're also familiar with your company and its reputation.

Since they've been referred by someone they know, they have a reliable resource telling them that your company is trustworthy and produces a positive customer experience .

If you're ready to start leveraging word-of-mouth at your business, read on to the next section for tips on how to create a customer referral program.

  • Start with customer referral templates.
  • Set your goals.
  • Research how referrals are coming to your business.
  • Determine what a 'good fit' is for your company.
  • List possible customer referral sources.
  • Identify channels to host your referral program.
  • Make a plan to reach out.
  • Identify your referral incentives.
  • Create resources to alert your customers.
  • Set up tracking.
  • Say Thank You.
  • Follow up on your referrals quickly.
  • Improve your referral program.

1. Start with customer referral templates.

HubSpot customer referral templates

Whether you're a one-person customer referral machine or part of a multi-person referral team, templates are a huge help in the process.

They can be adjusted to fit the voice and tone of your brand and utilized by anyone in the company that needs them.

These free customer referral templates can be used for creating a bank of:

  • Referral request emails.
  • Referral follow-up emails.
  • Social copy about the business's referral program.

Alternatively, take a look at Referral Factory's step-by-step guide 

2. Set your goals.

Ask yourself: what do you hope to get out of this referral program?

Are your goals tied more to growth and revenue? Do you want to add retention to that mix? Are you in an industry that requires an exceptional amount of trust-building?

Once you decide what your goals are — and explicitly define them — the next steps should lay themselves out for you.

3. Research how referrals are coming to your business.

A good place to start is by assessing where and how referrals are coming to your business — or if they're coming to your business at all.

This is where you should involve marketing, sales management, support — anyone who would be responsible for building customer relationships — and assess how they've been traditionally dealing with referrals.

This will give you an idea of where you already are.

You should also know what an existing customer is worth. Compared to time spent monitoring and managing onboarding programs, how many referrals do you need to break even?

It's worth doing the math to see how much referrals could generate and adjusting your marketing spend accordingly.

4. Determine what a 'Good Fit' customer is for your company.

Before you tell customers to seek out referrals, you should first identify what an ideal customer looks like.

That way, your existing customers will refer leads that actually buy from your business, rather than just listing names to collect the program's incentive.

These descriptions should be placed right at the forefront of your customer referral program.

For example, if you have a form that customers fill out, you should describe what a "good fit" customer is right at the top of the form.

This will remind participants that you're looking for specific individuals who need your product — not just a friend who might be interested in your business.

5. List your possible referral sources.

We'll call these advocates, and they can be anyone whom you're already connected to currently, or who you have been connected to in the past.

Begin listing them out. This list could include current customers, past customers, leads that may not have closed, industry leaders, your vendors, etc.

This will give you a solid footing to start with.

6. Identify channels to host your referral program.

For your referral program to work, you'll need a communication platform that alerts both your business and the referred customer when a referral is submitted.

Here's an example from Uber Eats, where the customer can share a referral code to a friend or family member using WhatsApp, Messages, or another available option.

customer referral program example, Uber Eats

When invite is sent, not only does the referred customer get the message, but Uber Eats knows the original customer submitted the referral.

Uber can now turn to its marketing and sales teams to further engage the referred customer as soon as they sign up using the ride credit.

While you don't have to offer a $20 discount, your business should provide customers with a way to share their referrals. That way, the introduction to your company is through a trusted peer rather than a cold contact.

7. Make a plan to reach out.

Now, refine. Narrow down the list of advocates and sources to a list of "inner circle" contacts.

These are people who know what value your business has and would refer you without any incentive. Finding your inner circle isn't a process that can be automated — you'll get more benefit from this if you pull and segment these contacts manually.

Once you have your inner circle segmented out, you now have two things to take into consideration.

First, timing is everything. Identify appropriate times to ask these inner circle advocates to take part in your referral program. Because they are people you've worked with before, this is a less strenuous process.

When you start working with people who will need an incentive (which we talk about below), it's important to consider the relationship.

For some companies, depending on the service or product, asking for a referral needs to happen late in the relationship. For others, it could be upon the first sale (think apps, digital interface services).

Then, once you've asked, wait some more. That might require a waiting period of months, or even a year, to remind them about the referral program again.

Additionally, you should also be picky with your advocates (even your inner circle ones).

Identify people whom you think could market your brand the way that it should be marketed.

Within that inner circle, who do you have a stellar, standout relationship with? Or do you have an existing customer that came from a referral and worked out?

And remember: Watch out for referral fatigue, and make sure you're not overburdening your contacts.

8. Identify your incentives.

There are two options for a referral program: an incentive and a non-incentive program.

During this step, you should break your contacts out by levels and decide which ones can receive which offer.

And don't forget the referrer — make sure they get something out of the deal, too.

Like our Uber Eats example above: When a customer refers a friend, they get $15 credit — and when a customer first signs up, they get a $20 credit towards their first order.

9. Create resources to alert your customers.

Once you have a referral program, create resources you think would work well, and alert your customers. Then, promote, promote, promote.

And consider multiple avenues of promotion beyond the time-limited email campaign to remind your customers of the program's existence.

Those might look like:

  • Newsletters
  • CTAs & email signatures
  • Product updates

Once you have the referral programs outlined, you'll have an idea of what resources you need for each one.

I've listed out a few resources you might need below:

  • Emails for each type of contact telling them about your referral program
  • A message explaining what types of customers fit well with your business. You need to paint a picture in their minds of your ideal customer
  • A workflow that leads your contacts through the program and alerts your sales team when to call
  • A landing page that provides a place for your contacts to give you their friend's information
  • Scripts for your sales and customer support teams to follow when explaining your referral programs
  • A referral kit filled with resources for your contacts to share with their friends: this can include case studies, testimonials, eBooks, videos, anything that gives insight into working with your business

Whatever your medium, make sure it's consistent, persistent (though not over-the-top), and in line with your program's revenue, growth, and retention goals.

10. Set up tracking.

Regardless of the size of your company (though this is especially relevant if your company has a larger customer base) you need to have tracking set in place.

This will ensure that you don't miss one detail — for referred accounts especially.

You should be tracking:

  • Who was referred and who referred them
  • When they were referred
  • Whether or not they converted or were sold
  • How you're going to nurture and follow up with them, etc.

If you don't already invest in a CRM (customer relationship management) system , then now is a great time to become familiar.

Keeping track of customer relationships is a huge component of customer success — the ability to individualize each account or relationship makes each customer feel like they're a unique part of your base.

11. Say "Thank You."

Thank the referrer for helping you out (this is where incentives might work, but also consider messaging that thanks them specifically as well) and thank the referred for joining.

Then, get to work — you've got happy customers to prove right.

12. Follow up on your referrals quickly.

When you do land a solid lead, be sure to take advantage of it right away.

Don't let your referrals sit around for too long or you might miss the opportunity to secure these new customers.

Remember, while your customer may have referred this person to your business, they may have referred them to other companies as well.

What's more, you don't know what research the referred customer has done on their own, and you may have to swing them away from going with a competitor that they've been considering for some time.

At the end of the day, the sooner you can make your impression, the more likely you'll be to close the deal.

13. Improve your referral program.

As we mentioned earlier, there's no universal blueprint for creating a perfect customer referral program.

The best program for your business will be unique and potentially quite different from your competitors depending on how you assess customer needs and preferences.

The important takeaway here is that it may take some time to figure out what works and what doesn't — and that's perfectly normal. You should be testing your program regularly to see what you're doing well and where you can stand to improve.

Try sending your customers feedback surveys to see what they think about your program and be sure to apply that feedback moving forward.

After all, the better your referral program is, the more leads it will generate for your marketing and sales teams.

Now that we've explained how to create a referral program, let's explore some ways you can put this plan into action.

1. Contests or Giveaways

Contests or giveaways can incentivize customers to refer new leads.

For example, you can host a contest where customers are only entered if they refer a certain number of leads to your business. This can mean providing a list of emails or getting signups for a free trial or membership.

The one risk that you run with contests is the quality of leads. If customers are randomly selecting their peers, you might not obtain leads who are interested in your business.

This will cost your marketing and sales team time as they sort contacts who aren't a good fit for your company.

Be sure to create contests that encourage customers to refer high-quality leads. You can do this by basing your entry fees on conversions rather than referrals.

If a customer wants to be entered into the contest, they need to get people to sign up for or purchase your product, rather than simply providing an email. This will ensure that you're rewarding customers for providing high-quality leads to your business.

For example, this Gold's Gym giveaway included a host of physical prizes such as dumbbells and workout benches in exchange for referrals.

customer referral program ideas: giveaway from gold's gym

Why It's Effective

This strategy is effective because it appeals to our inherent desire to win something. It might be a free product or subscription to a service, or it could even be a cash prize.

By giving away something customers want for their help in finding quality referrals, businesses can zero in on their target market.

Who It's Best For

This approach works for any business, so long as you have something worth giving away. Retail brands could give away a high-quality, high-value item, while service companies could offer to cover the cost of services for a month, six months, or a year.

How to Measure the Program's Success

Measuring success means making sure that customer referrals are driving quality referrals and conversions. As a result, it's worth tracking the amount spent on contest prizes versus the volume of spending driven by referred customers.

When to Implement It

It's worth implementing this strategy when referral numbers start to dip. The caveat? Only run it for a fixed period of time — such as two weeks or 30 days — to keep interest high.

2. Social Gifting

It's easier to motivate customers if they don't feel like you're trying to manipulate them.

When you send out a coupon that says, "refer five people and get 25% off," customers know that you're trying to get something from them and are more dubious of your offer.

Instead, you can leverage social gifting as a way to encourage referrals without directly asking for them.

Take the example below.

customer referral program ideas: social gifting from briogeo

Instead of rewarding customers for providing a certain number of referrals, this offer rewards them for sharing a coupon with their peers.

This way, the customer not only gets to give a gift to a friend but is also rewarded each time their referrals redeem the coupon.

That provides them with extra incentive to reach out to as many people as possible.

Social sharing provides a way for existing customers to give and get something — and something they'll actually use. Since you're relying on customers to do the leg work, however, make sure that your social gift is worth their while.

The example above shows a $15 off coupon for both referrer and referee; numbers lower than that, such as $5 off a purchase, probably won't motivate action.

