What is the key to an effective insurance marketing system that attracts a constant flow of new clients? The answer to this question is simple: target a niche. Let me explain…
A common mistake insurance agents make is using a shotgun approach when it comes to marketing. Meaning, everyone is a prospect. Effective marketing matches the right message to the right market. Or as Dan Kennedy, author of NO BS Direct Marketing, puts it, “Message to market match”.
These days, people are bombarded with thousands of advertising messages through television, radio, the Internet, direct mail, and many other advertising alternatives. As a result, response rates (on what were once effective marketing systems) have dropped significantly.
An insurance marketing system that targets a large demographic will get a much smaller response rate compared to an insurance marketing system that targets a specific niche. Let me give you an example…
Not too long ago, one could compile a list of people ages 55 to 75, with half a million in net worth or more, and income of 75,000 and above, send a direct-mail piece, and get a significant number of leads.
If you tried this today, chances are, you would get a meager response at best. Even seasoned, well-paid copywriters are having trouble squeezing out a decent response rate.
Sure, you might be thinking, anyone in the above age group with that kind of income and net worth needs insurance and financial planning. That’s true. But these people are being doused with insurance and financial services product offerings every day. Plus, nothing separates these companies from each other. However, if you target a message to a specific niche, for example, ‘pilots’ or ‘dry cleaners’, your chances of getting a good return on your marketing dollars can increase significantly.
Let me give you a marketing message example:
Here is an untargeted, average financial services marketing slogan… “How to Plan for Your Retirement”
Here is a targeted marketing message… “Attention Cessna Skyhawk Owners: FREE Seminar Reveals How To Live Debt-Free So You Can Pay Off Your Cessna Loan and Retire Earlier!
This targeted marketing message needs work because I don’t fly, and I don’t know exactly what this market needs or wants. The idea here is to get you thinking differently about your insurance marketing and hopefully uncover breakthrough marketing messages that will attract new clients to your practice.
For an insurance marketing system to have the best chance of success, it’s important to carve out a niche, find out what their needs and wants are, and create a marketing message that your niche will respond to.