Demystifying Digital Marketing for Insurance Agents

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Slide set from the June 12, 2012 webinar, Demystifying Digital Marketing, a process to help insurance agents the right digital marketing tactics based on objectives, opportunity, aptitude, available time, and budget.

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Demystifying Digital Marketing for Insurance Agents

  1. 1. Demystifying Digital Marketing Five Steps to Managing a Strategy for Agency Growth and Profit
  2. 2. PresentersKevin McDonald, Confluency SolutionsJohn Fear, Premier Business Consulting
  3. 3. What is digital marketing?Any electronic medium used to promote sales,product or service information to clients orpotential client or used to manage sales andbrand data.
  4. 4. Not Everything is Digital But Digital Touches EverythingIt is the way people communicate. Print advertising to web: 67% Direct mail to web: 59%
  5. 5. How to Increase Revenue and Profit Buy Agency Due Diligence, Fit, and Assimilation Leverage Join Aggregator Referrals and New Clients External Marketing Client Account Development Relationships Client Policy Development Relationships Lead and Sales Management Affects Everything
  6. 6. How Do Digital Tactics Affect Each?
  7. 7. Joe Agent2000 clients ✦ 1,000 personal and 1,000 commercial ✦ PL revenue = $200,000 ✦ CL revenue = $800,000 ✦ 1400 policies - personal ✦ $800 average commission - commercial ✦ 92% retention
  8. 8. To Get WhereYou Want to Go You have to know where you are.
  9. 9. What you saidDoes your agency have a formal marketing plan?Yes - 38%No - 62%
  10. 10. The 5 Steps1. Set a top level goal2. Identify gaps3. Develop tactics4. Set segment objectives5. Measure results monthly
  11. 11. The 5 Steps1. Set a top level goal2. Identify gaps3. Develop tactics4. Set segment objectives5. Measure results monthly
  12. 12. Top DownRevenue has been flat the last several years but Joe wants to grow 5%.
  13. 13. Bottom Up TestsTo stay flat, Joe has to replace...• 80 personal lines clients and• 80 commercial
  14. 14. Or Get...• More policies per personal lines account• More premium per commercial account• Improve retention
  15. 15. ...Or Do Some of EachHow will digital marketing help him do that?
  16. 16. The 5 Steps1. Set a top level goal2. Identify gaps3. Develop tactics4. Set segment objectives5. Measure results monthly
  17. 17. Step TwoIdentify the gaps between where you will endup and your top level objective; includeretention rates and changes in commission andpremiums imposed by your insurance carriers.
  18. 18. The 5 Steps1. Set a top level goal2. Identify gaps3. Develop tactics4. Set segment objectives5. Measure results monthly
  19. 19. Lead ManagementGM vs. FB – what’s the return on $242 or $3M for 30 seconds?Tracking Source to Sale – what is the return on your investment? Initial Investment – what is the cost of the lead opportunities? Acquisition costs – reports, staff and operational resources Calculating the “Cost” Number of Leads – what is the Universe you’re trying to reach? Response Rate – how are you optimizing the message? Quote Rate – is the client’s response expectation being met? Close Rate – are the skills of your staff applied to make the sale? Policies Per Account – are you taking advantage of all opportunities?
  20. 20. Calculating the “Cost”Number of Leads – what is the Universe you’re trying to reach?Response Rate – how are you optimizing the message?Quote Rate – is the client’s response expectation being met?Close Rate – are the skills of your staff applied to make the sale?Policies Per Account – are you taking advantage of all opportunities?
  21. 21. What you saidDoes your agency have a customer development program?None -----------38%Annual reviews---38%E-Newsletter ---- 12%Traditional cards --6%Other------------6%
  22. 22. Search Engines - SEO•Organic Results•Local Results•Paid Results (PPC)
  23. 23. Digital Tactics and Growth Sources Policies or New Clients New ClientsTactic What is It? Retention Commission (not Referrals Per Account referrals)PPC Auction where you bid on keywords ✔ Search engineSEO optimization - how to maximize traffic ✔ and conversions Local businessLocal search results and optimization ✔ Systematic use ofEmail email to communicate with ✔ ✔ ✔ ✔ clients & prospects. Brand managementSocial through building and managing ✔ ✔ ✔ ✔ online communities
  24. 24. Demand for insurance exists, it is not created*Are you visible? Do you get a lead Do people ‘visit’ you? Did you convert?SEO, email, social, etc. SEO, channel content Lead quality, sales management
  25. 25. 5 Digital Tactics - Relative Cost Cost of VisibilityCost Email Local Search Social Organic PPC Marketing SEO Media SEO
  26. 26. Insurance Pay-Per-Click Most Competitive KeywordsCustomer Acquisition Can Be $2,000 Find Competition - Low &Commission - High: Sweet Spot Infographic: WordStream
  27. 27. 5 Internet Tactics - Sales Lag Before you see leadsLead Timeto Results Email Local Search Social Organic PPC Marketing SEO Media SEO
  28. 28. 5 Internet Tactics - Program PhasesTime Most agents are stuck here with social media marketing Set Up Content Engagement Leads Sales Email Local Social Organic SEO PPC
  29. 29. Yellow Page HangoverThe days of buying ad space andgoing back to business-as-usual for 12 months are over.
  30. 30. Level of Digital Marketing Activity (Leads are Proportionate to Activity) 7 Marketing Options Local Search - Website SEO - Website Email Social PPC (Text - SMS) (Purchase Leads)Mix 1 Mix 2 Mix 3 1. Do it yourselfTime Money 2. Pay for services 3. Do nothing