Social sharing is often best for brands with a product that benefits from a specific or percentage discount. This is especially true for brands that don't typically run sales events, since it gives customers the rare chance to get items at a lower cost.

Use unique coupon codes or other methods to track the use of your discounts — one for current customers and one for new referrals — to make sure the program is paying off.

This approach can be used any time of year for retail or eCommerce brands. One piece of advice? Make sure your giving is two-sided; both referrer and referee should get something out of the deal.

3. Fundraisers

Fundraisers are a great way to connect with your customers' values in a way that doesn't involve your product or service.

By getting involved with a cause that your customers care about, you're demonstrating that you understand more than just their buying habits. You recognize their personal values as well as what they are looking for from your business.

Additionally, fundraisers present a referral opportunity as well. It's easy for customers to share fundraisers with their peers, and as more people donate and participate, your team will build a database of leads who share the same values as your company.

This makes it more natural for your business to follow up with these new leads and shift the conversation towards your products and services.

customer referral program ideas: fund raiser from papa ginos

Fundraisers take the focus off your brand and put it onto a worthy cause. While your brand is associated with the effort — and can gain some goodwill as a result — the best fundraising efforts make sure that the cause takes top billing.

Any company can use fundraising as a referral program. The concept is simple: Create a fundraiser for a cause your customers are passionate about and then ask them to share the details with friends and family.

Done well, fundraisers can bring in new customers via direct referrals. But this isn't the primary purpose: Instead, you're looking to build goodwill and community reputation.

As a result, you may see downstream effects when customers recognize your company name and choose to engage with your social media channels or make a purchase. Ask them where they heard about your company to get a sense of the fundraising campaign's effectiveness.

Fundraisers can happen at any time, but it may be worth aligning them with local holidays or festivals that have customers feeling more generous with their time and money.

4. Customer Loyalty Tiers

So far, we've discussed referral program ideas that encourage one-time referrals. While these are certainly effective, it's tough to host a daily contest or start a fundraiser every other week.

Instead, it's more efficient to have a referral program that motivates customers to refer multiple people over a long period of time.

To accomplish this, you can create customer loyalty tiers that reward people as they continue to refer leads. Each tier has unique benefits and when customers refer a specific number of leads, they're promoted into the next loyalty tier.

With this setup, customers are constantly motivated to refer new leads even if you're not hosting a contest or promotion.

customer referral program example, pinto

Access to greater discounts or rewards can be a significant driver for some customers, especially if they regularly spend large amounts of money on your site or in your store.

Since these customers are already loyal, they're more likely to sing your praises to friends and family regardless of any rewards offered.

Adding a tiered referral option simply adds motivation.

Companies that sell a large variety of products at different price points can benefit from this approach. Lower tiers may offer discounts on lower-priced items, while higher tiers could provide both money off and early access to new products.

Measure success by tying the number of new referrals and conversions to current, high-tier customers. If you reach a saturation point where the number of high-tier members outstrips the number of conversions, consider adding a new tier or phasing out the program altogether.

Implement this program just prior to a new product launch or social media campaign to help drive interest and engagement with your brand.

5. Seasonal Campaigns

Seasonal campaigns are always a timely way to draw in new customers.

You can promote holiday discounts, annual sales, and long-term deals that can be used every year. And, if you execute these campaigns consistently, your customers will look forward to them year-round.

customer referral program ideas: seasonal campaign from rift

Spending ramps up around many major holidays, making them the perfect time to capture customer attention with a great deal or discount. Do it right, and customers will look forward to your seasonal campaigns all year long — and they'll also tell their friends.

Seasonal campaigns can work for any product or service brand, so long as your messaging is clear and you make sure to advertise the upcoming event prior to the season or holiday itself.

Since these campaigns happen over a fixed period of time, measuring success means comparing the number of referrals and conversions generated over the seasonal period compared to previous campaigns.

Start your implementation around a month before the seasonal event itself to give customers time to think about what they want to purchase and who they want to refer.

6. Exclusive Events

Customers like to feel like they're a part of a community, especially if it's exclusive.

By hosting events that are reserved for members of your customer loyalty program , you can capitalize on customer advocacy and attract new leads.

For example, you can provide extra tickets to an event so customers can invite their peers and introduce them to your brand through a casual setting.

Rather than bringing them into one of your stores, leads can attend a company outing or event where there's no pressure to close a deal.

customer referral program ideas: event from linkedin

Messaging from companies will never equal the impact of recommendations from friends and family.

If you can provide customers with unique experiences that introduce your brand without making it the focus of the entire event, loyal customers won't feel strange about sharing invites with their social circle.

This is often a great approach for B2B companies to help expand their current corporate network connections. If you can carve out a reputation as a company that hosts great events, it's even easier for current customers to convince friends and family to tag along.

Compare your spending on the event to the number of referrals received and the number of conversions related to these referrals.

Expect to take a loss the first few times as potential customers become familiar with your events, but if low numbers persist, consider changing your approach.

Implement this strategy when calendars are fairly clear. For example, just after the holiday season is a good time — prospective referrals are often feeling a bit down and looking for an excuse to have a good time.

7. Referral Discounts

If your customers are looking for a more direct return on their referrals, you can also offer them discounts based on how many leads they bring to your business.

Remember, acquiring a new customer is much more expensive than retaining an existing one, so the money you lose on the discount will be made up for with the leads that you convert.

customer referral program ideas: referral discount

Large enough discounts on products people want can convince them it's worth their time to refer their social connections and help promote your brand. The caveat? Do your research to make sure the discount you're offering is substantial enough to drive action.

This method works well for brands with high-value items such as electronics, jewelry, or clothing. If you can offer a significant discount for the number of referrals brought in, you're more likely to see success.

Remember that when it comes to referral programs, what you lose on discounts you make up for with new customers. Track sales from customer referrals over a specified period — for example, six months — to see if discounts are paying dividends.

Consider running this type of campaign during the launch of a newer and more expensive version of your product, or the debut of an entirely new product line.

8. Product or Service Upgrades

Product or service upgrades are excellent incentives for customer referral programs because they both attract new leads and they encourage existing customers to continue using your products.

If you don't have an upgraded product or service to offer, you can instead introduce customers to beta features, products, and services that the rest of your customer base doesn't have.

Not only will this "wow" customers with what your product development team has been working on, but it will also make them feel like part of an exclusive group that has VIP access to these special features.

With this approach, you're not just offering an incentive in return for new leads.

You're encouraging customers to share positive feedback while simultaneously adding value to their customer experience over time.

customer referral program ideas: product upgrade from evernote

It's always nice to be part of the "in" group, especially if it gives you access to new services or features. Craft a stand-out experience here and customers will be happy to talk up your company.

Service-based companies and software developers are good examples of where this approach may excel. By giving repeat customers early access to new features and functions, they feel appreciated and are excited to tell everyone else about it.

Access to features and functions still in testing is extremely cost-effective since you're not currently marketing these to customers. As a result, any sales that come from referrals can be considered a success.

Implement this type of program whenever you're rolling out a new product or service. You get the benefit of free beta testing and customers are happy to be included.

9. Charity Connections

Here, you're helping yourself by helping your community.

Instead of rewarding customers with discounts or exclusive events, you partner with a local charity organization and make a donation every time an existing customer provides a new lead referral.

This is particularly useful to help build brand reputation and trustworthiness over time — both of which are now a priority for consumers.

customer referral program ideas: charity connections from vena

Reputation matters for customer retention. While buyers are happy to get a discount or a free gift, if you're willing to make a donation for every new referral, it improves their perception of your brand and in turn their willingness to share your campaign.

This approach has widespread appeal. The caveat? Do your research and make sure the charity you're donating to is one that your current customers care about.

Since your goal here is reputation rather than direct revenue, focus on social media shares and positive online interactions with your brand. This indicates that your campaign worked, and conversions should naturally follow.

While charity is a worthwhile goal any time of year, charitable giving may have more impact during or just after a crisis or high-profile event that has people looking for ways they can help.

10. Mystery Gifts

Who doesn't love a gift?

And while picking your own from a lineup of potential presents is great, sometimes it's even better to get a surprise.

This is the idea behind mystery gift referrals — when current customers refer potential prospects, you send them a mystery gift. It doesn't need to be anything extravagant, just something that shows your appreciation.

customer referral program ideas: mystery gift

Mystery gifts are just that — mysterious. They offer a surprise for potential referrals that may help them take action and sign up for your emails, follow your page, or start making purchases. Useful, not expensive, is the goal here.

While any company can implement the mystery gift idea, this approach typically sees more success with retail and eCommerce brands that already sell physical products.

For example, although a software design company could send out a free gift to potential clients, it's harder to connect this type of referral to the service being offered.

When it comes to measuring success from mystery gifts, take a look at spending versus revenue.

If giving gifts to current customers and their referral prospects leads to enough business that you offset the cost of your gift program, keep at it. If costs consistently outpace revenue, consider another approach.

Everyone loves a free gift — use this approach wherever, whenever to drive new business.

If you're still not sure how to use these strategies, let's look at a few companies that have successfully executed these customer referral ideas.

  • Healthy Paws
  • Google Workspace

Dropbox offers free products or services in exchange for users referring new customers: You can earn more cloud storage space in exchange for referring a friend.

customer referral program example, Dropbox

Image source

How to Make It Work For You

  • Offer something that makes existing customer accounts or services more valuable.
  • Not sure? Ask customers what they'd like before spending on a referral program.

When you refer a friend to Acorns , an online micro-investing service, you get $5 deposited in your account when they start investing.

It's called Acorns because it's all about investing small amounts of money to accumulate wealth, so $5 goes a long way.

Sometimes, people just want money — but especially if they're already using a money management app.

customer referral program example, Acorns

  • If you're opting for money as your referral award, make sure the process from referral to deposit is clear and easy to follow.
  • Make sure to highlight any restrictions, such as the number of friends that customers can refer.

3. Stitch Fix

When you refer a friend to Stitch Fix , an online styling and shopping service, you get a credit on your next order.

The amount of the credit varies, so be sure to check your account's Referrals page to see how much you can earn.

