Marketing your agency doesn't have to be a daunting task if you attack with a simple, but powerful two-pronged method--internal and external marketing, each having its own objective, and therefore its own approach. Together, they are the framework for defining strategies that increase sales, enabling you to land new accounts and retain your current customer relationships.
Market internally
Internal marketing is nothing more than targeting current clients to expand the coverage provided to them. For all its simplicity, it offers terrific advantages, particularly for agents with an established client base.
Internal marketing helps agents retain clients by strengthening their relationships with them. After all, existing clients are great pipelines for new business; and if they like what you offer and are pleased with your professionalism, they'll tell their friends and neighbors. If you adopt a couple of consistent strategies for internal marketing, you'll experience a parallel in consistent growth. The following tactics may be very useful:
* Conduct annual reviews
Annual reviews provide an open forum with clients. These scheduled conferences provide opportunities to talk about gaps in insurance coverage and make recommendations to fix those gaps--which is crucial to the success of any agency. Annual reviews should be the leading strategy in your internal marketing arsenal.
* Market additional lines of insurance to existing clients
The beauty of an existing client base is how expandable it is. The tragedy is how often agents overlook it. Two approaches generally prove to be successful in carrying out this strategy. The first approach is to simply aim for an appointment with an existing client to discuss an additional line of insurance. The second approach is to provide a client with information on a line of insurance that the person doesn't already carry. Neither approach happens automatically. The goal is to go to the client with initiative, organization, consistency and an effective pitch.
* Create specific projects
One of the best internal marketing tools is sitting outside your office door. It's your staff. Energetic brainstorming with the team can bring new ideas to the table prompting you to target home owners with high liability limits for umbrella policies or maybe leading to new ideas on how to add towing coverage to auto policies that don't have it. The potential is high because even the germ of a new idea can evolve into something way beyond where it starts.
Once you've fleshed out the particulars of an idea and introduced an actual plan for turning it into a marketing strategy, create an in-house list of clients to call. Have one or two specific projects that you and your staff are working on at all times.
Market externally
External marketing is the flip side of internal marketing. It reaches outside your existing client base to attract new business. Do it well and you'll drive precisely the kinds of clients you want to your door.
External marketing doesn't have to be scary, complicated or expensive. If you approach it the same way you approach internal marketing, you'll never have to stray far from your comfort zone, because both rely on the same fundamentals--initiative, organization, consistency and an effective pitch. What sets the two efforts apart is strategy. Here are some external marketing strategies that work:
* X-dating
Expiration dates on policies are lightning rods for new business. Getting expiration dates is readily accomplished by purchasing or creating pre-qualified lists of potential clients. A number of sources are available for new agents starting out; buying lists might be the most reasonable and expedient alternative. Once the lists are generated you can call and gather information regarding renewal dates for various lines of insurance.
* Create "hot" lists
Keep a current list of about 100 current and potential clients you want for a particular line of insurance. Often these people are "centers of influence." But no matter where or how you find candidates, keep their names and numbers on a "hot list." It makes for an easy and comfortable relationship when the time comes to talk about insurance. After selling to one of them, check off the person's name and replace it with a new one.
* Launch a referral program
You'll be happy to know that some of the best strategies for external marketing also are the most elementary. Case in point: a referral award program. When an existing client sends someone new your way, you need to say thanks.
To develop an effective referral reward program, brainstorm ideas with your staff. Aim to create the kinds of rewards that you would appreciate and then make sure to apply the program consistently.
* Work with mortgage companies and real estate agents
Another great way to generate referrals is to develop relationships with experts in other industries to target new homeowners policy sales. For example, get referrals from the people whom home buyers deal with face to face: real estate agents and representatives of mortgage companies. These are the first people to discuss insurance with new home owners, and consumers want the advice of an insurance agent they can trust. You want that person to be you. Realtors and mortgage companies have a vested interest in knowing who is moving to town and who is moving out. Staying in touch with these contacts on a consistent basis can move you toward a cooperative relationship that leads to referrals for you.
* Participate in welcoming newcomers
An extremely worthwhile marketing strategy is to provide the "welcome" people in your community with something from your agency to include in the packet of material they pass out to newcomers to the area. Typically, participation means that you provide an incentive for new home owners to swing by your agency. The incentive is often a gift, such as a home safety kit which will reinforce your agency to new residents. After all, they are making a lot of decisions, and one of those decisions may very well involve insurance.
* Build relationships with centers of influence
"Centers of influence" are people in the community and even in your agency who are interested in seeing you succeed. It may be that they want you to succeed because your business adds a professional touch to the neighborhood or perhaps they're interested in your success because of your involvement in their community programs. For numerous reasons, centers of influence are people who have come to respect and admire you, and they're willing to reach for referrals on your behalf.
It's important to stay in touch with your centers of influence on a daily basis. Let them know that they are part of your team.
Keep in mind that it's not one big thing that makes marketing successful. It's a combination of all the little things that brings new clients to your door and keeps existing clients from going elsewhere. *
The author
Twice-named "Agent of the Year" from among 14,000 Farmers Insurance agents and a frequently featured motivational speaker at industry events, Troy Korsgaden has trained nearly 30,000 insurance agents and staff across the country using his industry-specific manual and seminar program, "Achieving Success in Agency Management." His recently released book, "Power Position Your Agency: A Guide to Insurance Agency Success," explores in-depth, strategies for growing and retaining insurance agency business. For more information, call TKS, at (800) 524-6390 or fax the company at (559) 625-1603.
©COPYRIGHT: The Rough Notes Magazine, 1999