As any marketing student can tell you, the four Ps in the marketing mix are product, price, placement and promotion. Typically, when talking about the four Ps in marketing class, the discussion is on how they apply to marketing for consumer products. I want to explore today how they apply to your insurance agency.
You might be tempted to think of your product as the insurance you sell. You're not entirely wrong, but I want you to think about your agency as your product. Ask yourself: What is your vision and goals for your agency? What are your agency's strengths, weaknesses, opportunities? What do you do better than your competition? Who is your target audience?
The unfortunate thing about the price of what you sell is you don't set the price. You only communicate what the consumer must pay. There are no special offers or weekly sales to drive consumers through your doors. So you sell on the value of using an independent agent. Here's what we like to tell our agents: use price-based marketing to generate leads and then find the plan that best meets their needs and explain why the coverage needed may cost more, but it is the better choice.
Placement is how you provide your product where consumers want it; it's how your distribute your product. In today's online world, that would be your insurance agency website. Think of your website as the center of a bicycle wheel, and all of your marketing activities are the spokes leading to that center. Your website should be designed to sell insurance by capturing lead information when consumers request a quote. It needs to be a reflection of your agency both in design and content so your audience gets a good understanding of your product.
Promotion is the methods you use to tell your target audience about your product. This could include print/radio/TV advertising, email marketing, community events, social media, online advertising, guest blogging, etc. To get the most out of your promotion efforts, you need to research your target audience and go where they are. If your target audience is largely online, then the bulk of your marketing budget needs to be spent in online marketing.
- Identify what makes your product (aka your agency) different.
- Look at how you can use price-based marketing to generate leads.
- Conduct an insurance website audit to determine how well your website is currently working for you.
- Determine where you audience is and tailor your promotions strategy to be in those places.
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