In a previous post I stated the case for why an agency that wants to grow must have a comprehensive marketing system. I ended with this paragraph:
Technology is available to help you manage your marketing system. The first step is to understand the need for marketing. Then, create a marketing strategy for the agency, implement that strategy, and monitor its effectiveness. If you do all of these things, you can’t help but become more successful.
As a result of recent conversations I’ve had with various people within the insurance industry, I want to emphasize that creating an effective and engaging Web site is only 25% of what’s necessary to be successful in growing your agency. The questions I’m receiving now from agencies include, “Can you recommend a Web designer?” or, “Can you help me with search engine optimization?” The first question should be, “What marketing strategies can we implement that will help us grow a profitable book of business?”
Technology doesn’t market. A Web site doesn’t sell. These are simply tools that help an agency support a well thought out and developed marketing strategy. Strategy should always come before technology. Only after the strategy is created should you look for the technology tools that will help support and implement the strategy. When this process is reversed, the likelihood of failure is much higher.
Your Web site could have the best design and most compelling content and engaging video, but if you don’t have a strategy in place for what to do with the prospects who visit your site, you will fail to convert them to clients. What is the strategy that will bring prospects to the point when they finally make a buying decision? All the technology in the world is useless if it doesn’t result in a sale.
Opportunity awaits
I fully support industry initiatives like the new Personal Lines Growth Alliance. There is tremendous opportunity for an agency to build a high margin and profitable book of personal lines and small commercial business. And technology is playing a significant role in making this possible.
A successful personal lines and small commercial strategy needs to include at least four elements:
- Keep: Keeping the business that you already have is the core of a profitable book.
- Upgrade: Adding additional coverage to existing policies is the most profitable revenue you can generate. It also goes a long way to enhance your E&O protection.
- Round Out: Adding new lines of coverage or policies cements your relationship with clients and helps you retain them longer.
- Get More: New business generation is an important part of the overall process.
Notice that generating new businesses (#4) is only one-quarter of the overall strategy of building a profitable book. The other three items will generate more profit than just relying on obtaining new business.
Remember, make sure you have a strategy first. Then—and only then—look for the tools to implement your strategy.
There’s no doubt the marketplace for insurance has moved online and failure to pay attention NOW is the easiest way to failure. That said, the core tenets of selling insurance that you laid out apply more than ever.
With a proper personal and small business strategy laid out, technology can make agency processes more efficient, far-reaching and trackable, but it won’t allow an agency to run on autopilot.