It's an easy step to go from telling someone where you got your outfit to sending them a link to try it themselves, so pairing that with a compelling credit or discount makes this program successful.

customer referral program example, Acorns

  • If any of your services are fee-based, waiving them is a great starting point. The caveat? Make sure it's enough to cover something for customers so they feel like they're coming out ahead.
  • Keep it simple, especially if your program has several components. Consider creating a referral program website that explains the process in detail.

4. T-Mobile

Customers who refer cellular carrier T-Mobile to their friends can earn up to $50 per friend who purchases a T-Mobile plan and up to $500 per year.

Friends, meanwhile, enjoy discounts on their new plans to help encourage the referral process.

Referral program examples: T-mobile

  • T-Mobile's referral program depends on the quality of service. If you have a service-based business, make sure you make current customer satisfaction a priority before branching out into referrals.
  • Opting for a multi-referral process lets current customers earn substantive rewards — this often drives better results than a single, large-payout referral.

5. Healthy Paws

Healthy Paws pet insurance has a referral program that donates $25 to homeless pets on behalf of referrers when referrals are completed.

It's a smart choice to offer this type of referral for an animal-focused insurance business — the compassionate nature of the reward is likely to attract both current clients and new customers alike.

Referral program examples: Healthy Paws

  • This type of program is great to help encourage referrals and gain social capital for compassionate giving. The caveat? Carefully select charities or nonprofits to ensure they're legitimate.
  • Be upfront about what charities do and the amounts they've raised - feature them on your website and regularly review them to make sure money is spent responsibly.

6. MeUndies

Online underwear company MeUndies offers a win-win situation for customers who like their product: New buyers get 20% off their first order, and existing customers get $20 off their next order.

Here's how it works: Customers with an active account and at least one purchase can generate a referral link and send it to friends.

When friends use the link to make a purchase the 20% discount is automatically applied and existing customers get a $20 credit on their account.

Simple? You bet. Effective? Absolutely.

Referral program examples: MeUndies

  • In the case of more niche products like underwear, your referral program depends on the quality of your product, so it's worth cultivating a loyal customer base before rolling out a widespread referral campaign.
  • Companies like MeUndies also charge a premium price for their product — for similar brands, it's critical to offer a substantive discount, such as 20% or more on the first order, to capture new customer attention.

7. Google Workspace

Search giant Google also has a referral program that offers cold, hard cash for bringing new users into the fold.

Existing Google Workspace customers simply sign up and get their referral link which they send to friends or colleagues.

Unlike many other programs, however, Google doesn't bother with discounts or free gifts — if new customers use referral links, referring customers get a monetary reward deposited directly into their bank account.

customer referral program, Google Workspace

  • This program targets workers and their colleagues, which makes function the key connector: Since employees are less likely to rave about productivity software or business apps to their co-workers, your product needs to stand out from the crowd.
  • Consider a tiered reward model; Google offers differing cash amounts depending on the type of product referred.

8. DoorDash

Food delivery company Doordash is always looking for new drivers, and their referral program is designed to target areas where demand is highest.

Current drivers can check their app to see if drivers are needed in their area — if so, they'll see a "Refer Friends" banner at the top of their screen.

They can then send referral links to friends looking to become DoorDash drivers — when these new drivers complete the required number of deliveries, both referrer and referee can earn cash bonuses.

Worth noting? The amount earned scales with current demand. In high-demand areas, new "Dashers" and those who refer them could earn up to $1,000.

Current drivers can also refer up to 15 new drivers.

Referral program examples: Door Dash

  • The DoorDash program is based on demand. If you're a service-driven business, this is a great way to generate interest. The key to success? Aligning your rewards with local needs to drive growth where you need it.
  • DoorDash also encourages referees to work quickly — if targets aren't met before bonuses change, they don't receive the full amount. This can be a great way to drive interest, but make sure you're up-front about how the program works.

Overall, a customer referral program is a great way to retain customers and drive word-of-mouth marketing. Creating advocates for your company will keep the flywheel spinning.

Editor's note: This post was originally published in June 2021 and has been updated for comprehensiveness.

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></center></p><h2>Examples of referral programs at leading insurance brands</h2><p><center><img style=

We’ve already explained in this article why referral marketing is made for insurance, but here’s a quick reminder of the reasons.

Firstly, insurance marketers face all the same problems that marketers in any industry face such as:

  • The ever-increasing costs of paid marketing on Google and Paid Social
  • The death of Organic Social
  • Increased barriers to getting marketing messages in front of consumers: ad blockers, spam filters, banner blindness
  • Increased regulation around data use and storage: GDPR and CCPA etc.
  • Consumer distrust of ads and celebrity endorsements
  • Millennials and Generation Z increasingly not owning/watching terrestrial TV
  • The declining loyalty of customers

And that’s before considering the increasing evidence that much digital marketing might not even be working that well, as evidenced by so-called turn off experiments and Starling Bank reporting that boycotting Facebook and Instagram had no discernible effect on its business. 

But insurance marketers also face many issues, in common with other regulated businesses like banking and utilities , that derive from being an insurer including:

  • Higher marketing costs in paid search, paid social and affiliates than seen in other industries, due to competition bidding up prices, for example with Wordstream reporting average costs per click in paid search at US$54.91 in 2022
  • Limitations on marketing as a result of being a regulated industry, obviously more so in health, life and pensions but, even in general insurance, the need for legal and compliance sign-off tends to lead to a more cautious approach than in non-regulated sectors
  • The capture of traffic by price comparison sites with huge above-the-line marketing budgets and highly effective SEO, which has the effect of turning free traffic into expensive paid leads and creates a ‘deal seeker’ attitude amongst customers always willing to switch provider for a lower premium
  • And finally, a perception that because insurance is not a passion product like fashion, music, holidays or interior design, that people don’t want to talk about it with friends and family – that is unless they want to complain. 

But as we explained in our recent article, customers do talk to friends and family about insurance , because it’s an important decision, which can have serious consequences in the case of a wrong choice. And because it’s so hard for John Doe to tell one insurer or one policy from another, the advice of current and past customers is vital to understand the best choice to make.

As a result, insurers and brokers can and do get the same benefits from referral that helped unicorns like Uber, Tesla, Dropbox, and Airbnb grow and get better customers that cost less and stay for longer. 

To show just how referral or member-get-member marketing has become the go-to tool for the insurance industry, we have compiled a list of 24 examples of referral programs across leading insurance brands for you to compare. As you will see, some of these programs are very basic and may not be that effective and perhaps may even infringe data protection laws. We’ll let you be the judge, but there’s definitely a case for moving away from manual or basic referral programs to state-of-the-art digital ones. 

  • Vitality Health and Life
  • APRIL Insurance
  • Allianz Malaysia
  • Direct Assurance
  • Assurancevie.com
  • Aréas Assurance
  • Marshmallow Insurance
  • Vitality Car
  • BUPA Australia
  • Assurpeople
  • Excalibur Insurance
  • La France Mutualiste
  • Euro Assurance
  • Protect Line
  • L’Olivier Assurance
  • Purely Pets Insurance

1. Vitality Health and Life

The Vitality brand, created 25 years ago, is now the world’s largest incentive-based health promotion program. In 2019 alone, its members saved £103m as a result of the Vitality Programme. In addition to helping members directly via rewards, Vitality is also committed to being carbon neutral by 2025 and reaching net zero by 2050.

business insurance referral program

Vitality is utilizing rewards marketing in various parts of its business. Through their well-thought-out and sophisticated Health and Life insurance referral program , customers earn a choice of either a £100 John Lewis or Amazon voucher for each referral. Once a policy is taken out, their referred-in friend will also receive a choice of a voucher worth £100 for John Lewis or Amazon.

2. Trupanion

Trupanion is a leading pet insurance provider based in Washington, that offers cat and dog insurance, in the United States, Canada, Australia, and Puerto Rico. The fastest-growing player in the pet medical insurance space, Trupanion provides comprehensive insurance plans that cover hereditary & congenital conditions.

business insurance referral program

Their referral program is focused on supporting breeders. Trupanion customers receive US$25 for each successful referral and can earn up to US$600 a year. Their referrers will have a choice of voucher once their friend has qualified.

3. AXA Health

Founded in 1940, AXA is one of the world’s leading multinational private insurance companies. Operating primarily in Western Europe, North America, the Indian Pacific region, and the Middle East, AXA Group is a conglomerate of independently run businesses. In the UK, AXA has subsidiaries in the car, health, business, landlord, travel, and van insurance sectors. AXA Health offers private healthcare cover for individuals and businesses, with both health and dental insurance.

business insurance referral program

The AXA Health refer-a-friend program launched in December 2022 and offers rewards worth £100 to both parties in each successful referral. As long as the friend takes out an insurance policy and does not cancel during the cooling-off period. Their customers can refer multiple times, meaning their advocates can rack up a fair amount for their loyalty. Once the policy is set up, their rewards will be distributed within 70 days.

The AA is one of the longest-standing and largest automotive services businesses in the UK. Their award-winning breakdown cover and signature branding have been pervasive in the UK’s motor insurance zeitgeist for decades. Their customers benefit from unlimited call-outs for no extra cost and cover on campervans and caravans.

business insurance referral program

A company with strong brand awareness and experience-based, word-of-mouth advocacy in its customer base, a referral is a key acquisition channel for The AA. Through their refer-a-friend program , their customers receive a choice of a £20 Amazon or M&S voucher for each successful referral. The referred-in customer need only buy AA breakdown cover on an annual basis online, and both parties will be rewarded within 6 weeks. Referrers can earn up to £240 per year.

Zego is a UK-based unicorn in commercial motor insurance for businesses, providing cover for everything from entire fleets of vehicles to self-employed drivers and rider s. Zego, uniquely offers micro-insurance policies for self-employed couriers, delivery drivers, van drivers, and private hire vehicles. They have sold over 40 million policies so far and insured over 400,00 vehicles.

business insurance referral program

Zego’s referral program rewards their existing customers with choices worth £10 and £50 for referring a new customer for a monthly and annual policy, respectively. Zego has employed a ‘cash-is-king’ mentality and ensured there is a PayPal option among the reward choices.

