Growth June 2, 2020

B2C Referral Program in Insurance Space

Rick Lindquist @ricklindquist

Hey everyone,

I'm looking for some advice on and examples of B2C (business-to-consumer) referral programs in consumer services industries with historically low NPS (net promoter scores). Think airlines, utility providers, insurance companies.

Has any one had personal success or seen others have success with a referral program in this space? I'm open to any suggestions.

In the U.S., more and more workers are buying their own individual health insurance instead of getting it from their employer.

Macro trends are accelerating this shift (e.g. public policy like Obamacare, rising health insurance costs, health care consumerism, remote work, COVID-19).

Because there is massive "information asymmetry" with health insurance / care, there is a demand (and need) for a "neutral" third party to help consumers pick the right health insurance company / policy.

Historically, most of these third parties (called agents / brokers) have been sales-focused. They focused on "pitching" leads, "quoting" policies, and "closing" customers, more focused on their own commission than what's best for the client.

Today, there is an opportunity for a new serviced-focused "agent / broker" to come in and improve the consumer experience. This why I started LegUp Health and what it plans to do. See for the value proposition.

Word of mouth / client referrals will be critical for LegUp Health's distribution because we will not resort the ABCs (always be closing) tactics of the successful incumbents.

  1. 2

    I used to experiment, an app that encourages the word-of-mouth.

    The performance was quite correct.
    Focus on the value you deliver to people who talk about your product is very important

    1. 1

      Thanks - I’ll check it out.

  2. 1

    Quick update:

    I've schedule customer development interviews with each of my existing clients this week. The goal of these conversations is to learn about the "referability" of LegUp Health.

    I just had my first call and it's clear that this particular client knows many others in a similar situation to her.

    But I learned something interesting. Because insurance (like orthodontia) is a high risk / high cost product, a bad referral can destroy trust in an existing relationship. This isn't ride-sharing or grocery delivery. It's health care. A bad "recommendation" is not worth the relationship risk.

    Many more interviews to go... but this was a big learning: A $25 give and get incentive is probably not going to move the needle (though it may help keep LegUp Health top of mind as something to refer).