ClientCircle blog

It was a 2003 article in the Harvard Business Review entitled "The One Number you Need to Grow" that changed forever how we define client loyalty. Business strategist and author, Fred Reichheld, set the framework for the Net Promoter Score (NPS) which is used by many of the world's most successful companies.

So what's so good about this score, anyway?

Today, we find ourselves ranked 481 on the Inc. 5000 list of the fastest-growing companies in the U.S. We ranked 62 among all software companies in the U.S. and the fastest-growing software company in Iowa. We’re very proud to be among so many other innovative and successful businesses.

A recent study by Advisor Impact examined how and why people refer their insurance agency to others. They found that 98% of personal recommendations occur when a client recognized an opportunity to help their friends and family. When you consider how these referrals are made, it’s easy to see why flat out asking for referrals seldom works.

Written testimonials are an exceptionally valuable form of referrals for insurance agencies.

For more reasons than you might think. Testimonials provide social proof, promote trust and confidence in the agency, boost employee morale, improve organic SEO, and establish an identity that prospects can associate themselves with. As an added benefit—one that is often overlooked—testimonials also significantly increase client retention.

In the absence of personal recommendations, searching for an insurance agent can be as easy as typing a couple of words into a smartphone. Submit a brief query into Google and you’ve got a digital Rolodex of agencies to choose from. But, with so many options, how are prospects supposed to choose one over another? That’s where online reviews come in, providing consumers with feedback to help them whittle down the field.

Anymore, people expect honest feedback when researching products or services. It’s given considerable power to the consumer—even a single review can have a dramatic impact on sales. In particular, online reviews are extremely valuable for insurance agencies. This is due to the large gap between consumer expectations and what most agencies are actually providing in regards to the number and quality of reviews. People expect to see at least a star-rating before they decide to explore further.

But, in reality, the vast majority (80-90%) of insurance agencies have three reviews or less—with many having none at all. The absence of local reviews across the internet provides a huge opportunity for agencies that do have positive reviews to stand out. Inevitably, most prospects online will pick the agency that others have already vetted out. As a result, the agencies with several positive reviews are regularly displayed and chosen above those with negative ratings, or none at all. It makes perfect sense. People want to know what they’re getting themselves into, and they will regularly trust online review sites to give them the answers.