Referral Programs and C s Guide - The Travelers Companies

Referral Programs and Communications Guide

THE OPPORTUNITY Referrals are the number one source of profitable new business for independent agencies. Your existing customers can be a great source of new leads.

Keys to Success:

1. Management committed to the program. 2. Establish a process for referral & acquisition efforts. 3. Consider offering compensation/incentives to CSRs for obtaining

referrals from existing customers.

STEP 1 - Select the Referral Method(s) That Can be Best Implemented at Your Agency

Here are several ways of increasing referrals on a regular basis.

New Customers: o Ask for a referral at the time of each sale, or o Follow up with them at a later date by sending them the following communications:

Postcard (PL-13486)

New Business Follow-Up Letter

Existing Customers: Incorporate a friendly request for a referral into everyday customers interactions such as: o billing questions o claim inquiries o coverage reviews o policy changes

Consider implementing a compensation program for your CSR's who procure new business by requesting referrals. Send your customers any of the following communications:

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Existing Customer Letters Claim Service Vacation

Referral Postcard (PL-13486)

Postcard (PL-10815)

Referral Letter with Address Labels

3rd Party Referrals: Target businesses in your area that sell to your best prospects. For example, car dealerships that sell hybrid vehicles are great places to leave communications promoting Travelers hybrid vehicle discount, and realtors/mortgage brokers are great places to leave communications promoting discounts on homeowners insurance.

Hybrid 10% Discount Tent Card (PL-12813)

Homeowners 10% Discount Tent Card (PL-12422)

Homeowners 15-20% Discount Tent Card (PL-12386)

Referrals Across Business Lines: Ask your Commercial Insurance customers if they can refer any Personal Insurance customers to you.

STEP 2 - Institute the Program

Begin requesting referrals from your customers. Contact businesses in your area that can help you with 3rd party

referrals. Ask them if you could place communications in their place of business, and if they would refer their clients to you. Call any referrals you receive promptly. Inform them how you received their information and ask if you can provide a coverage

review and quote.

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STEP 3 - Thank Your Sources

Be sure to acknowledge/thank the customer that provided you with the referral or the agent/CSR that obtained it. The following letter can be used.

Thank You Letter

STEP 4 - Track and Measure

It's very important to track the source of each referral so you can see where your leads are coming from, thank your referral sources, and adjust your marketing efforts accordingly. You can track and measure the cost-effectiveness of all communications you deploy by using your agency management system, or simply use the attached Referral Source Log Sheet and Marketing Plan ROI Template.

Marketing Plan ROI Template Referral Source Log Sheet

TIPS AND TECHNIQUES

Where permitted by law, include a small gift in your thank you letter to your referral sources. Popular gifts include lottery tickets and $5 gift cards to Starbucks, the local mall, and other establishments.

In any communications you have with a customer, ask for a referral! Some ways of incorporating a request into written communications include adding a text box or a PS to a letter.

Many agencies utilize compensation programs for their staff that obtain productive referrals.

Be sure to include the following in your tracking and measuring process: communications that led to referrals, the number of referrals received, the number of sales that resulted, and the value of any policies sold and commissions received as a result of the referral.

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 As it often takes agency staff time to become accustomed to new procedures, you may want to track the results of you referral programs on a quarterly basis initially, and more frequently thereafter.

AHQREFERRAL

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