Business & Trends

Traditional Insurance Marketing

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Traditional Insurance Marketing

The technology in the insurance sector is constantly evolving these days, having a successful business in any industry can seem daunting. In order to be successful, you must generate interest in your product. If you want to make it in the insurance business, the key is to constantly drum up new leads and then close them.

First you have to find these prospects and then decide if any of those prospects have true potential of becoming a longtime customer.

But which way is better when generating leads? Using technology including Internet lead providers or going the old-fashioned way.

Let us take a look at some of the traditional methods of insurance marketing.

Before we had the Internet, the way most businesses stayed afloat was by word of mouth, references and traditional networking.

If one of your clients was happy with your service, they would tell their neighbors and then their neighbors would tell their relatives and so on. Even before the Internet, word of mouth could work against you fairly quickly if someone who was well connected in the community became angry with you or your company.

The negative reviews about the insurance company always spread faster than good ones, regardless of the lead generation method used.

Traditional networking, where you glad-handed people and gave them your elevator pitch and a business card, worked well before. How else would people know you existed unless you could afford a billboard or pay for a commercial?

Traditional lead generators, such as direct mail, conducting seminars or handing out flyers, cost a lot of time and money, and consumers are well practiced in avoiding traditional methods.

They toss “junk mail” in the trash, throw flyers away without looking at them and do not take time out of their own busy schedules to show up for your seminars.

The other advertising in highly sought media outlets can be extremely expensive.

Cold-calling is also daunting and not really effective because consumers know how to avoid you on the phone as well.

They can sign up for “no-call lists,” or they simply choose not to pick up the phone when an unknown number calls. If you do get through to someone, most of the time, they are annoyed at the interruption and as an insurance agent this could really dampen your spirit when you get hung up on several times in a row.

When you finally reach that person who could be a potential new client and is willing to listen, you may not as pleasant on the phone and could come across as insincere.

However, traditional methods can often be more successful than technology-only tactics depending on your target demographic

If there is an older demographic of individuals you are trying to reach, direct mail and print advertising may be your best bet. They will appreciate the fact that you took the time to understand their needs as a consumer.

If you feel like you could reach your potential clients better by meeting with them face-to-face, and you have the money and the time to do so, holding a seminar could hold more value because the potential clients can put a face to the business.

posted by Xplico Insurance Company Limited XIC LTD
01 Apr 2014


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