6. Square One

Established in 2011 and based in Vancouver, Square One offers uniquely customizable property insurance for homeowners, landlords, and tenants. Square One customers, can personalize their limits, coverages, and deductibles. Put plainly, they can choose what to insure and how much to insure it for. Winner of the Best Home Insurance Agency – Canada at the Wealth and Finance International Global Insurance and Risk Management Awards 2022, Square One is a global leader in the NA region in the insurance sector.

business insurance referral program

Square One incentivizes referred-in customers to convert fully by offering rewards at different stages of the journey. Their customers receive a $25 account credit when their friend buys a policy. The new customer will also get a $10 Amazon gift card for getting a quote.

7. APRIL Insurance

APRIL is the leading wholesale insurance broker in France. Established in 1988, they have a network of 15,000 partner brokers, are operating in 16 countries, and had revenue of more than €544M in 2021. April strives to offer the best service in asset management, loan insurance, foreign health insurance, property and casualty niche insurance, and personal protection for individuals, professionals, and VSEs.

business insurance referral program

April’s customers can invite their friends and relatives to take out an April policy and both the existing client and their friend have the choice of a Cadhoc gift card or PayPal cash worth up to €50.

8. Allianz Insurance Malaysia

With around 155,000 employees worldwide, the Allianz Group serves 126 million customers in more than 70 countries. Allianz Insurance is the market leader in Germany and has a strong international presence. In the 2021 fiscal year, the Allianz Group achieved total revenues of approximately 149 billion euros.

business insurance referral program

The Malaysian side of the business offers a referral program enabling members to earn cash rewards by referring. Upon a successful referral for personal insurance, customers will earn a referral fee equivalent to 50% of the policy’s First Year Commission (FYC).

9. Direct Assurance

Created in 1992, Direct Assurance is the French leader in online Auto insurance, Direct Assurance but also offers Home and Motorcycle policies. The company is a 100% subsidiary of the AXA group. Direct Assurance has been designing solutions adapted to the budget and needs of its customers for cars, homes, and motorcycles for more than twenty years. Offering two innovative products, the company is staying on the cutting edge of claim response. Their mobile service application allows customers to declare and follow the management of their claim, directly from their mobile. The YouDrive offer is the first connected car insurance in France. Principally, this can reduce the amount of the monthly insurance premium by up to 50%.

business insurance referral program

Through their very basic referral program , existing customers can earn €20 when their family and friends take out an auto insurance policy. The new customer is required to enter the referrer’s promo code and policy number of the referrer when requesting a quote.  The new customer will, in turn, earn €20 as well. Rewards are delivered within 60 days of the first transaction.

10. Assurancevie.com

Assurancevie.com is an online independent insurance broker that offers life, pension, ​​PEA insurance, and succession management in France. Their products are managed and purchased completely online: 0% entry and exit, and only 0.60% annual management fees.

business insurance referral program

Their referral program is aimed at promoting their life and pension cover. Their basic program offers €70 or €80 to the referrer depending on which policy the referred-in customer takes out. For the new customer, €200 is offered in a range of formats – an arbitration mandate, equivalent value of free management, or direct payment – depending on the product that is taken out. 

As you can see, the referral process requires the completion of a long and detailed form. 

11. Aréas Assurance

Aréas Assurance is an independent group of mutual insurance companies based in France. Aréas offers a complete range of products including health, life, property, car, home and inheritance, both for individuals and professionals.

business insurance referral program

Aréas’ referral program is very flexible and new customers can be referred to a multitude of products. When an individual takes out an eligible product, the referrer will receive a €30 gift voucher. They can refer up to 5 times, so the limit to their reward is €150. 

When referring for a professional insurance policy, the referrer will earn €100 in vouchers, with a limit of €500. There is no reward for the new customer in either scenario and each new customer must have a minimum annual spend of €150 and €300 to qualify.

12. Marshmallow Insurance

An innovative insurtech company based in the United Kingdom, Marshmallow aims to make van and car insurance accessible and more affordable for as many people as possible. Founded in 2015, they are fairly new kids on the block but already boast a 4.5-star Trustpilot score.

business insurance referral program

Marshmallow customers who have had a policy for at least a month can find their share link in their account area. Through their referral program , their customers and the referred-in customers can receive a one-off £25 worth of gift vouchers for Amazon. The reward structure is very simple and does not account for the cost of different policies.

13. Vitality Car

Another area of the business in which Vitality is employing rewards marketing in the United Kingdom is across its car insurance business.

business insurance referral program

When referring friends and family to their car insurance policies, Vitality customers can receive a £100 amazon voucher. O nce the friend places an online order and after a cooling-off period, the reward is sent.  Due to FCA restrictions, the referred-in customer does not receive a reward, however, with the Vitality brand using rewards-based incentives throughout the customer’s contract period, the new customer has plenty of reasons to convert.

14. BUPA Australia 

Bupa is an international healthcare giant serving over 38 million customers worldwide, principally operating in the UK, Australia, Spain, Chile, Poland, New Zealand, Hong Kong SAR, Türkiye, Brazil, Mexico, the US, the Middle East, and Ireland. 

While a huge international company with areas of the business dedicated to a number of sectors within healthcare, Bupa’s Australian health insurance branch offers cover for customers working, visiting, and studying in Australia. With accessible healthcare through a sophisticated app, Bupa AU makes it easy for customers to benefit from their cover while they’re in Australia.

business insurance referral program

Through their referral program , referred customers must purchase a combined hospital and extras package for 30 consecutive days before their referrer receives a AU$100 e-gift card. E-gift cards can be exchanged at hundreds of retailers – from large department stores to electronic stores to food delivery services. Though the referred-in customer will benefit from Bupa’s latest offers, there is no direct reward for them and only existing customers can refer their friends.

15. CNR Insurance

CNR is an independent insurance agency based in the United States and representing several highly rated insurers for Personal, Commercial, and Life-related insurance products. CNR aims to, not only sell insurance but work closely with clients to help them make important and informed decisions when it comes to protection and their future.

business insurance referral program

Their refer-a-friend program offers US$25 to referrers for each new customer acquired, no matter if the person referring is a customer or not. The new customer does not appear to get a reward. 

While we have no insights as to how well this program performs, we think this is a classic example of a very basic program that could drive more if upgraded. For example, while the copy explains how it works, it’s just a form asking who referred you and doesn’t really grab a visitor’s attention or showcase the rewards.

16. Assurpeople

Assurpeople.com is one of the commercial brands of LSA Courtage, a leader in property and casualty insurance brokerage (auto and home) for individuals in France. Assurpeople offers customers tailor-made products, partnering with AXA, GENERALI, Allianz, and SwissLife. Though they specialize in cover for damaged, canceled, and young driver car insurance, their cover options range from home to, pet and funeral. With a 100% online journey, their focus is on speed and simplicity for their over 200,000 customers.

business insurance referral program

Their referral program has a tiered structure, whereby customers are rewarded depending on the policy the referred-in friend takes out using a tiered structure. While a typical tiered reward structure will pay out rewards in accordance with the value of the policies taken out, it’s hard to see the logic behind the structure here: for a car insurance referral the referrer will receive €25 and the new customer, €20 via cheque; for home, both parties get €15; and for health, both parties get €20.

17. Excalibur Insurance

With a fundamental and overt ethical mission statement, Excalibur Insurance is an insurance company based in Ontario, Canada. Though specializing in home and motor insurance, they also offer health, farm, business, recreation, and other – more niche – cover.

business insurance referral program

Their referral program provides three types of reward when a referred-in friend asks for a quote and both the referrers and friend: (i)  receive a C$20 Tim Hortons voucher; (ii) are entered into a monthly draw with a prize of C$100; and (iii) are also entered into an annual draw to win a prize worth $2500. While the rewards are enticing, the referral process is very simple and requires that the referred-in friend either ring for a quote and name the referrer or fill in a very short form with contact details and the name of the referrer.

18. La France Mutualiste

business insurance referral program

Their referral program aims to perpetuate the family-orientated spirit of the brand and reward customers for referring friends to life, automotive, home, and health insurance policies. The rewards differ according to the policies with:

  • A €30 TotalEnergies petrol card for referring to motor, home, or health insurance policies;
  • A free month for new motor, home, or health insurance customers, the reward is one month free.
  •  0% charges on their first payment for pension and savings customers with the referrer getting a voucher worth €50. 

19. By Miles

By Miles is the UK’s leading pay-by-mile auto insurance provider, making car insurance more cost-effective and easier to manage for people who drive less. Voted UK’s best car insurance provider & best insurance app at the Insurance Choice Awards 2020 and 2019, By Miles capitalized on the change in status quo of the pandemic. 

business insurance referral program

Through their referral program , both parties receive a £100 credit for free miles for each new customer who purchases a policy.

20. Euro Assurance

business insurance referral program

Their referral program allows their policyholders to refer someone to auto and motorcycle cover. As soon as the new customer’s contract is validated the referrer receives a bonus of €40 (by bank transfer) and the new customer will benefit from a €30 reduction on their next monthly payment.

21. Protect Line

Established in 2010, Protect Line is one of the UK’s leading fee-free Life Insurance Brokers with over 30,000 five-star reviews on Trustpilot and multiple consumer awards. Specializing in life insurance, they have protected over 200,000 families with unexpected emergencies. 

business insurance referral program

Their referral program is only available for existing customers to refer their friends and family to a life insurance policy or critical illness Cover with Protect Line. The process is fairly simple – refer friends or family, they take out a policy, and after they’ve held the policy for a minimum of 3 months the reward is sent. There is no limit to the number of referrals one can have and, if they choose to take out a policy, the existing customer will be eligible for a £40 high street ( by lifestyle ) voucher each time. There is no reward for the referred-in customer.

22. L’Olivier Assurance

Founded in 2010, L’Olivier Assurance is a key player in the motor and home insurance industry in France. A subsidiary of the Admiral Group, L’Olivier has over 10,000 employees and have been voted among the top workplaces in France for 7 years running. They offer a  100% digital service, very competitive prices, and flexible cover. With 6 million policyholders in Europe and the backing of Admiral Group, L’Olivier is set up for success.

business insurance referral program

Their referral program – or offre-parrainage – is extremely visible on their website navigation, situated just below the fold on their homepage. The program is behind a customer login but is advertised to all website traffic, “earn up €400 through sponsorship”. Existing customers can earn €80 or €40 for each successful car or home insurance, respectively. The referred-in friend will receive €20, across all products, paid via bank transfer.

