If you have all the clients you want, if you have no desire to grow your business, if you're sure you'll never lose a client to another broker, if every one of your existing clients will remain in business and never downsize, and if you know all of your clients will continue to offer your existing benefits packages until you retire, then there's no need for you to read this.
But for everyone else like Ken Doyle, director of marketing for Warner Pacific Insurance Services (Westlake Village, Calif.) and immediate past president of the Los Angeles Association of Health Underwriters , the "referral to relationship" process starts by getting your foot in the door the right way with new business.
It's a two-step process. First, get the prospect to like you. Then, get them to trust you.
Get them to like you.
"For any relationship to be long-term, the client first has to like you, and then they have to trust you, in that order," he states. "This will at least 'start the dance' for a long-term relationship." According to Doyle, liking is partly a function of personality, but there's more to it. "I think of 'liking' as first impression," he states. "Part of it relates to your personality. Part of it relates to how you dress and how you look."
However, Doyle believes part of it also relates to what comes out of your mouth. If you can come off in the first few minutes letting the prospect know that you truly care about them and can answer the "What's in it for me?" question, this is a critical part of getting them to like you. "This makes it clear to the client that you are selling true benefits to them, not just features," he explains. You need to answer questions for them such as: Will what this guy is offering make an impact on our business? On our revenue? On our bottom line?
Continue to deliver.
While liking can come very quickly, trust doesn't. It has to be built over time. One aspect, according to Doyle, involves exceeding client expectations. "Telling a customer you offer customer service 24/7, 365 days a year, really doesn't mean that much," he points out. "It's when you go over and above their expectations that you start to build trust."
For example, if you tell a client that you will get some quotes to them by Wednesday, try to get back to them by Tuesday. Then, build trust by continuing to deliver on your word. Example: If you promise to return a client's call tomorrow, don't call two or three days later. Call tomorrow.
Another aspect to building trust, Doyle has found, is to stay in touch on a regular basis. "I am always coaching agents on the importance of implementing some type of 'drip' marketing campaign with new clients," he states. "I want them to take a look at all of the touch-point opportunities they have with clients."
For example, if you get a client onboard today, call them in four to five days to make sure you have met their expectations. In 30 days, send an e-mail or pick up the phone again, to see how it's been going for the last 30 days. Then maybe make contact in another 60 and 90 days, then a couple of more times during the year. "If the only thing you do is get back in touch with a client during the next renewal, you are opening the door for another agent to step in and take away your client," he cautions.
Another key strategy is to swing by some time during the year in person just to have coffee. "Take it beyond just strictly business," he explains. "People like to be known. They don't want to feel like a number. They appreciate you reaching out and trying to get to know them."
Develop loyalty.
If you are successful with these strategies, according to Doyle, your clients should always be happy to refer you to other clients. According to Robyn Piper, a principal with Piper Jordan in San Diego, Calif., the best way to get referrals from clients is to make sure they're as happy as possible. And the best plan for them means the most happiness.
But that doesn't mean stick to the best "generic" plan you know about. The best will fit the unique needs of each client. This will take three steps. First, get to know the prospect, and even this has two elements: ask, then listen.
"I go well beyond standard questions to things that are unique to the prospect," Piper says. She'll probe about what they do internally ? the type and size of the organization, how many locations they have, what the demographics of the group are, the size of the benefits department, etc.
Listen carefully to responses. "When people realize you are listening to them, rather than pushing a particular agenda, this will make a huge difference," she explains.
Step two, know the market intimately, and in as much detail as possible. Of course, you need to know this before you approach a prospect, but it's a never-ending process, according to Piper. "For example, if a vendor wants to meet with me, I am happy to do so," she states. "I don't care what their reputation has been in the past. I want to know what everyone is doing on a constant basis. I want to truly understand what they are representing, what their service level is."
Once you know the needs of the client and once you know what is available to fill those needs, the third step is to select the best plan from the most appropriate carrier. This has two components, according to Piper. One is selecting the best product. The other is selecting the most appropriate carrier.
