Spreading Word About Your Insurance Business

Long gone are the days when town criers spread the word about news and happenings in the community from a rooftop or balcony. These days, people’s communications are incredibly varied, across traditional and new media, from the U.S. Postal Service to Facebook and beyond.

Today’s youngest generations seem to respond best to information online, while a good majority of the baby boomers beyond prefer the more traditional means of communication. That’s why it is important that your communication strategy be varied.

There is no magic bullet when it comes to capturing an audience and turning prospects into customers, but here are some communication tips that should help:

  1. Direct Mail Marketing. Direct mail can be a powerful communication tool, as it almost guarantees you will be able to reach your prospect directly; but be careful not to spend too much money on it. According to The Direct Marketing Association (DMA)’s 2012 Response Rate Report, the average response rate to direct mail is just 1.28 percent; and it can be expensive, costing $51.40 per lead; but of course if it results in just one long-term customer it will have been worth it.

  2. Phone Calls. According to the Report, a much more effective way to turn a prospect into a customer is with a phone call. The report shows an 8.21 percent response rate from phone call pitches. The key to success with these is being personable and respectful of the prospect’s time.

    Learn some cold calling tactics to increase your sales.

  3. Social Media. Social media grabs a lot of marketing headlines these days, but in order to do it right, you need to have an active presence in more than just one place. Those who are most effective in the social media arena are active in all of the places their prospects are spending time.

    They are sharing details about what they are doing on Facebook with friends and prospects via their business page.  They are using Twitter and Pinterest to call people’s attention to great content they are finding and posting online; and they are LinkedIn to both industry contacts and business prospects.

    While Facebook, Twitter and Pinterest are vehicles used to post content and carry on conversations, LinkedIn is the tool the majority of business owners are using to generate leads. But getting it to work for you will take an investment in time.

    Once you make your initial connections, you should expand your network. Do this by checking out all the contacts your friends have and inviting those you think may be interested in you and your business to connect with you too. You never know when someone in the network may become a referral.

    Check out how we do it and stay connected: Facebook | Twitter | LinkedIn

  4. A Strong Website. Before you become active in social media, be sure you have a professional website that positions you as a respected expert in the insurance industry. Once people get to know you, it is likely the first place they’ll go when they are in need of an insurance quote is your website.

  5. Word of Mouth. We may have moved beyond the times of shouting from the rooftops, but don’t forget, good old fashioned word of mouth is still a valuable way to spread the word about a good thing. So, if your customers take the time to either call or write-in with great feedback, don’t forget to ask them to tell their friends what a great experience they had. And of course, never overlook local marketing. It can really pay off when you're hob nobbing with community leaders.

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    Tom Koziol May 11, 2013

    The post contained great tips. I'd like to address #5 - Word of Mouth. Our agency prefers to call it referrals. We are not shy about asking a satisfied customer to take three or four cards and give them to their friends today. We only encourage three or four because these seem to be the magic numbers that don't put people off or make them feel uncomfortable.

    We opened the store 5 years ago with cold calling - your #2 Phone Calls - and it worked better than radio, TV and the newspaper. Once the prospect became a client we then switched into referral mode.

    I can tell you asking for referrals has worked for us and would suspect it would work for all agents if they only asked.