23. Purely Pets Insurance

Purely Pets Insurance is a pet insurance business that operates as part the Markerstudy Group in the global market. Purely Pets Insurance, as a participant in this competitive market, aims to provide comprehensive and affordable pet health insurance policies for cats & dogs.

business insurance referral program

Their referral program rewards both the friend and referrer with £15 when the new customer takes out a policy through their friends unique share-link. The reward comes in the form of a choice  of either an Amazon voucher or PayPal account credit after the two month cooling off period, and there is no limit to the number of referrals a customer can make.

24. TruShield

TruShield Insurance stands out as a provider of insurance options tailored for small to medium-sized businesses across Canada. They are committed to delivering affordable and adaptable insurance solutions designed to address the distinct challenges faced by entrepreneurs and small business owners. TruShield’s insurance offerings, including cyber risk insurance, professional liability insurance, and general business insurance, are crafted to support the growth and resilience of small enterprises.

business insurance referral program

TruShield encourages its customers to participate in their referral program , rewarding them for spreading the word about their services. Both the referrer and the referred friend receive a $25 Amazon voucher for each successful referral, with a maximum of five rewards per customer, provided the referred friends qualify for a quote and complete a successful referral.

Hopefully, the above summary of insurance referral programs has convinced you how many leading insurers and brokers are already looking at referral marketing to drive customer acquisition. If you’re thinking of starting a program yourself or looking at how you can improve the performance of your existing program, we’d love to talk. And if you work at one of the companies mentioned above and your program is not already powered by Buyapowa, we’ve got plenty of ideas as to how you could improve the performance of your current program, so feel free to reach out .

  • January 2, 2023
  • / Alex Pandya
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Insurance Referral Program: 6 Ways To Create Brand Advocates

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Health insurance agencies and brokerages seek new clients to grow their business, and understandably so.

As a result, many of them make prospecting a continuous top priority while focusing on traditional marketing and content marketing outreach. While this approach can certainly help you get the results you’re hoping for, you have the potential to achieve even better results by combining prospecting with insurance referral marketing.

Successful insurance referral marketing programs can bring tremendous benefits to your insurance business, such as increased customer engagement, customer loyalty, and brand awareness. What do these generally yield? More repeat business and revenue. 

To create the perfect referral program for insurance agents, you must first convert prospects into clients, and then convert those clients into brand advocates. Ready to learn how you can create a successful referral marketing program that yields the best results? Let’s look at the benefits and tips for doing so!

3 Benefits of Insurance Agent Referral Programs 

1. increased customer engagement.

Clients who receive recommendations from trusted sources typically yield positive results. They are more inclined to make repeat purchases or even recommend your company to others because they know your brand and its benefits. Referred clients have a 16–25% higher lifetime value compared to non-referrals and are 18% more likely to remain loyal over time.

2. Customer Loyalty 

Clients need to feel valued, and, if they don’t feel that way, you risk losing out on repeat, loyal business. By giving consumers a more personalized contact experience and making them feel valued, insurance referral marketing programs enable you to identify, track, and reward your most devoted clients.

3. Brand Awareness

Clients are picky about the brands they choose to use. So, how do insurance agents get clients for their referral program? Start by creating a brand thats viewed as sincere and genuine. 

When your customers talk about your company and share your authenticity, it enhances your reputation and has a big impact on customers, including more word-of-mouth marketing and brand awareness.

6 Insurance Referral Program Tips

1. master referral email marketing outreach with automation.

Growing your insurance agency or brokerage isn’t as easy as emailing all of your prospects at once and waiting for replies to come in. It takes a lot of time to build an insurance agent referral program comprised of trustworthy relationships with prospects, which is time that you don’t often have.

However, we have good news! Modern email marketing solutions and automation make it easy to build your insurance referral program without spending an absurd amount of timein your inbox. By segmenting your email marketing list, and if you have the right software, you can deploy automation to follow up with each client so you don’t have to do so manually. This makes it much easier to automate your requests for referrals, enabling you to still receive new referrals without spending unnecessary time hunting them down.

If you’re looking for more tips on using email to convert cold insurance leads, check out the only guide you need here !

2. Learn To Control the Conversation for More Insurance Referrals

Before you pick up the phone to sell insurance, it’s crucial to have an established plan and understanding of the conversation set to take place.

For instance, the best insurance salespeople can control the conversation in a way that not only helps gain new referrals but cultivates great relationships with their clients to generate referrals for them. They use each interaction to learn more about their prospects, and they use that personal information to inform their future actions and personalize their outreach. 

At the same time, they are never manipulative or too pushy. The best agents strike a careful balance by being consultative and helpful, but never too forceful. Remember, pushing the hard sell is often not as effective as cultivating strong relationships with your clients. In turn, they may not only repay your services and kindness with their business, but with new insurance referrals from word-of-mouth marketing.

If you’re curious about this mysterious “art of controlling a conversation” while selling insurance, take a look at this guide designed by industry experts!

Build the Foundation for Successful Referral Marketing

3. Be Personal in Your Approach for Both New and Existing Clients

Personalization is becoming increasingly important for all businesses, and insurance is no different. By offering personalized outreach to your prospects, you can increase the chances that they grow into loyal clients and direct newer clients to you.

Remembering birthdays, family milestones (e.g., a spouse is aging into Medicare), customer milestones (e.g., a two-year anniversary), pet names, and more goes a long way toward making prospects feel as though you genuinely care about them. And you can bet that this genuine and personable approach will carry over into their conversations with other potential insurance referrals.

If that all sounds like a tall order, don’t sweat it. By investing in a modern customer relationship management (CRM) solution , personal data like this is always just a few clicks away to help you craft the perfect insurance agent referral program.

4. Anticipate Clients’ Needs

Selling insurance is highly complex, as you may know. You need to stay ahead of new regulations and plans, relay that info to your prospects, aim to become their trusted advisor, and become their go-to for delivering insurance referrals. That’s far from easy, but with a CRM driven by automation, you not only take the burden off your shoulders but also expedite many processes.

Follow Up With Your Prospects Throughout the Year

Another great way to stay on prospects' radar and build referrals is to follow up with each one several times a year. This allows you to build a better relationship with your clients; the more touch points, the better the relationship and the greater their trust in you, resulting in more insurance referrals.

5. Build a Rewarding Insurance Referral Program 

By building an insurance referral marketing program that rewards clients for new business they send your way, you can grow your business even further.

Consider implementing the following: 

Referral Rewards: Establish a program that rewards those who share referrals with you. As word spreads, you may see your referrals increase.

Referral Cards/Notes: Create a “share a referral” card with your network to make it easier for them to send potential new business your way.

Thank New Clients/New Referrals With a Gift: Introduce reciprocity and stimulate more sales (and more referrals) with a thank-you gift for new clients. It can work wonders.

P.S. There are plenty more insurance referral marketing tips as well that we’ve noticed to be highly successful year in and year out!

6. Get Involved in the Community 

The more you put yourself out there, the more name recognition you’ll generate.

Add value to the community by participating in local events, accepting sponsorship opportunities, and attending networking events

Building Relationships Locally

Pharmacists, health practitioners, and workers in local health food or vitamin and nutrition stores come in contact with many different people every day and throughout the month. Develop relationships with these folks and you could build a substantial pipeline of referrals. If you become a friend to these connectors, they could be your bridge to connect with many in the market for Medicare .

Start Creating Your Referral Marketing Engine Today

Running any business is hard work as it is. Running a health insurance agency or brokerage is especially difficult as insurance plans change and customers hop from plan to plan every year.

By using a referral program for insurance agents to engage and nurture prospects, add value at every corner, and differentiate your health insurance business by being personable, you can transform your clients into bona fide brand advocates who even sell your products on your behalf.

To learn more about the easiest way to create and sustain a powerful referral marketing engine, learn more about our top insurance referral marketing tips and techniques today!

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Incentive Strategies To Boost Referrals For Your Insurance Business

January 4, 2024

Discover the importance of insurance referrals and get practical tips to create the best referral program for your customer base.

Referrals are lifelines for your insurance business. When current customers refer their friends and family, the likelihood that those individuals will convert to customers is much higher than if a random person stumbled on your website. But motivating your customers to refer their friends isn’t always easy. 

Implementing an insurance referral program offering incentives when customers refer their friends could help you boost referrals and even strengthen customer loyalty and conversions. Learn how to build an effective referral program that will benefit both your customers and your business.

The importance of Insurance referrals

Gaining referrals to your insurance company is undoubtedly one of the most effective ways to grow your customer base. By implementing an insurance referral program, you can tap into the power of word-of-mouth marketing and leverage the trust and influence of your existing customers. When satisfied clients refer their friends, family, and colleagues to your insurance services, it not only expands your customer base but also establishes a sense of credibility and reliability. 

Moreover, a well-designed referral program can incentivize and reward both the referrer and the referred, creating a win-win situation for all parties involved. With a robust insurance referral program in place, you can amplify your brand reach, enhance customer loyalty, and ultimately drive sustainable business growth.

These are the highlights of insurance referrals and what they can do for your business:

  • Reduce customer acquisition costs: While you should spend a little bit of money on incentivizing referrals, you’ll end up saving money overall when you focus your marketing spend on referrals over other, less promising lead-gen strategies.
  • Increase conversions: Referrals are more likely to convert to paying customers than other types of leads you receive. The more referrals you get, the faster you expand your customer base — and profitability. 
  • Focus on specific goals: Incentive projects encourage employee efforts toward one goal, allowing focus and boosting productivity in helping your company reach that goal faster. 
  • Build trust faster: When a current customer refers their friend to your insurance company, they already know they can trust your company. You don’t have to spend as much time building trust and proving you can deliver the services they need. 
  • Establish loyalty among existing customers: When existing customers recommend your business to their friends, those customers will automatically feel a sense of loyalty to your company. They may think of all the reasons they like your business, and sharing those reasons with their friends and family establishes a stronger relational connection to your brand.

A guide to creating the best Insurance referral program 

While having an insurance referral program is important, it won’t do much good unless you structure it optimally to engage and incentivize your customer base. Follow the steps below to create a powerful referral program that motivates your customers to refer high-quality leads to your business. 

