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5 Reasons Why Insurance Agencies Should Focus On Inbound Marketing

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Posted by John Beveridge on Apr 9, 2014 5:30:00 PM

5_reasons_why_insurance_agencies_should_focus_on_inbound_marketingAs a former employee benefits producer with 25 years of experience in the industry, I know better than most how much the insurance business has changed and how it is continuing to change. Business uncertainties surrounding Obamacare are changing the insurance marketplace forever - carriers are cutting compensation, the legislation seems to change weekly at the whim of the President and insurance buyers don't know how to react. On the commercial insurance side, the continuing uncertain economic environment has lessened the value of client relationships, forcing long-term customers to explore alternatives out of economic necessity.

At the same time, the business buying process has changed. The old agency go-to lead generation method of dialing for dollars is no longer effective - inbound marketing software provider HubSpot finds that 92% of telephonic outreach goes to voicemail. That's not surprising in light of the fact that the average buyer completes 57% of their sales process before ever contacting a salesperson (Corporate Executive Board.) So how should insurance agencies change to thrive in the new marketplace they find themselves in?

Some insurance agencies double down on their old lead-generation techniques: if we're not generating enough leads, we need to make more phone calls! Other agencies have adapted by implementing tactics that match the way their buyers want to buy - that is inbound marketing. Inbound marketing is a process that attracts qualified buyers to your website with useful content, converts visitors to leads with premium content offers and converts leads to customers by helping them find the best way to solve their business problems. Because inbound marketing is done on the internet, every tactic can be measured and tested for optimal performance. Here are 5 reasons insurance agencies should focus on inbound marketing to survive and thrive.

1. Buyers need information and seek it out on the internet

As stated earlier, corporate buyers complete most of their buying process before ever contacting a salesperson. They perform search engine queries to learn about the problems they face and potential solutions, they follow people and companies they trust on social media to learn how others have solved similar problems and they talk with friends and trusted colleagues for recommendatiions.

Inbound marketing helps buyers find your when they're conducting research. They find you by reading blog articles you write about their problems that show up in their Google searches. They learn more about their problems and your company by accessing premium content information like webinars, videos and eBooks.

On the other hand, if you're not publishing useful content on your website, they won't find you and you'll never get a chance at their business.

2. Your website is your corporate identity in the new marketplace

When one of your producers meets a potential buyer for the first time, one of the first things that buyer will do when the producer leaves her office is to look at your website. If it's an unprofessional-looking piece of brochureware, that's what the buyer will think of your company - that you're not professional.

I recently was on the website of a top-ten national broker whose website looked like it was done (poorly) in the 1990's. Despite the fact that they're a top-ten broker who probably does good work, many people don't know who they are and their website sends out terrible signals about their brand. Their website portrays them as behind the times and probably not capable of dealing with the problems buyers face in 2014.

A well-designed website with helpful information that is easy to find is the hub of inbound marketing. In addition to attracting buyers you don't know from the internet, it also portrays you as a high-quality organization to buyers you meet offline.

Download Rapidan Strategies eBook, Inbound Lead Generation For Insurance Agencies

 

3. Because of the trend towards risk-reduction in the buying process, relationship selling is becoming less effective

According to Sirius Decisions, the average sales cycle has become 22% longer over the past five years, with 3 or more decision-makers participating in the buying process. Gone are the days of the CEO buying from their golfing buddies - consensus decision-making has become the norm. 

While relationships will always be important in the business buying process, inbound marketing content helps scale your relationships to other key players in the decision-making process. A well-written blog article about the problems your buyer is facing gives them a free sample of what you can do professionally, demonstrating your expertise and supporting your relationships.

A well-thought out lead nurturing program keeps you top of mind with buyers in their lengthened sales process

4. Most of your competition hasn't adapted to the new selling reality

Take a look at the websites of your ageny's competition. My guess is that most of them are brochureware and aren't being used to generate leads and educate buyers. Which is exactly why you should focus on inbound marketing. Unlike other industries, inbound marketing competition is not well-established with insurance agencies.

If you look at the marketing industry, you'll see an industry that is hyper-competitive for search engine rankings and buyer attention. Everybody and their brother has a blog. While you should always strive to produce stellar content, that's not enough to stand out in competitive industries. 

Insurance agencies have an opportunity now to get a jump start on their competitors. The longer you wait, the more leads you lose to your competitors.

5. Inbound leads are less expensive to generate than outbound leads

According to Search Engine Journal, inbound leads cost 61% less than outbound leads. Why? Because inbound marketing is a repeatable, scalable process that works 24 hours per day. A blog article you write today will generate leads 6 months from now. Inbound marketing provides evergreen lead generation.

Because much of the inbound marketing process is automated, your producers can focus on working with qualified leads who have opted in to your sales process. No more wasting time dialing for dollars - instead, your team will focus on closing deals with buyers you can help.

Summary

If your insurance agency wants to thrive in the new insurance marketplace, it's time to shed unproductive tactics and embrace the 21st century buying paradigm. By focusing on inbound marketing, you'll postion yourself for success and have fun doing it. I mean, really - who likes cold-calling people who don't want to talk to them?

Topics: Inbound Marketing, Professional Services

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