Firms Seek to Reduce Marketing Costs, Whether in Traditional or Cutting-Edge Arenas

By Larry A Neilson

Whether one operates a small agency, midsize or large established firm, chances are that many if not most companies are under pressure to find ways to increase the amount of revenue they are earning while at the same time working to lower their cost for each lead. It's a tall order, especially in an economy where people continue to spend cautiously. One way to reach these wallet-watching, would-be clients without breaking the firm's budget is online insurance marketing. However, it is important to note that while this method of reaching prospects and clients-through social media, email, digital signage, web search, and content provisions)-is generally considered less costly than longstanding traditional communication methods, digital advertising costs are also on the climb. In fact, studies indicate that costs for the most popular coverage-related keywords that are part and parcel of Internet search engine-based marketing are climbing so steeply that even the largest companies are finding it difficult for their budgets to keep pace with prices. To cope with the test of balancing cost with content, companies are increasingly relying on key strategies--some old, some new:

The concept of glocalization: This new term can have different applications from one industry to the next, but generally speaking, the meaning is coined from the Japanese-based concept of starting with a macro, global idea and giving it meaning to the local community-for example, customized and personalized sales messaging that is tied to the topics that are most important to that community, often using automation tools and processes to address regulatory compliance requirements.

Saving time and money through the application of technology in every process possible: Firms have a wealth of tools that automate many aspects of running an agency, from generating calls in the call center to effortless policy rating software systems and more. Automated systems may be expensive to install initially but can end up saving costs in the long run by streamlining processes.

Using partners to cross-sell and increase advertising opportunities: Firms that complement each other in terms of products and services are banding together in the time-honored tradition of highlighting one another's offerings through cross-selling and cooperative advertising. For example, a small personal lines agency in a Los Angeles suburb found great success in joining forces with the local hardware store to feature its homeowners coverage and other policies, and vice versa.

It is true that online insurance marketing is continuing to capture an increasingly large part of the advertising pie in most companies, but there will always remain a need for traditional advertising methods and channels such as print, broadcast, email, and cooperative campaigns, to communicate the agency's message, support the efforts of the sales team, and help in the ever-constant push to convert prospects to clients.

Larry Neilson is the owner of Neilson Marketing which specializes in strategic insurance marketing solutions for MGAs, wholesalers, carriers, agencies, vendors and brokerages.

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