Marketing in a Weak Economy

As we hear bad economic news every day, agency owners begin to look for places to trim their own budgets and weather the economic storm. Many agencies and small businesses of every type often target their marketing budgets. The reasoning is, why advertise when people aren’t buying?

Although this rationale seems to hold credence, it couldn’t be more wrong, especially for insurance agents. Here’s why:

People need insurance in good times and in bad. In bad times, it’s even more important to have the right insurance, so if disaster strikes, people have the money to rebuild regardless of their current financial situation.

In a weak economy there are lots of opportunities. People look more carefully at the value they get for their money. Is it better to buy the cheapest that won’t really meet their needs? Or, is it better to buy the best value so they won’t be left holding the bag.

With others reducing or canceling all their marketing efforts, your marketing stands out more.

There are many ways to market your agency while still saving money. Most agents, when they think of marketing, think of the local newspaper ad, the yellow pages ad and the local radio spot – all these venues can be expensive. But there are lots more ways – and smarter, more cost effective ways – to get your message out.

The key is to have a plan – how are you going to spend your money, what will your message be, what do you expect for results and how are you going to track it? Without a plan you’ll end up spending money on ineffective efforts with no measurable return.

Here are some ideas to consider when developing your plan:

Reinforce Your Brand
Before you do any advertising, look at your “brand.” Your brand is your promise to your customers and the world. What do people think of when they hear your name? Do you deliver on your promises? Would they recommend you to others? If the answer to these questions is positive, then you have a strong brand.

Having a strong brand is crucial. It provides your agency with staying power.

If you’re not sure if your agency has a strong brand image, you can contact I-Marketing Management for a free follow-up article on “How To Test Your Agency’s Brand.” To request this article, please email laurie@Aartrijk.com.

Customer Communication Programs
In a weak economy look to your customers first to increase sales and profitability. If they are happy with you, they are probably willing to consider additional products and services you offer. By instituting a cross-sell program, you can inform your customers of additional protection they may not have known about. Cross-sell programs are inexpensive, especially if you have collected customer emails. Monthly emails to current customers about risk management and proper coverage can generate the additional income you may be losing elsewhere.

If your current customers love you, they will be happy to spread the word. Do you actively ask for referrals? When your customers refer you, the quality of the prospect is much higher than those you get through the yellow pages. Why not develop a program to actively request referrals from your customers? The best time to ask is when you’ve done them a service. Have you settled a claim where the customer was pleased? Did you save your customer money on their policy? Did you do them a favor? That’s the time to ask for a referral.

Target Marketing
If you’re looking to attract new customers, target specific markets such as restaurants, wholesalers, nonprofits, etc. and spend your marketing dollars communicating only with them through direct mail, trade associations or other networking opportunities.

Public Relations
If you need to reach a very general audience, look at developing a public relations campaign. What can you do to get your agency’s name in the paper without spending money on advertising? Get articles published about new hires, certifications, promotions or any other changes in your agency. Sponsor civic or charitable events in town. Hold a customer appreciation day. Most of all, give back to your community. If you sponsor a local scholarship, you’ll get lots of publicity. If you hold a fundraising event for the community kitchen, you’ll get lots of publicity. Your good works will turn into good business.

Internet
Look to the Internet. It’s important that you have a good, useful Web site that is easy to find and has lots of good information. It’s worth the money to get a good site developed that includes options to do business with you online, provides information on coverages, offers tips on safety and risk management, and is updated regularly. Consider posting newsletters, and doing a blog. Work with a search engine optimization firm to get your site on the first page of major search engines such as Google and Yahoo!. Having a good presence on the Web is much more important than a big ad in the yellow pages, so take the money you were spending on that and put it into your Web site.

Marketing in a weak economy can be a great opportunity for the agent that develops a comprehensive plan. Continuing to market in hard times allows you to stand out while others disappear. The public’s memory is short, and when good times come around again, they won’t remember the firms who stopped advertising.

Remember to:

• Reinforce your good brand image in all your marketing efforts – and keep the messaging consistent.
• Focus on your customers first, as they are more willing to buy from you and can refer new business to you.
• Laser your new customer acquisition marketing to hit only those you want.
• Be creative with your public relations efforts to get lots of good publicity.
• Concentrate on using the Internet to get your name out.

To contact I-Marketing Management, call 888-876-4869.