1. Have a Strong Foundation First

Before creating your referral program, consider whether your customers would even want to refer their friends to your business. 

Of course, your business probably puts effort into creating a positive customer experience. But if you’re not going above and beyond, customers may not be motivated to recommend you. 

Take time to ensure that as many of the following statements as possible are true before creating your referral program:

  • You have a good amount of positive reviews on Google Business Profile . 
  • You provide excellent customer service. 
  • You have competitive prices. 
  • Customers generally seem satisfied with your services. 
  • Your business has the resources and infrastructure to handle an influx of new customers. 
  • You can afford to provide a monetary incentive for referrals. 

These elements create a strong foundation for your company, increasing the likelihood of customers referring their friends.

2. Understand Your Customer Base

Referral programs should look different for different types of insurance companies. Personalizing your program to your customer base will improve its effectiveness. 

Analyze your customer data to determine the following information:

  • How your customers communicate with friends (text, email, phone call, or face-to-face)
  • How customers initially find your insurance company (online, location, ads, organic search, etc.)
  • The types of rewards that would motivate your customer base (insurance discounts, gift cards, etc.)
  • Your current customer attrition rate (i.e., the rate at which you lose customers)

3. Review Your Marketing Data

Your insurance referral program likely won’t be effective for every customer. Some customers won’t be interested in referring friends or earning rewards. As a result, reviewing your marketing data in advance and understanding who you should target in the program can help you avoid wasting time. 

The customers most likely to participate in your referral program are those who:

  • Have been loyal for some time, probably longer than a few months
  • Are satisfied with their experiences
  • Have left you positive reviews
  • Have communicated directly with your agents throughout their services

4. Create the Program Rules

Once you’ve gathered as much data about your customer base as possible, it’s time to start building your referral program. For your program to be effective, it must have clear, simple rules that the average customer can quickly understand. 

Your basic referral program may follow this structure:

  • A customer refers their friend to your insurance company. 
  • That friend requests a quote, purchases an insurance policy, or completes another desired action.
  • The original customer and their friend receive an incentive.

You can customize this structure to suit your marketing goals. Just ensure its rules are detailed yet easy to follow, leaving no room for manipulation or confusion. 

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5. Determine Rewards and Incentives

You’ll also need to determine the specific referral incentives you will offer. These should be valuable enough to effectively motivate referrals yet affordable enough not to overwhelm your marketing budget. 

You can start by calculating how much you’re currently spending on marketing conversions. Then, determine a monetary amount within a reasonable range of this figure. 

While you can pay cash as an incentive, offering a digital gift card may be wiser. Your customers won’t get the impression that you’re paying them for services; instead, they’re simply receiving a gift for recommending your business. 

6. Market Your Program

After finalizing the details of your insurance referral program, begin marketing it to target customers. Send ongoing reminders of the program, and be sure to highlight how easy it is for customers to participate.

Insurance referrals often lead to multi-line policies , which means more value for your customers and more income for your insurance agency.

Automate Your Referral Rewards With Giftbit.

At Giftbit, we make incentivizing referrals a piece of cake. You can embed Giftbit directly , then into your existing user interface trigger automatic gift card rewards when customers successfully refer their friends. Better yet, Giftbit requires no technical expertise to integrate into your insurance referral program.

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7 Creative Insurance Referral Program Ideas to Try in 2021

by Nick Bondaug-Winn | Apr 27, 2021 | Agent Advice | 0 comments

insurance referral program ideas

Keep your insurance referral programs fresh with these seven ideas to earn you more business opportunities.

If you’re new in the insurance field, or have been an insurance agent for years, coming up with creative insurance referral program ideas can be challenging. On the surface, referral programs seem very straightforward: get other people to send you known leads. There are tried and true methods to implement these types of referral programs. But it’s worth revisiting some old ideas to see if there are new trends, technologies, and systems that can be added to your referral programs to keep them fresh and effective.

insurance referral program ideas

Track Your Referrals

Before getting into the details of insurance referral program ideas, it’s critical that you develop a tracking system. It’s as important to track your referral data as it is your sales numbers. Tracking referrals can show you where your best referrals come from. Tracking whether a referral came from a partner business, a new client, or a social media campaign , can let you know what referral streams are working best. It can also help you establish a referral reward program by incentivizing each referral. This can be anything from a referral fee for a partnering business, or a gift card for your client who has connected you to a new prospect. If you have a repeat referral stream, add levels of bonus incentives.

insurance referral program ideas

Take Advantage of Your Email Signature

In addition to your phone number and email address, add a link to your email signature that lets people schedule a call with you directly, using software like Calendly. Software like this integrates with your digital calendars and lets current and prospective clients know when you are available to take their call. When someone asks your client for an insurance recommendation, they can forward an email you’ve previously sent and the prospect can set up a time to talk at the earliest convenience.

insurance referral program ideas

Leverage Social Media and Technology

Co-sponsor a free webinar or workshop with other business partners. Drop your contact information into the chat feature or add it to your background using a filter or even a low-tech white board. Meet younger prospects online where they spend their free time. Start an informative TikTok channel where you debunk or demystify insurance industry secrets. Join Clubhouse, an audio-only chat room experience that lets people gather to discuss various topics. In your case, collaborate with a few experts in your field and create a space to talk shop and inform listeners. With Clubhouse you can open the conversation up to listeners who can ask questions and offer their own experiences.

insurance referral program ideas

Make Sure Your Contact Information Is In Your Client’s Phone

Some of the best insurance referral program ideas are the simplest. An easy-to-find phone number could be the difference between you and a competitor earning a referral. With every new client, make sure your contact information is saved in their cell phone. Send them a text with your information attached so they can easily save it in their contacts. The next time a friend or family member asks them for a recommendation for an insurance agent, there will be no barrier to share your contact information. Your client won’t have to hunt down your info in an email, or look for the business card in their cluttered wallet. Your contact information will be at their fingertips.

insurance referral program ideas

Thank Your Referral Sources

When you earn a referral, take time to thank the person who sent the new prospect, especially if the prospect turns into a new client. Social media is a great way to publicly thank your referral source and also welcome a new client. Simple copy like, “So grateful for John for connecting me with his sister-in-law Barbara. Welcome to the (insert agency name) family, Barbara! We look forward to working with you!” Add a photo of the clients if you have one, and tag each of the clients names. Be sure to seek permission before posting any personal information.

If your referral came from a partnering company, send a shareable gift like a fruit and cheese basket or a box of chocolates. Your referral source will undoubtedly share their gift and strike up conversation about you and your insurance agency. You might even get another referral from it!

insurance referral program ideas

Refer Clients to Other Businesses

Insurance referral program ideas don’t have to be a one-way street. Building partnerships with other types of insurance agents and other adjacent professionals can build a two-way referral system. When talking with your auto-insurance client they may share that they are looking for life insurance as well. Connect them with someone in your professional network. The partner will appreciate the referral and no doubt remember you the next time one of their clients is looking for auto insurance. This works great with connections at financial institutions, real estate agents, car dealerships, and accountants, just to name a few.

insurance referral program ideas

Share Customer Success Stories

Ask a client if you can share their success story. Did you just save someone $500 in insurance premiums? Showcase the success story on your social media accounts by giving a real life example of how you saved money for your client. Use specific details like “So glad to save Jim and Sandy $500 on their auto insurance. These two were such a fun couple to work with and I’m thrilled they can put that money toward decorating their nursery.” It’s very important to clear the copy with your client first, to make sure they are okay with the information you are sharing. While it’s not a direct referral, the success story acts as a customer testimonial and allows prospects to see a real world illustration of what you may be able to do for them.

Generating leads through referral programs is a great way to add to your sales funnel. Another excellent way is to add double-verified leads from HBW Leads. HBW Leads provides cold calling experts and technology to help your business grow.  Connect with them today!

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Unlocking the Potential of Referral Programs for Insurance Agents: A Strategic Guide

In the competitive landscape of the insurance industry, where digital marketing strategies are extensively discussed and deployed, the power of personal recommendations through referral programs often remains underutilized. Yet, for insurance agents seeking sustainable business growth, referrals can be a goldmine . This article delves into the strategic implementation of referral programs, offering insurance agents a roadmap to harnessing this potent tool for expanding their client base and enhancing brand loyalty.

The Value of Referral Programs in Insurance

Referral programs leverage the trust and satisfaction of existing clients to attract new ones. In an industry built on trust, a recommendation from a satisfied customer is far more compelling than any advertisement. Such programs not only lower customer acquisition costs but also increase the lifetime value of clients, as referred customers tend to be more loyal and profitable over time.

Designing an Effective Referral Program

1. set clear objectives.

Begin by defining what success looks like for your referral program. Objectives can range from increasing overall client numbers to boosting specific product lines. Clear goals help in tailoring the program’s structure and rewards to meet your business needs.

2. Offer Attractive Incentives

The right incentive can motivate your current clients to participate in the referral program. Whether it’s a discount, a service upgrade, or a tangible reward, ensure it’s valuable enough to encourage participation but sustainable for your business.

3. Make It Easy to Refer

The simpler the referral process, the more likely your clients will participate. Provide them with easy-to-use tools and clear instructions on how to refer friends and family. Digital solutions like personalized referral links or codes can streamline the process.

4. Communicate Clearly and Consistently

Effective communication is key to the success of your referral program. Explain the benefits and procedures to your existing clients through email campaigns, social media, and direct interactions. Transparency about how the program works and what’s in it for them will foster participation.

5. Track and Analyze Performance

Implement tracking mechanisms to monitor referrals, successful conversions, and the performance of different incentives. This data will be invaluable in refining your program over time, allowing you to adjust strategies and rewards for optimal results.

6. Recognize and Thank Referrers

Acknowledging your clients’ efforts in bringing new business is crucial. A simple thank you note, a public recognition on social media, or an additional reward for successful referrals can go a long way in maintaining engagement and loyalty.

Overcoming Challenges

While referral programs hold great promise, they come with challenges. A common concern is the potential for perceived intrusiveness. Address this by ensuring your clients understand the program is optional and by emphasizing the value it offers to those they refer. Clear, consent-based communication strategies are essential to navigate privacy concerns and maintain trust.

