Demystifying Digital Marketing for Insurance Agents
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Transcript of Demystifying Digital Marketing for Insurance Agents
Demystifying Digital Marketing
Five Steps to Managing a Strategy for Agency Growth and Profit
PresentersKevin McDonald, Confluency SolutionsJohn Fear, Premier Business Consulting
What is digital marketing?
Any electronic medium used to promote sales, product or service information to clients or potential client or used to manage sales and brand data.
Not Everything is Digital But Digital
Touches EverythingIt is the way people communicate.
Print advertising to web: 67%
Direct mail to web: 59%
New Clients
Join Aggregator
Buy Agency
Account Development
Policy Development
How to Increase Revenue and Profit
Lead and Sales Management Affects Everything
Client Relationships
Client Relationships
Referrals and External Marketing
Leverage
Due Diligence, Fit, and Assimilation
How Do Digital Tactics Affect Each?
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
To Get Where You Want to Go
You have to know where you are.
What you said
Does your agency have a formal marketing plan?
Yes - 38%No - 62%
The 5 Steps1. Set a top level goal2. Identify gaps3. Develop tactics4. Set segment objectives5. Measure results monthly
The 5 Steps1. Set a top level goal2. Identify gaps3. Develop tactics4. Set segment objectives5. Measure results monthly
Revenue has been flat the last several years but Joe wants to grow 5%.
Top Down
To stay flat, Joe has to replace...
• 80 personal lines clients and
• 80 commercial
Bottom Up Tests
Or Get...
• More policies per personal lines account
• More premium per commercial account
• Improve retention
...Or Do Some of Each
How will digital marketing help him do that?
The 5 Steps1. Set a top level goal2. Identify gaps3. Develop tactics4. Set segment objectives5. Measure results monthly
Step Two
Identify the gaps between where you will end up and your top level objective; include retention rates and changes in commission and premiums imposed by your insurance carriers.
The 5 Steps1. Set a top level goal2. Identify gaps3. Develop tactics4. Set segment objectives5. Measure results monthly
GM 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
Lead Management
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?
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?
Calculating the “Cost”
What you said
Does your agency have a customer development program?
None -----------38%Annual reviews---38%E-Newsletter ---- 12%Traditional cards --6% Other------------6%
Search Engines - SEO•Organic Results •Local Results•Paid Results (PPC)
Tactic What is It? RetentionPolicies or
Commission Per Account
New ClientsReferrals
New Clients(not
referrals)
PPC Auction where you bid on keywords ✔
SEOSearch engine
optimization - how to maximize traffic and conversions
✔
LocalLocal business
search results and optimization
✔
EmailSystematic use of
email to communicate with clients & prospects.
✔ ✔ ✔ ✔
SocialBrand management
through building and managing
online communities✔ ✔ ✔ ✔
Digital Tactics and Growth Sources
Are you visible?
Do people ‘visit’ you?
Do you get a lead
Did you convert?
Demand for insurance exists, it is not created*
SEO, email, social, etc. SEO, channel content Lead quality, sales management
Cost
Email Marketing
Local Search SEO
Social Media
OrganicSEO PPC
5 Digital Tactics - Relative Cost
Cost of Visibility
InsurancePay-Per-Click
Most Competitive Keywords
Customer Acquisition Can Be $2,000
Find Competition - Low & Commission - High: Sweet Spot
Infographic: WordStream
Lead Time to Results
Email Marketing
Local Search SEO
Social Media
OrganicSEO PPC
5 Internet Tactics - Sales Lag
Before you see leads
Time
Set Up Content Engagement Leads Sales
Email Local Social Organic SEO PPC
5 Internet Tactics - Program Phases
Most agents are stuck here with social media marketing
Yellow Page Hangover
The days of buying ad space and going back to business-as-usual
for 12 months are over.
Mix 1 Mix 2 Mix 3
Time Money
Level of Digital Marketing Activity(Leads are Proportionate to Activity)
Local Search - WebsiteSEO - Website
EmailSocialPPC
(Text - SMS)(Purchase Leads)
7 Marketing Options
1. Do it yourself2. Pay for services3. Do nothing
Typical ROI
Email Marketing
Local Search SEO
Social Media
OrganicSEO
PPC
5 Internet Tactics - Relative ROI
Range
Range
The 5 Steps1. Set a top level goal2. Identify gaps3. Develop tactics4. Set segment objectives5. Measure results monthly
Mysterious Referrals
Most agents: 70% of new business from referrals
Joe Agent
• 0% Growth = 160 new clients
• 112 from referral @ 70%
• 48 from somewhere else = 1 a week
• 5% Growth = 100 additional new clients
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
What you said
Most important digital marketing tactic for 2012?