There are some nuances here. The "best product" means the specific plan that will best meet the needs of the client. The "most appropriate carrier" is the one that will provide the best service levels. Ideally, if you identify the best plan, you hope it will be with the carrier that also provides the best level of service. However, this isn't always the case. For Piper, though, the plan is a bit more important than the service levels. This in no way means that she would ever recommend a plan to a client from a provider that offers shoddy or substandard service. Rather, it means she is comfortable recommending the best plan for a client from a carrier that offers at least reasonable levels of service.
She elaborates: "I don't have vendor favorites in terms of their products." That is, certain plans are more appropriate for certain clients. "However, I may have vendor favorites in terms of the relationships I have with their people. These are people I know who are going to follow through and do whatever is necessary to meet the needs of the client. However, the products they offer come first."
These strategies build client loyalty ? the kind of loyalty that will encourage them to make referrals in the future. But there is another step that can stock the odds of getting referrals in your favor even more. Don't think of the client as a single person. Realize that there are many people in the client organization, and the more of them you know, the more chances there are to get referrals.
"It is critical to know as many people as possible," emphasizes Piper. "Everyone brings a different perspective to the table. If you only have a relationship with one person, then you are only aware of one set of concerns. The more people you know, the more you can balance their needs."
Understand it's never-ending.
As far as Tony Dale is concerned, the referral to relationship process is, or should be, a never-ending one. That is, if you build good relationships with existing clients, they will provide you with referrals. Then, as you build relationships with the referrals and turn them into clients, they will give you referrals. "The most important thing to remember is that you aren't going to get referrals unless you have decent relationships to start with," states Dale, chairman and founder of The Karis Group (Austin, Tex.)
Dale works very hard to not just establish a relationship with an existing client, but to really deepen that relationship, both at a friendship level and a professional level. In practice, he admits, it may be difficult to build both types of relationships. It might be easier to build a professional relationship than friendship, but this doesn't stop him from trying to do both. The reason: "Most people like to do business with their friends," he states. "So, if you can take the time to encourage the development of a friendship, it may eventually occur."
Certainly, though, you don't want to "trade" on a friendship. You have to back it up with professionalism ? providing clients with competent business services and meeting their needs. "However, if you are every bit as competent as anyone else out there, and you have developed a friendship, then I think, inevitably, more business and more referrals are going to come your way," he suggests. "It is important for clients to enjoy doing business with you. Then, they will look forward to finding ways to put more business your way."
Just as it's important to know as many people in a client organization, your clients need to know who's in yours, so that, if you are unavailable for certain periods of time your company doesn't lose the business. "We make it a point to make sure that two or more people are actively involved in every on-going client relationship," states Dale. "I do not rely exclusively on my relationship."
When it comes to asking for referrals from satisfied clients, Dale is sensitive to the kind of relationship that client has with someone else. If it's a close relationship, then Dale will make it a point to let this person know what he has done for the current client. However, if the client knows of a potential referral, but doesn't know them well enough that they feel comfortable having Dale reference them, then he will simply call the referral and not mention the name of the client who provided him with the referral.
Become a friend.
His approach works well. "Very little of our business over the years has come from cold-calling," he reports. About 85 percent of Warren Benoit's business is the result of referrals from strong relationships Dale has built with clients.
"I do a lot of business with governments and municipalities, so I rely heavily in the relationships I have with these officials," explains Benoit, president of Warren Benoit & Associates (Kenner, La.) "These people can also open doors for me with government officials in other parts of the country."
To build relationships, Benoit works hard to become more of a friend and partner with them, rather than their insurance agent. "I do anything I can do to help them in the insurance industry," he explains. "However, if they need to talk to someone else outside this industry, I may be able to tap someone I know for them."
Building a friendship is a long-term process, according to Benoit. He admits that a lot of it is based on personality, which can "click" with someone right away or not. "Sometimes one person might rub another person the wrong way," he admits. "I am not always going to have a good relationship with everyone I meet, but I do try to build a friendship. Part of this is being a good listener."
Even if the friendship doesn't always lead to business right away, the relationships are always important over the long term, he has found. "Things change," he explains. "This is especially true in government, where things can change every four years. As such, you need to stay in touch with a lot of people on a regular basis."
Regardless of how long it takes to build a friendship and a satisfied client, though, Benoit believes that seeking referrals should be a constant process. "I don't have a problem asking for a referral right away," he concludes.