Success Stories

Highlighting success stories within your referral program can inspire participation. Share testimonials or case studies of clients who’ve benefited from your services and the referral program . This not only showcases the program’s value but also reinforces the positive impact of your insurance solutions on clients’ lives.

A well-designed referral program can transform satisfied clients into powerful advocates for your insurance business, driving growth and building a more loyal client base. By focusing on clear objectives, attractive incentives, ease of use, and effective communication, you can unlock the full potential of referrals. Remember, the foundation of a successful referral program is exceptional service; satisfied clients are your best marketers.

In the insurance industry, where personal relationships and trust are paramount, leveraging the power of referrals through a thoughtfully crafted program can be a game-changer. Start building your referral program today and watch your client base, and your business, grow.

This article is a collaboration between Carl Willis and OpenAI’s ChatGPT. Created on February 12, 2024, it combines AI-generated draft material with Willis’s expert revision and oversight, ensuring accuracy and relevance while addressing any AI limitations.

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A comprehensive guide to small business insurance: Here’s how to safeguard your company

business insurance referral program

Starting your own business requires a significant investment of both time and money. Millions of people continue to step up to the challenge with 33 million small businesses active in the U.S. as of 2023. However, without a proper business insurance plan in place, you risk losing everything you worked so hard to build. 

According to a survey released by Next Insurance , 90% of business owners weren’t sure if they had adequate coverage. Worse, 29% had no business insurance coverage at all, leaving their business and investments vulnerable to natural disasters, theft or lawsuits.

Small business insurance provides critical protection for your business, but there are several different types of coverage. Understanding the options available and what to expect in terms of cost can help you find the right coverage for your business (and your budget).  

7 common types of small business insurance

A customer visits your store and slips and breaks his arm while browsing the store aisles. 

A fire breaks out and spreads to your warehouse, destroying your inventory. 

Or a thief breaks into the office and steals your laptop. 

Whatever the case may be, there are many unexpected and horrifying scenarios that can threaten your business. 

Like your personal car or homeowners insurance policy, small business insurance acts as a safety net for your business, protecting your business property and assets against common disasters or accidents. 

Whether you’re the sole employee of your own company or you have dozens of workers, your small business likely needs some form of protection. What kind of insurance your business needs depends on the type of work you do, the size of your operation and your location. These are some of the most common business insurance options:

Business owners policies (BOPs)

A BOP is actually an insurance package that combines several forms of coverage together, making it a simple option for small business owners. BOPs usually include general liability, property insurance and business interruption insurance. 

BOPs are often more cost-effective than purchasing each type of coverage separately, and you can customize your BOP with optional add-ons, such as cyber risk insurance or commercial auto coverage . 

General liability

General liability insurance protects you against financial losses that may result from bodily injuries or property damage that occur due to your business. For example, if a client is injured on your business premises, general liability coverage would help cover your legal bills, the medical bills of the affected person and any damages resulting from a lawsuit. 

Product liability

If you produce or sell products, product liability coverage protects you against losses that result from products that you make, distribute or sell. For example, if a customer needs medical attention after getting hurt by a product you manufactured, product liability insurance would help you with the legal and medical expenses. 

Professional liability 

Professional liability insurance covers your legal expenses and damages related to issues that result from your professional negligence or mistakes. 

Commercial property

If your business property, equipment or inventory is damaged by a storm, fire or theft, commercial property insurance will reimburse you for your losses. 

Home-based business

According to the Small Business Administration , more than half of all small businesses are home-based. If you run your business from your home, you’ll need separate coverage from your personal homeowners or renters insurance policy . 

Home-based business insurance provides added protection for your business equipment and supplies, as well as protection against liability issues that aren’t covered by your personal policies. 

Workers’ compensation

If you have employees, you’re usually required to have workers’ compensation insurance. Workers’ compensation pays for your employees’ medical care and a portion of their wages if they’re injured or become ill while working. 

Other types of coverage

Beyond the seven main types of small business insurance, there are many other types of coverage. If your company works in particular industries or has specialized needs, you may need additional insurance. Some common add-ons include: 

  • Business interruption: If your business were forced to close due to a covered reason, such as storm damage, business interruption coverage will help cover your lost income. 
  • Commercial auto: If you have vehicles that you use for your business, including delivery trucks, you’ll need a separate commercial auto policy. 
  • Cyber liability: For businesses that sell or store customer information online, cyber liability insurance is a must. If your information — or your customers’ details — are compromised, cyber insurance covers the costs of system recovery efforts, notification expenses, fines and identity theft protection for your affected customers. 

How to purchase small business insurance 

To purchase small business insurance, follow these steps: 

  • Think about what coverage you need: Consider what kinds of insurance you need. For example, if you have company vehicles, you’ll likely need commercial auto coverage in addition to general liability and professional liability policies. And if your business operates in areas that are prone to natural disasters, such as floods or earthquakes, you may need separate commercial policies for those issues too. 
  • Shop around: Prices can vary significantly by insurer. Many insurers allow you to request quotes for small business insurance online; enter information about your company’s age, revenue, industry and employees, and the insurer will give you an estimate for your desired coverage. 
  • Contact an agent or broker: Once you know what kind of insurance you need, you can reach out to commercial insurance brokers or company agents to get exact pricing details and purchase a policy. 

According to Mark Friedlander, director of corporate communications with the Insurance Information Institute , a broker can be a valuable resource as you begin the process. 

“A qualified broker can help a business owner collect all the information they will need to apply for a policy, and help them comparison shop among several options and quotes,” he said. “Before hiring [a broker], we recommend reviewing the broker’s background and experience as well as the services provided and any fees charged.”

The National Association of Insurance Commissioners has a tool you can use to find insurance agents and brokers in your area. 

Small business insurance FAQs  

Do i need small business insurance if i’m just starting out.

Many people put off purchasing coverage because of the expense, but according to Chris Rhodes, chief insurance officer of NEXT Insurance, that mindset could be a costly mistake. 

“Purchasing insurance should be one of, if not the first, things on your checklist as a new business owner,” he said. “Regardless of revenue or investment level, having insurance is crucial for protecting your future livelihood.”

At a minimum, simple BOP coverage or other basic forms of coverage are a good starting point. 

“As a rule of thumb, small business owners should purchase general liability or professional liability coverage as a first line of defense,” Rhodes said. 

How much does small business insurance cost?

The cost of small business insurance depends on several factors, including your company’s location, size and industry. BOP coverage, which bundles common insurance types onto one simple policy, typically costs between $40 and $170 per month.

What factors affect small business insurance costs?

Several factors affect cost, including: 

  • Service or product provided: Certain industries or business types, such as those in construction or transportation, are more likely to be involved in accidents, so premiums tend to be more expensive to offset the higher risk. 
  • Location: If you live in an area with a high cost of living or with a higher-than-average crime rate, your premiums will typically be higher. 
  • Size: If you have employees, your premiums will be much higher than that of a business owner who is a solopreneur. The larger the company, the more expensive your premiums will be. 

Does my state require business insurance?

If you have employees, federal law requires you to have workers’ compensation, unemployment and disability insurance. But in some states, certain professions have additional insurance requirements. 

For example, in Colorado, physicians are required to have malpractice insurance. In Oregon, 

lawyers must maintain malpractice insurance with the state Professional Liability Fund. 

Visit your state professional association or regulatory commission to find out what coverage you’ll need. 

Do freelancers need business insurance?

Freelancers can benefit from business insurance, even if they don’t work in-person with customers. Basic coverage, including professional liability coverage, can protect against issues like lawsuits over mistakes or errors. 

The takeaway  

To ensure your business isn’t stalled or disrupted by weather, theft, accidents or lawsuits, small business insurance is a crucial purchase. As you begin shopping for insurance, request quotes from leading small business insurance companies . 

“As a general rule,” Friedlander said, “small business owners should get business insurance quotes from at least three different companies.”

Shopping around will help you find the best coverage at the lowest rate.

EDITORIAL DISCLOSURE : The advice, opinions, or rankings contained in this article are solely those of the Fortune Recommends ™ editorial team. This content has not been reviewed or endorsed by any of our affiliate partners or other third parties.

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Referral Fees: A Multi-State Overview

Referral system, refer a friend, a loyalty program. Group of people or customers are holding phones and join invitations. Trendy vector illustration for banners, landing page template, mobile app.

No matter the business, customer referrals are always a welcome way to expand client bases and build trust within the marketplace. This is certainly true within the insurance space, where it is common practice for producers to incentivize friends, family and business partners to deliver prospects in return for referral fees. But here is the rub: Oftentimes these referral sources are unlicensed individuals, in which case the payment of referral fees is fraught with regulatory challenges that differ from state to state.

While referral fees directed to unlicensed persons are, for the most part, legal, they tend to be restricted in terms of the amount that can be paid, the conduct of the unlicensed referral source, and the tie between the referral fees disbursed and the sale of insurance. The analysis is truly state-specific.

The NAIC’s Take on Referral Fees

Back in February 2000, the National Association of Insurance Commissioners (NAIC) adopted the Producer Licensing Model Act (PLMA), which provides uniformity in statutory language relating to the qualifications, requirements and conduct of agents and brokers. With respect to compensation paid to unlicensed persons, the PLMA at Section 13 (Commissions), subsection D, reads:

“An insurer or insurance producer may pay or assign commissions, service fees, brokerages or other valuable consideration to an insurance agency or to persons who do not sell, solicit or negotiate insurance in this state, unless the payment would violate [insert appropriate reference to state law, i.e. citation to anti-rebating statute, if applicable].” (Emphasis added.)

For purposes of this language as set forth in the PLMA, to “sell” means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurance company; to “solicit” is defined as attempting to sell insurance or asking or urging a person to apply for a particular kind of coverage from a particular carrier; and to “negotiate” is the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers.

With few exceptions, a person or entity cannot do any of the above and act as an insurance producer without a state-issued license.

Having said that and within states that have adopted the PLMA, a producer may compensate an unlicensed referral source when any referral fee paid is not in violation of anti-rebating/inducement laws and assuming the unlicensed individual is not soliciting, negotiating or selling insurance.

