Word of mouth is king. So say brokers responding to questions about their firms’ marketing efforts in Canadian Underwriter’s 2024 National Broker Survey.
Fifty four per cent say customer referral programs have been beneficial or highly beneficial over the past two years. With the exception of a dip to 45% in 2022’s survey, that number has remained over 50% since 2020.
In this year’s survey, fielded in January and February 2024, more than 200 brokers nationwide shared views about challenges and opportunities for the broker distribution channel. The CU survey is sponsored by Sovereign Insurance.
“When you provide good service, customers will refer good customers,” says one veteran male respondent at a large firm.
And that view is shared in survey answers across the age spectrum.
“Customer referrals are the best sales and marketing tool,” says a woman with fewer than 16 years in the business. “There is no better way to get new customers than your existing customers spreading the word to people they know [and telling them] that I provide excellent service.”
Another veteran woman respondent adds, “My growth has been strictly from client referrals – no advertising.” And one respondent out west notes her firm sends gifts to current customers whose referrals bring in new business.
Mass, and social, media
Reliance on referrals far outpaces the 32% of broker respondents saying public relations and media outreach have boosted business, or the 29% saying traditional advertising works best. Numbers for both categories are consistent across the past several survey years.
Verbatim comments note that advertising goes far beyond traditional static ads and includes new media platforms like YouTube and Instagram. Several verbatim responses simply credit a firm’s “social media presence” as a driver for improved brokerage name recognition.
“Extensive marketing and advertising has brought in a lot of new customers,” says a younger male at a brokerage with more than 100 team members. And a woman with 16-plus years in the business adds, “Digital advertising. It’s the only place to be.”
Another younger female broker says, “Google Reviews have been important for bringing people to our website.” And a male peer says, “Search-engine optimization has allowed customers to find our business easier and some of them didn’t even know we existed prior to this.”
Meanwhile, the popularity of using white papers, webinars and blogs to rise a firm’s profile is falling out of favour. Only 27% of brokers responding to 2024’s survey see it as a good idea, compared with 32% in 2020.
Feature image courtesy of iStock.com/Eoneren
