What are the Essentials for Effective Insurance Agency Marketing? Today vs. 30 Years Ago

When Confluency Solutions launched two decades ago our mission was to help independent insurance agents with marketing using readily available digital tools. That mission hasn't changed, but boy, the tools have!

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Confluency did a survey back in the early 2000s and found that less than 30% of insurance agents had a website. Nearly all those websites were little more than business cards for a computer screen. It was telling that so many insurance agents referred to their website as their ‘web page'. That's typically what a website amounted to and I suspect that the yellow ‘page' hangover had a big influence over how we thought about the world of marketing, promotion and advertising.

Long held paradigms are hard to shake, even today, but to be an effective marketer in today's fast moving and incredibly diverse insurance marketplace, we have to let go of those old notions and adapt. But you can't be everything, everywhere, all at once. So…where to start? What are table stakes today?

Let's work our way up in time starting about 30 or so years ago, in the ancient 1990s…

1990

In 1990, the essential elements of a marketing plan for independent insurance agents were:

• Yellow pages: The yellow pages were the go-to resource for people looking for insurance. A listing in the yellow pages was essential for any independent insurance agent who wanted to be found by potential customers. An important aspect of YP ads is that decisions regarding ad copy and budget didn't change much for most insurance agencies from year-to-year. Set it and forget it and go back to the business of insurance.
• Newspaper ads: Newspaper ads were another effective way to reach potential customers. Ads in local newspapers could be used to promote specific insurance products or services, or to simply raise awareness of the agent's business.
• Direct mail: Direct mail was a good way to reach potential customers who were not already familiar with the agent's business. Direct mail campaigns could be used to send out brochures, newsletters, or other materials that would educate potential customers about the agent's products and services.
• Networking: Networking was an important way for independent insurance agents to build relationships with potential customers and referral sources. Agents could attend industry events, join professional organizations, or simply get involved in their local communities to meet new people and build relationships.
• Word of Mouth (referrals): These could be passive and usually were but many agents had, and continue to have, growth success because they actively ask for referrals from satisfied clients.
• Cold Calling: Hard to believe but this was a staple for many budding insurance agents leading up to the 1990s. Technology was much different 30 plus years ago. Cell phones were rare, limited in use, and frankly, were bricks. Prank calls were a nuisance but nothing like the plague we call spam today.

2000

The essential elements of a marketing plan for independent insurance agents in 2000 were similar to those in 1990, but there were a few key differences. The rise of the internet began to change the way people found information and made decisions, and independent insurance agents needed to adapt their marketing strategies accordingly.

• Website: By the early aughts a website had become an essential part of any marketing plan for independent insurance agents. A well-designed website could be used to provide potential customers with information about the agent's products and services, as well as to build trust and credibility.
• Google Business Profile: Launched in 2004 as Google Local, the now feature-rich directory platform has gone through at least three name changes. As Google refined business profiles to include photos, videos, posts, reviews and more, a complete and up-to-date Google Business Profile became more and more important as a factor for appearing in search results for local businesses.
• Online reviews: Online reviews were being posted on a number of seller websites, like eBay, as early as 1999. As we moved from the twenty-aughts to the twenty-teens, online reviews, particularly on Google, started to morph into the 800 pound gorilla they are today.
• Email marketing: Email marketing was a cost-effective way to stay in touch with potential customers and referral sources. Email campaigns could be used to send out newsletters, updates, or special offers.
• Online directories: As we moved into the 2000s, once dominant directories, which had moved online started to become used less. However, the accuracy of business data across the online directory ecosystem was and continues to be a ranking signal for Google local search.
• Social media: Social media platforms like Facebook, Twitter, and LinkedIn were becoming increasingly popular, and independent insurance agents could use these platforms to connect with potential customers and build relationships.
• Search engine optimization (SEO): SEO had become important for independent insurance agents in the early 2000s. By optimizing their websites for search engines, agents could make sure their websites appeared high in search results when potential customers were looking for insurance information. But this was the wild west. Google didn't become the dominant search engine until 2000 and SEO techniques - white and black hat - were novel and changing rapidly.
• Pay-per-click (PPC) advertising: PPC advertising was another way to reach potential customers in 2000. Agents could use PPC ads to place their ads at the top of search results pages. Again, this was the wild west. Google's first foray into this area, in the year 2000 with AdWords, saw only 350 advertisers using the service.

2023

The essential elements of a marketing plan for independent insurance agents in 2023 are still similar to those in 2000, but the rise of digital marketing has made it even more important - imperative, really - for agents to have a strong online presence.

• Website: A website is still an essential part of any marketing plan, but it is now more important than ever for a website to be mobile-friendly, able to support third party plug-ins like video and chat, and optimized for search engines.
• Google Business Profile: The seven factors that Google uses to decide who or what shows up in local search results or the local pack haven't changed in over a decade, but the weight placed on those factors has changed dramatically. In 2023 your insurance agency's Google Business Profile is the single biggest determinant of where you rank.
• Online Reviews: 88% of consumers read online reviews, 91% of 18 to 34 year olds trust them as much as word-of-mouth, and they are the second most heavily weighted factor in Google's local search algorithm. Today, an insurance agency that isn't collecting and responding to reviews is missing an essential component in their marketing mix.
• Video marketing: During 2022 internet traffic from video reached 65% and it's growing. Social media sites like Facebook and LinkedIn are emphasizing video posts and Youtube continues to build momentum as a free, easy to use video distribution platform. Insurance agencies who are ahead of the marketing curve have learned to leverage video on their websites as well as the aforementioned places.
• Social media: Social media is still a powerful tool for connecting with potential customers and building relationships. However, it is important to use social media strategically and to create content that is relevant to your target audience. Additionally, social media platforms present opportunities for hyper-targeted advertising.
• Digital advertising in general: Digital advertising can be a cost-effective way to reach a large number of potential customers. By targeting your ads to specific demographics and interests, you can ensure that your ads are seen by the people who are most likely to be interested in your products and services.
• Online directories: Online directories are still a ranking signal for Google. Even though they have declined in importance since the beginning of the century they can still deliver a visibility boost.

A quick glance at the lists above make clear, if it wasn't already painfully obvious, that the enterprise of marketing has grown and become more complex with more options. Many of the marketing options are table stakes, at least at some level of participation.

The good news is that the foundation for the growth and profitability of an independent insurance agency is still rooted in relationships, education, and choice. As you think through your insurance agency's marketing mix, keeping this in mind will help you make the right marketing decisions to deliver value and demonstrate that value to clients current and future.

The marketing landscape is constantly changing, but the essential elements of a successful marketing plan for independent insurance agents remain the same. By focusing on building relationships, providing valuable information, and being visible online, independent insurance agents can attract new customers and grow their businesses.