Five Ways to Save Money on Your Marketing, and Where NOT to Save
by Laurie Donohue, Executive Director, I-Marketing Management

Many small business owners, including independent insurance agents, regard marketing expenses as a necessary (or sometimes unnecessary) evil. This attitude is a big mistake. Small business owners must view marketing as an investment of time, money and energy. Customers don’t just wonder into your office anymore. You need to attract them and keep them with a strong message, excellent customer service and relationship building.

That doesn’t mean you should spend your entire fortune on marketing! Research shows independent agents do well when they spend 2-3% of their annual revenues on marketing.

It’s not so much the amount of money you spend, but the way you spend it. Here are five tips on how to make your marketing dollars work for you.
1. Have a plan. According to IIABA research, more than 50% of independent agents don’t have a marketing plan. As a result, you end up spending more money on advertising that doesn’t work for you, has no consistent, compelling message, has no consistent look and reaches the wrong audience. No wonder your marketing isn’t working for you! When you have a plan, make sure your messaging is consistent and you stick with it over the long haul, you’ll spend less money and see much greater results.
2. Stick with your ads. If you advertise in the local newspaper, the local theater programs, the diner placemats, or elsewhere, stick to your message and don’t change the look too often. Use the same graphics and message on all your ads so people will easily recognize you. Remember, you’ll get tired of your ad a lot faster than your audience does and redesigning and replacing ads can be costly and time-consuming.
3. Ask for Co-op Dollars. Many carriers offer co-op money if agents advertise their products. Even carriers who don’t offer a formal co-op program may well subsidize a well-thought-out ad program if you present it to them in an organized, comprehensive manner. Carriers are becoming more hesitant to spend money on willy-nilly newspaper or radio ad campaigns without any planning or expected results. If you present them with a program that discusses details, actions, budget and includes techniques to measure response, you’re well on your way to getting the funding you need.
4. Do your own research. Independent insurance agents are lucky to have a vast database of their own customers. You can use your own customer list to get valuable information from them for free. Send them a survey and ask them questions – about their buying habits, their hobbies, their expectations, and your agency’s successes and failures. Then, you can use this information to tailor your messages to respond to their needs and wants. Information like this would cost your thousands if you went to a market research firm, so utilize your own resources!
5. Test, test, test. Direct marketing is a great way to reach current and potential customers. But, some methods may work for you and others may not. Don’t spend a bundle on a mailing of 50,000 before you test the offer, the timing and the list. Test 5,000 first, make adjustments and test again. Test several different programs at once. When you find the one that works best for you, then go for the bigger mailing, but don’t stop testing! Keep trying new ideas and offers.

Where NOT to Save Money
Marketing Strategy. As mentioned above, you need a good plan and a way to implement it to really see results. If you don’t have a marketing plan, hire a professional to help you develop one. Then work the plan. It’s no good if it just sits on the shelf.

Graphic Design. Desktop Publishing is great, right? You can do your own flyers, brochures, ads, right? NOT! Desktop Publishing only makes bad design faster and easier. You’ll save money, but you’ll look amateurish and untrustworthy. You need a professional to develop marketing materials that reflect your business’s unique brand. Take the money you save on the items above and invest it in hiring a qualified graphic designer.
Web Site Design and Search Engine Optimization. If you’re not on the Web these days, you’re missing a huge marketing opportunity. However, Web site design has become a specialized skill. Customer expectations are very high when it comes to Web site functionality, design and ease of use. You need a professional to help you create something that is appealing while still provides the usability, information and interactive functions consumers demand. In addition, search engine optimization has come to be known as a “black art.” It changes almost daily, and if customers can’t find your site, you’re in big trouble. Make sure to consult a professional when it comes to designing and updating your site for search engines.

For more information about saving money on your marketing, contact Laurie Donohue at I-Marketing Management. laurie@aartrijk.com. Or, call toll-free 888-876-4869.