As otherwise stated, paying referral fees to an unlicensed person is prohibited when that individual is engaged in conduct that would require a license. For producers, this is a real hot button issue because they are subject to regulatory sanctions if found to be aiding and abetting any unlicensed person or entity in the transaction of insurance.

Beyond the PLMA

States that have not adopted or have modified the PLMA have enacted statutes, regulations or issued guidance that result in varying requirements for producers looking to pay referral fees.

In New York, for instance, section 2115(a) of the New York Insurance Code provides that referral fees are allowed if they are not conditioned or contingent on the successful sale of a policy and the referring party does not discuss specific policy terms and conditions. The same is true in Texas, where sections 4005.053(c) and 4001.051(d) of that state’s Insurance Code authorize the payment of referral fees to unlicensed individuals pursuant to the identical caveats (e.g., policy terms or conditions may not be deliberated, and compensation cannot be based upon the purchase of insurance by the customer).

The payment of referral fees is even more limited in Pennsylvania. According to 40 PA Stat. § 310.72(b), in addition to the prohibition against discussing policy terms and conditions and in the case of referrals for insurance that is primarily for personal, family or household use, a referring person may receive no more than a one-time, nominal fee of a fixed dollar amount for each referral not dependent upon an actual sale of insurance.

As is the case in New York, Texas and Pennsylvania, almost all states allow producers to pay referral fees to unlicensed individuals that do not solicit, negotiate or sell insurance, assuming (1) payment is not conditioned on the sale of a policy and (2) the referral fee does not violate applicable anti-rebating/inducement laws. Regulators typically look at such conduct akin to an agent or broker purchasing leads.

The Danger Zone: Solicitation

It bears repeating: An unlicensed person cannot “solicit” insurance, which, according to the PLMA, equates to attempting to sell insurance or urging a prospect to

apply for coverage from a particular company.

While some state regulators broadly define “solicit,” as is the case in the PLMA, certain other states like New York and Texas have settled on a narrower interpretation. There, an unlicensed individual contacting a prospective insured is not “soliciting” for purposes of paying a referral fee, so long as insurance policy terms and conditions are not discussed with a potential insured and payment is not based on the purchase of insurance.

This begs the question: What would be deemed an unlawful solicitation by an unlicensed individual in states that follow the PLMA and do not provide relevant guidance? While perhaps not a comprehensive list of prohibited conduct, unlicensed persons seeking compensation for bringing a prospect to the table should surely steer clear from offering explanations, interpretations, opinions or recommendations concerning insurance carriers, coverages, exposures limits, premiums, rates, deductibles or payment plans.

That being said, how a regulator will ultimately interpret “solicitation” for purposes of referral fees requires a state-by-state review.

As for producers hoping to avoid regulatory headaches, they should seek counsel or otherwise review each state’s requirements for compensation of unlicensed individuals prior to engaging in any formal referral fee program.

Topics Texas New York

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business insurance referral program

Written By Mark Robinson

Robinson is founding partner of Michelman & Robinson LLP, a national law firm headquartered in Los Angeles. He is an insurance industry specialist who primarily represents retail brokers and agents. Phone: (310)299-5500 or [email protected].

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COMMENTS

  1. 15 Best Ways To Get Insurance Referrals For Your Business

    Create a customer-centric culture. The best way to get referrals is to show how much you love the customers you already have. (Tweet this!) Prioritizing customers should come from the top down, which means you, as the agency owner, set the standard for an excellent customer experience. If you have a robust plan for great customer service ...

  2. How to Start an Insurance Referral Program [+ Examples]

    An insurance referral program is a low-cost yet effective way to get promising new leads for your insurance business. Developing an effective insurance referral program requires strategic thought, creative referral ideas, and a little bit of work. But the results can be well worth it. There are many reasons why you should consider an insurance ...

  3. Thimble Affiliate Program for Business Insurance

    Our team will review your application and in most cases, applications to the Thimble Affiliate Program are processed within 10 business days. If your application is approved, you'll receive an email via Impact Radius confirming your acceptance and some tools to help you get started. For denials, due to the high volume of submissions, Thimble ...

  4. Everything you need to know about insurance referral programs

    An effective insurance referral program benefits from using technology tools to track leads and reward customers. To accomplish this, you can use a software spreadsheet, such as Excel or Google Sheets, or license referral-tracking software through a third-party vendor. At a minimum, you want to be able to track the lead source, lead contact ...

  5. How to Create a Referral Program for Your Insurance Agency

    6. Seek Feedback and Improve Your Process. Once your referral program is in full swing, it's important to evaluate it regularly. When you look for ways to improve your program, prioritize these three areas: How successful your program is compared to your team's effort. Client and referral satisfaction with the process.

  6. How to Start an Insurance Referral Program

    An insurance referral program is a strategy that involves incentivizing your clients or professional contacts to promote your business with their networks. You offer a reward for each referred lead that becomes a new customer. It's also common practice to reward the referral for signing up with their connection's unique identifier.

  7. 9 Easy & Effective Ways to Get More Insurance Referrals

    6. Set up a rewards program. People love free stuff, so rolling out some incentives could prove to be highly effective. Establish a referral program that offers rewards to your current customers when they refer people they know to your agency. For every referral, offer a small gift or gift card to your clients.

  8. How Insurance Referral Programs Work And Why You Need One

    An insurance referral program is a strategy insurance agents use that prompts their existing clients to refer others to their insurance agency. You can view a referral program as incentivized word-of-mouth marketing. ... business insurance, and real estate insurance, generating great results across multiple insurance categories. Referral ...

  9. Building A Business Insurance Referral Program

    A referral bonus goes a long way when you sell insurance at this price. To give $10 back on homeowner's insurance wouldn't make a big impact. In fact, giving $10 back on a traditional annual business insurance policy doesn't make much sense either. However, when you're the only company that offers General Liability insurance for as ...

  10. The 6 Best Referral Partners for Insurance Agents

    Insurance agents need referral partners that work with and understand their clients. Here are six go-to sources that will be your best referral partners. 1. CPAs and Financial Advisors. Accountants and financial advisors are invaluable referral partners for insurance agents. Their clients trust them to manage their wealth.

  11. Commercial Insurance Agency Referral Programs: Ideas That Work

    Commercial Insurance Agency Referral Programs: Ideas That Work. Many experienced marketers say that an insurance agency referral program is one of the single most effective marketing strategies you can pursue. Research bears this out: 91% of business-to-business (B2B) purchasers' buying decisions are influenced by word-of-mouth. 88% of B2B ...

  12. 8 Best Insurance Referral Programs Examples

    Leads acquired through referral programs have a higher chance of becoming actual customers. People are four times more likely to purchase from a brand referred to by their peers. Once you configure the underlying mechanics, insurance referral programs can be applied to any form, e.g., home, auto, business, and real estate insurance.

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    Our affiliate program enables you to monetize your online presence by offering customers small business insurance that works. No insurance license necessary. NEXT is 100% dedicated to small business. Our customers get: Tailored business insurance. Zero hassles.

  14. How to Build a Strong Customer Referral Program in 2023 [Ideas & Examples]

    Research how referrals are coming to your business. Determine what a 'good fit' is for your company. List possible customer referral sources. Identify channels to host your referral program. Make a plan to reach out. Identify your referral incentives. Create resources to alert your customers.

  15. Examples of referral programs at leading insurance brands

    Vitality is utilizing rewards marketing in various parts of its business. Through their well-thought-out and sophisticated Health and Life insurance referral program, customers earn a choice of either a £100 John Lewis or Amazon voucher for each referral.Once a policy is taken out, their referred-in friend will also receive a choice of a voucher worth £100 for John Lewis or Amazon.

  16. Insurance Referral Program: 6 Ways To Create Brand Advocates

    2. Customer Loyalty. Clients need to feel valued, and, if they don't feel that way, you risk losing out on repeat, loyal business. By giving consumers a more personalized contact experience and making them feel valued, insurance referral marketing programs enable you to identify, track, and reward your most devoted clients. 3. Brand Awareness.

  17. Incentive Strategies To Boost Referrals For Your Insurance Business

    A guide to creating the best Insurance referral program . While having an insurance referral program is important, it won't do much good unless you structure it optimally to engage and incentivize your customer base. Follow the steps below to create a powerful referral program that motivates your customers to refer high-quality leads to your ...

  18. 6 Lead Generation Tips for New Insurance Agents

    Finding new insurance clients isn't always easy, even for the most seasoned agents. That's why we've curated this list of six approaches to lead generation for insurance agents just getting started. 1. Ask for referrals. When it comes to the quality of a lead, a referral from a satisfied client can't be beat.

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    Generating leads through referral programs is a great way to add to your sales funnel. Another excellent way is to add double-verified leads from HBW Leads. HBW Leads provides cold calling experts and technology to help your business grow. Connect with them today! Keep things fresh with these seven insurance referral program ideas to earn you ...

  20. Unlocking the Potential of Referral Programs for Insurance Agents: A

    In the competitive landscape of the insurance industry, where digital marketing strategies are extensively discussed and deployed, the power of personal recommendations through referral programs often remains underutilized. Yet, for insurance agents seeking sustainable business growth, referrals can be a goldmine. This article delves into the strategic implementation of referral programs ...

  21. 10 High Performing Insurance Referral Program Examples to Copy

    A referral program, however, is not a one-size-fits-all solution. If you want to effectively manage or refine your insurance referral program, these 10 insurance referral program examples will spark some ideas. 1. Ethos Life. Ethos Life makes life insurance easy. No medical exams or blood tests are needed. Just answer a few health questions ...

  22. A comprehensive guide to small business insurance

    Starting your own business requires a significant investment of both time and money. Millions of people continue to step up to the challenge with 33 million small businesses active in the U.S. as ...

  23. Referral Fees: A Multi-State Overview

    The same is true in Texas, where sections 4005.053(c) and 4001.051(d) of that state's Insurance Code authorize the payment of referral fees to unlicensed individuals pursuant to the identical ...

  24. Referral program

    PolicyBee's customer referral program. Tell someone about us and we'll give both of you £20 as a thank you. ... Tell someone looking for business insurance about us. Sign into your account, get the unique referral link you'll find there, and ask them to use it. Or, if you don't have an account, tell them to mention your name when they ...