The name game

Fair or not, insurance salespeople have a perception problem. So, even if an advisor asks satisfied clients for a referral, they might balk if the impression their friends and family have about the profession is based on stereotypes of pushy agents peddling coverages they don’t need. Perhaps an advisor should not overtly ask clients for names and contact information. That’s not to say you stop asking clients to introduce you to more prospects. Rather, show them why their relative or friend would want to meet you, said Marcus Ta-hung Kuan, a nine-year MDRT member from Taipei, Taiwan Area.

“If clients already know what kind of consultant we are, and how we are different from others, they would be more willing to refer to us,” Kuan said. 

Put it another way

Being a “nice advisor” is not enough to dispel clients’ fear that if they recommend an insurance agent to their friends and family, they will be rejected. They worry that they’ll create stress and get blamed for bringing this person to them in the first place.

“If we just ask, ‘Are there any friends you could refer me to?’ clients can avoid us by answering, ‘Let me think about it and tell you later’ or simply reject your request. Instead, when I ask for a referral, I say, “So after our discussion, what do you think is different from your first impression of me?” I ask them to tell me two or three clear differences and to share those with their friends or family. Consequently, the referral target will know a little about me, which makes them more approachable before the first meeting,” Kuan said.

Getting to the point where clients could articulate those differences was preceded by Kuan working with them on reducing their risks and providing the services they need instead of pushing products on them.

“I knew that my job was not to sell insurance but to help clients buy the right product,” he said. “I wouldn’t start with: I have something really nice; would you love to have a look? We always talked about their needs first. I will tell my prospects: ‘Don’t worry. We are just meeting for the first time. I won’t sell you anything and even if you wish to buy, I have nothing to offer.’ In this way, they will feel comfortable. I found that by discussing with clients what their needs are and offering suggestions and designing policies based on those needs, we truly can help them diversify their risks.” 

Whether an advisor is a novice or a veteran, another key for winning referrals is having a mindset to grow the client base. “We always need to maintain the motivation to request that clients introduce us to more people who can become clients,” said Kuan. 

How you ask for referrals can vary depending on what stage of their career an advisor is in. For example, new advisors with a small network might initially need to focus their targets for referral requests to friends and relatives they recently chatted with about finances and related topics. As those contacts become more aware of the advisor’s developing expertise, they might become more comfortable referring prospects. 

Clear communication is key 

“A common mistake advisors commit is they overuse terminology to show off their expertise. They might feel professional doing so, but it turns out that clients don’t understand them,” Kuan said.

There are four steps he follows as he breaks down the complex to the simple: 

Be empathetic — Design proposals from the client’s perspective. Recognize that they will be unfamiliar with insurance terms and products, so use charts, pictures and other visual aids to help clients understand.

Practice — Rehearse your presentation with colleagues before meeting clients, and listen to their critique.

Adjust — Be aware that when you practice with your colleagues, their feedback is not coming from the perspective of an uninformed client. So, during your client meetings, carefully observe their reactions and body language. Are you asking questions that they understand? Are they responding the way you expected? Keep adjusting your questions and explanations, so subsequent meetings can proceed more smoothly.

Confirm — Ask your clients to briefly explain what they’re taking away from the meeting so far. If they missed the key points you wanted them to understand, present that message on the spot. 

“We need to practice telling clients things they may not understand, in a way that they do,” Kuan said. “When clients understand what we say, we are demonstrating our professionalism.”

Bruce Peng and Sean Yu write for Team Lewis, a communications agency assisting MDRT with content development for Asia-Pacific markets. Contact mdrteditorial@teamlewis.com.