Referral-to-client Ratio

[beachbum2012]

Do you guys keep track of how many referrals you get per original lead? I'm not counting spouses as referrals. I just wonder what's a good ratio for those that have a consistent process of generating referrals.

Also, how do you typically thank them? Phone call, Send Out Card, small gift? I know the gift is a grey area even for medsupp since many of us help with the PDP too. I think giving a gift for each referral after the fact, whether or not the referral results in a sale, is OK but I'm not positive.

 

[kstein]

You can give a gift up to $15 per person as long as it isn't based off enrollment.

It's hard to track, in my opinion , as some people won't tell you who referred out they forgot etc.

I send a coffee cup with my logo via Fed ex which comes in under $15 including shipping.

I like the idea of having your A list referrers on a higher touch list. You'll find that some people have more influence over their peers than others. Keep those people on your radar.

In this business, referrals are the secret so don't be afraid to allocate some marketing dollars towards it.

 

[beachbum2012]

Yeah, I saw your post when I did a search on the site. You still use Vistaprint for the mugs? How many referrals would you say you get per client, on average? I'm looking for roughly the percentage of a book of business that came about from referrals. Mine is about 20%, or a 1:4 ratio.

 

[kgmom219]

Yeah, I saw your post when I did a search on the site. You still use Vistaprint for the mugs? How many referrals would you say you get per client, on average? I'm looking for roughly the percentage of a book of business that came about from referrals. Mine is about 20%, or a 1:4 ratio.

I don't keep track. I'm 100% referral based, but I do Small Group, U65 and O65, so my O65 group is going to be smaller than others.

I get client referrals and Financial Planner referrals.

Client referrals get a hand written note. Financial Planners get an email.

Theres probably data on this, but I would guess that the percentage of new clients obtained via referral will go up every year, until you are at 100% referral.

 

[kstein]

Ah, I'd say I'm closer to 70/30 with the majority being referral. As I've grown it's moved more to referral but I still do a t65 mailer and try to meet as many people as I can. My main referral source is a wealth management firm that has 30 advisors. I've got about 20 of em on board so far. Which came from an insureme internet lead.

 

[aheff]

I don't keep track. I'm 100% referral based, but I do Small Group, U65 and O65, so my O65 group is going to be smaller than others.

I get client referrals and Financial Planner referrals.

Client referrals get a hand written note. Financial Planners get an email.

Theres probably data on this, but I would guess that the percentage of new clients obtained via referral will go up every year, until you are at 100% referral.

kgmom- Referrals are a very big part of my business, but I never think I will ever get to 100% referral-based. I will always have- or be able to create- more time capacity to incorporate other marketing vehicles that while not as strong as referrals, still worthwhile and still results in sales.