Email Marketing - 24%Local Search Optimization - 23% Organic SEO - 21%Social Media - 32%
Lead Generation TrendsMulti-Industry
Source: Marketing Sherpa 2011 Marketing Benchmark
Survey
Sales Conversions
• Different lead sources have different characteristics
• Results differ if you have good lead management
Source No Lead Management
With Lead Management Gain
Referral 33% 68% +35
Social Media 33%* 68%* +35
Email 34% 52% +18
SEO (organic) 16% 36% +20
Local Search 16%* 36%* +20
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 community network, 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 organic keyword 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 are better than for natural search and some recent survey data seem to support this (see the slide on trust and relevance of search results).
Often Overlooked
The impact of lead management and sales skills
Sales Skills
In 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 goals
Coaching – do you have a mechanism for giving sales process feedback ?
Compensation – is your agency’s compensation plan aligned with your goals?
Characteristics of Social and Search
Social is Referral on Is Steroids
37% of consumers trust what their
social network says about products and
services37.5% of consumers
start insurance research by
checking with family and friends
Source: 2010 AIS Media Survey
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
Trust and Relevance
Source: comScore Local Search Usage Study
Social
• LinkedIn = Business
• Facebook = Personal
• Twitter = news, celebrity, other?
• Google+ = nerd, photography, other?
Maximize
• Budget
• Time
Leverage Your Website
• Across multiple channels
• email, social, mobile
• Time and money are finite resources
Ecosystem Print, Direct Mail
Insurance Research Starts Here
• Asking friends and family - 37.5%
• Search Engines - 32%
• Yellow Pages - 3%
• Everything else - 27%
Source: 2010 AIS Media Survey
Back to JoeHow will he close the gap and generate enough new revenue
to achieve 5% growth?
It’s a game of increments.
Email to ClientsRetention improves
by 1 point
Local Search Optimization
50 additional leads
Improved Lead Management
Conversion rates improve by 10
points
Email to ClientsReferrals increase
by 50
How and What - Increments by Segment
How - Increments by Segments
SEO50 additional leads Social Marketing
50 additional leads
Email to ClientsPL policies per
account to 1.5; CL average commission
to $850
The 5 Steps1. Set a top level goal2. Identify gaps3. Develop tactics4. Set segment objectives5. Measure results monthly
Tactic Source Leads by LOBNumber of
LeadsConversion
RateNew
Commission% of Total
New
E-Newsletter +1% Retention NA NA NA NA-$10,000 NA
E-Newsletter New Policies Personal Lines 50 50% $6,250 3.4%
E-Newsletter New Policies Commercial Lines 50 50% $21,250 11.6%
Local Search New ClientsPersonal and Commercial
50 35% $9,900 5.4%
SEO New ClientsPersonal and Commercial
50 25% $7,150 3.9%
Social New ClientsPersonal and Commercial
50 50% $13,750 7.5%
Passive Referrals*
New ClientsPersonal and Commercial
320* 50% $88,000 48%
Unidentified Sources
New ClientsPersonal and Commercial
192* 35% $36,960 20.2%
Total New Commission
$183,260 100%
Revenue Retained
New Revenue
Total Projected
%Change
$930,000 $183,260 $1,113,260 +11.3%
Key Points
• Results are process driven
• Measure early returns by source
• Objective doesn’t require perfection
Key Points #2
• Referrals still important
• Lead management improves all
• New sources are high conversion
The 5 Steps1. Set a top level goal2. Identify gaps3. Develop tactics4. Set segment objectives5. Measure results monthly
Digital Demystified: The channels are different but the fundamentals are the same.
The 5 Steps1. Set a top level goal2. Identify gaps3. Develop tactics4. Set segment objectives5. Measure results monthly
Demystifying Digital Marketing Five Steps to Managing a Strategy for
Agency Growth and Profit
Thanks for attending!