The insurance industry is fiercely competitive, with local agencies focused on in their marketing efforts to secure a portion of the market. However, many insurance business owners fall into the pitfall of trying to lure potential customers by offering the lowest prices. While low prices might be sensible for large companies that sell in high volumes, for a small business, it is a poor strategy. Although this type of insurance agency marketing might attract numerous leads—after all, who doesn’t appreciate a good deal?—these leads will not be of high quality, they will lack loyalty, and they will perpetually seek a cheaper option.
So how does a smart insurance agency owner go about marketing insurance products for quality lead generation?
An independent agent must strive to be relevant, add value, and be a trusted advisor. One of the principal ways we can add value in any relationship is by elevating our game and being more engaging. Every interaction with a client must be professional and your actions as well as results should be client centric.
Make a name for yourself as a helpful contact in the local community.
Getting your contact information into the local business listings and leaving your business cards in relevant businesses will go a long way into establishing you as a “household name”, beating email marketing and facebook ads from competitors who are totally unfamiliar to your locals.
The straightforward answer is yes! However, is that truly in the best interest of the clients? I suggest we reconsider the message we convey to prospects and clients when we treat our products as mere commodities.
Is it preferable to be the cheapest, or is being reasonably priced sufficient? Offering the lowest-priced insurance product provides only a single chance to attract or keep a client. Moreover, if the unfortunate moment arises when they need their insurance, the minimal cost and inadequate coverage might lead to negative online reviews from dissatisfied clients who feel disappointed.
Absolutely not! Although many insurance products might look alike at first glance, there are numerous subtle differences in terms, coverage, and claims management.
You should focus on how they present quotes and consider the quote-to-bind ratio. If your quoting strategy is solely price-driven, your quote-to-bind ratio will be low. However, when an agent emphasizes coverage and aligns the product with the client's needs, the quote-to-bind ratio will be higher.
Change the dynamic by adding to your prospect/client questions about their lifestyle or prior experiences related to a claim they had. Sure, you can review their CLUE report or loss runs to glean some aspects about prior losses - but it will give you tons of valuable information to actually ask the following questions:
Beyond asking the right questions of the prospect/client, you need to know specifics about the carriers you represent, their appetite along with coverage forms.
If you simply quote coverage and are not the cheapest, you have invested time and money for a higher probability of losing a multi-year revenue opportunity.
When you market coverage, you gain an edge by elevating your relationship with your prospect/client. You will likely have a better close ratio due to the understanding about what your role is, what their needs are and the overall objective of the relationship.
In addition, you will likely have a higher retention. Both will increase agency profitability and your book value.