Is there a “right” customer for your insurance agency?
I love this question, because both new and experienced agents ask it. Here’s my answer: The only “right customer” for an agent is a buying customer. If you’re a captive agent, your customers may be defined as a Line-10-eligible customer; independent agents have the ability to define their customers more freely. I like to encourage agents to consider investigating who that “right” customer really is they’re looking for.
How To Find The Right Customer
1. Identify your target customers.
Many agents target only people they think would buy their products or sell only to people they know through their insurance marketing activities. These strategies may work for a while, but won’t likely lead to consistent high-value customers or referrals.
Instead, start by asking yourself these basic questions: What type of people does your agency (or carrier) typically write? This is a great starting point, because if your carrier typically writes married homeowners with good credit, targeting single twenty-somethings who rent or drivers who need an SR-22 isn’t a good plan. With this basic information, you can begin to be a little more precise about your ideal customer.
2. Use leads to find the most promising prospects.
Once you have a ballpark idea of who you should be targeting, consider working with a reputable, data-driven marketing partner (like EverQuote) to precisely find your best prospects. Our 100% organically generated leads come to our website with an unbiased request—they’re consumers who are already looking for insurance products—and then we work to provide that lead information to agents.
Want to run a successful agency? Then it’s time to roll up your sleeves. Check out 5 Smart Ways To Set Up Your Auto Insurance Agency For Success to learn more.
At EverQuote, roughly 40% of our workforce are data scientists. Combined with the work you’re already doing (like getting referrals), using leads from EverQuote will help you pinpoint the right people. Based on the extensive form questions they’ve filled out, we can see common traits, narrow the pool, and send only the best-fitting prospects your way. Additionally, the ability to figure out your “on bind/on policy” performance will save you a lot of money along the way—and help you grow your agency faster.
3. Focus your marketing efforts on the prospect pools you’ve identified.
Traditional marketing methods (TV ads, billboards, and paper ads) make it hard to know whether or not your efforts are reaching the right audience.
Sometimes this experience is eye-opening for our agents. For example, one of our partner agents wanted to confirm his beliefs about his ideal customer, so he gave us an outline describing that person. When we helped him test his hypothesis, the results were surprising—his true ideal was the opposite of his description! We see it happen all the time—agents think they want a prospect who’s married, owns a home, and has two cars, but the people who are actually closing don’t fit that description at all.
Additionally, your ideal customer can change. Sometimes it’s due to staffing, changes in consumer habits when shopping for vehicles, tax season, etc. No matter the reason, having a partner who can work with you to develop a roadmap showing you the ebbs and flows of your agency will help you make more educated decisions when working with your ideal customer.
Once you have used leads to get even more information about the leads you’re actually closing, you can begin running targeted marketing campaigns focused on those groups. For example, if you are a locally-focused P&C agent who does well with families, you could consider sponsoring a youth sports team in your area. Or, if you're an agency who serves multiple customer types over a large area (for example, an entire state), you’d likely want to focus on digital marketing and perhaps regional print ads (newspapers, etc.).
See, online leads aren’t good just for closing policies—they can help you learn data about your customers that you can apply in every aspect of sales and marketing.
Where To Find Out More
You can spend your career trying to figure out who your “right” customer is all by yourself—or you can partner with us to get a deeper look at your insurance marketing.
Click here to schedule a consultation. It’s 100% free—and it could change the trajectory of your insurance agency for the better.