Marketing Your Agency is More Than Buying a Few Ads

It’s a Master Strategy Implemented by Daily Tactics

There are a lot of unfounded rumors about the relationship between marketing and selling. Some say that the two are one and the same. Others whisper that marketing is nothing more than a few ads and a Web site and that selling does all of the heavy lifting. Still others proclaim that marketing involves virtually every aspect of a given venture. Who’s right and how does it relate to the average insurance agency?

Two late experts provide revealing analysis. Theodore Levitt, former Harvard professor and editor of the Harvard Business Review, wrote in his classic paper “Marketing Myopia” that “selling is not marketing.”

“[Selling] does not, as marketing invariably does, view the entire business process as consisting of a tightly integrated effort to discover, create, arouse and satisfy customer needs.”

Management authority Peter Drucker similarly notes, “Marketing is the whole business seen from the customer’s point of view.”

Based on these timeless statements, then property and casualty marketing is almost everything that your business does, as viewed from the outside. Therefore, successful agency marketing involves more research than culling names from the phonebook or the Web, more creativity than changing the name of a prospect on a proposal cover, more stimulation than offering free quotes, and more satisfaction than picking this year’s lowest bid. And you can easily interpret Drucker’s “customers” as more than just current insureds. They also include former clients, new prospects, company reps, vendors and others.

More is Needed to Grow

It is a major mistake to be satisfied that you are adequately marketing your agency and supporting the sales efforts of your CSRs and producers by sending out some letters to a list, running occasional ads, and hosting a Web site. More than this is needed to grow your book. That’s because the act of selling a policy, either personal or commercial, is always easiest when a prospect buys into the image that your agency’s marketing projects. They think that they know what they are getting into before they even talk to you. It’s one of the key reasons why GEICO sells so many policies.

Yes, quality marketing can be costly for a growing agency, but it’s more expensive not to do it in the long run. It involves continuous image enhancements, staff training, and better presentation tools, in addition to mailings and media purchases.

The place to start the upgrade process is in the physical office itself. Cheap or worn furnishings, an old answering machine, dirty walls, and worn carpeting all discourage sales. Business cards and stationery that’s self-printed, low quality or outdated have an equivalent effect. An up-to-date, informative, and quote inspiring Web site is also essential. In addition, agency employees who are poorly dressed, surly, or disinterested demonstrate how selling and marketing intersect and how one can cancel out the positives of the other.

Formal proposals and even simple quote printouts similarly connect at the sales and marketing line, as they nakedly expose your image to the buyer at the key moment of decision. And yes, mailings, advertising buys, and Internet promos are what most people think of when it comes to marketing. They are right, but as Drucker and Levitt state, they’re only part of the picture. Still, these actions represent the easiest path to delivering messages that enhance your image while attracting fresh leads from selected targets or the public at large.

As Levitt wrote, marketing involves a tightly integrated effort. So, every agency promotion, regardless of the medium, must neatly snap together with the other aspects of your business. Buyers expect logic, organization, and consistency from those who want their money, particularly when it involves protecting major assets.

Invest in Marketing

To grow in a down economy, agents must look at marketing and marketing ideas as investments rather than expenses. The time to spend is now when ad sales people are willing to deal, when unsolicited direct mail is still legal, and when exploiting the Internet is still basically free. But don’t do it just to feel good. Integrate smart targeting with business creativity while connecting to and advancing your firm’s professional image. Combined, these marketing efforts provide the support that your agency’s internal and field sales people require. And after all, isn’t making the sale the real reason why you’re in business?