  31. 31. 5 Internet Tactics - Relative ROI e e ng ng Ra RaTypical ROI Email Local Search Social Organic PPC Marketing SEO Media SEO
  32. 32. The 5 Steps1. Set a top level goal2. Identify gaps3. Develop tactics4. Set segment objectives5. Measure results monthly
  33. 33. Mysterious ReferralsMost agents: 70% of new business from referrals
  34. 34. Joe Agent• 0% Growth = 160 new clients• 112 from referral @ 70%• 48 from somewhere else = 1 a week• 5% Growth = 100 additional new clients
  35. 35. To grow 5%, Joe could acquire new clients• 3 total new clients a week• 2, if retention = 95% or policies per personal lines account = 2.0• 1, if retention = 95% or commission per CL account = $1,000
  36. 36. What you saidMost important digital marketing tactic for 2012?Email Marketing - 24%Local Search Optimization - 23%Organic SEO - 21%Social Media - 32%
  37. 37. Lead Generation Trends Multi-Industry Source: Marketing Sherpa2011 Marketing Benchmark Survey
  38. 38. Sales Conversions• Different lead sources have different characteristics• Results differ if you have good lead management
  39. 39. Source No Lead With Lead Gain Management Management Referral 33% 68% +35 Social 33%* 68%* +35 Media Email 34% 52% +18 SEO 16% 36% +20 (organic) Local 16%* 36%* +20 Search PPC 8% 22% +14*There is not enough data for social or local search leads to develop separate conversion rates for them. But social leads are essentially referrals from a personal or communitynetwork, so for the moment, we are assuming the conversion rates for social are similar to traditional referrals. Google lumps website traffic from local search into either organickeyword data or with referral traffic so we could assume that conversion rates are similar to organic search traffic. However, several sources have claimed local search conversions arebetter than for natural search and some recent survey data seem to support this (see the slide on trust and relevance of search results).
  40. 40. Often OverlookedThe impact of lead management and sales skills
  41. 41. Sales SkillsIn Sync? – does your staff understand what your growth objectives are?Quoting vs. Sales – what is your staff ’s perspective on what the “goal” is?Goals – what are the individual and agency production goalsCoaching – do you have a mechanism for giving sales process feedback ?Compensation – is your agency’s compensation plan aligned with your goals?
  42. 42. Characteristics of Social and Search
  43. 43. Social is Referral on Is Steroids 37% of consumers trust what their social network says about products and 37.5% of consumers services start insurance research by checking with family and friendsSource: 2010 AIS Media Survey
  44. 44. 4 Types of Internet Search • Organic (SEO) - keyword and link driven • Local - exploding due to tablets, smart phones • Paid - difficult for mainstream keywords • Social - 67% increase since 2010**Source: Fifth Annual comScore Local Search Usage Study
  45. 45. Trust and RelevanceSource: comScore Local Search Usage Study
  46. 46. Social• LinkedIn = Business• Facebook = Personal• Twitter = news, celebrity, other?• Google+ = nerd, photography, other?
  47. 47. Maximize • Budget • Time
  48. 48. Leverage Your Website• Across multiple channels • email, social, mobile• Time and money are finite resources
  49. 49. Ecosystem Print, Direct Mail
  50. 50. Insurance Research Starts Here • Asking friends and family - 37.5% • Search Engines - 32% • Yellow Pages - 3% • Everything else - 27%Source: 2010 AIS Media Survey
  51. 51. Back to JoeHow will he close the gap andgenerate enough new revenue to achieve 5% growth?
  52. 52. It’s a game of increments.
  53. 53. How and What - Increments by Segment Email to Clients Improved LeadRetention improves Management by 1 point Conversion rates improve by 10 points Local Search Optimization Email to Clients 50 additional leads Referrals increase by 50
  54. 54. How - Increments by Segments SEO50 additional leads Social Marketing 50 additional leads Email to Clients PL policies per account to 1.5; CL average commission to $850
  55. 55. The 5 Steps1. Set a top level goal2. Identify gaps3. Develop tactics4. Set segment objectives5. Measure results monthly
  56. 56. Number of Conversion New % of Total Tactic Source Leads by LOB Leads Rate Commission NewE-Newsletter +1% Retention NA NA NA NA-$10,000 NAE-Newsletter New Policies Personal Lines 50 50% $6,250 3.4%E-Newsletter New Policies Commercial Lines 50 50% $21,250 11.6% Personal andLocal Search New Clients 50 35% $9,900 5.4% Commercial Personal and SEO New Clients 50 25% $7,150 3.9% Commercial Personal and Social New Clients 50 50% $13,750 7.5% Commercial Passive Personal and New Clients 320* 50% $88,000 48% Referrals* CommercialUnidentified Personal and New Clients 192* 35% $36,960 20.2% Sources Commercial Total New $183,260 100%Commission
  57. 57. Revenue New Total %ChangeRetained Revenue Projected$930,000 $183,260 $1,113,260 +11.3%
  58. 58. Key Points• Results are process driven• Measure early returns by source• Objective doesn’t require perfection
  59. 59. Key Points #2• Referrals still important• Lead management improves all• New sources are high conversion
  60. 60. The 5 Steps1. Set a top level goal2. Identify gaps3. Develop tactics4. Set segment objectives5. Measure results monthly
  61. 61. Digital Demystified: The channels aredifferent but the fundamentals are the same.
  62. 62. The 5 Steps1. Set a top level goal2. Identify gaps3. Develop tactics4. Set segment objectives5. Measure results monthly
  63. 63. Thanks for attending!Demystifying Digital Marketing Five Steps to Managing a Strategy for Agency Growth and Profit

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