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Marketing Plan

How to build your business.

Rick Bender

on 5 May 2015

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Transcript of Marketing Plan

Why have a Plan?
Over the next couple of years, you're
gonna spend thousands of dollars
investing in the growth of your business.
Take the time to understand how best to
do that buy learning how marketing works.
What should be your number one priority?
You can't sell,
if you don't have
someone to sell to.
Prospecting is about finding people with a problem...

a problem you have a solution to...

and they are able to pay you for that solution.
The number one reason prospecting fails is
follow through.

Or, you fail to commit to a marketing plan.

Or, you don't commit to the methods within that plan.

Or, some or all of the above.
A marketing plan is a series of advertising methods,
working together to generate leads. The most successful
plans are automated... put into motion so that you spend
your time selling and not thinking up ideas of how to get
the phone to ring.
That 80% of insurance sales
are sold after the 5th contact.
Why do customers leave?
Typically only 12% of insurance agents ask for referrals
during a review. But 86% of customers surveyed would refer their agent.
Each year, the average agency will lose between 15-25% of its customers.
Is your agency prepared to generate enough new leads to make up for the difference?
Leads Calculator
We have created a lead's calculator designed to show you an idea of how to achieve your goals.

So let's play with it.

Know who you are and
what you want to represent.
This is best understood as NICHING.

A big mistake that many agents make is that they think they need to tell everyone that they offer a large assortment of products. They think that if they tell prospects that they offer everything it will create more business. They try to be all things to all people, and nothing can be further from the truth.
"I don't know the key to success,
but the key to failure is trying to
please everybody." - Bill Cosby
The truth is that if you want more business, you must specialize (niche). The biggest success stories come from businesses that specialize... FedEx - overnight delivery, Jiffy Lube - oil changes, Block Buster - video rental.
An agent specializes in life insurance for newlyweds and young families. You'll find this agent at (or in directory listing for):
bridal shows
home and garden shows
home-buyers seminars
home furnishing stores
real estate offices
mortgage lending institutions

The agent promotes himself at these special events and generates referrals from the many families he meets.
His target audience is young (20-30s), this creates the scenarios for a long lasting relationship. Young families are more prone to doing all the things that young families do like buying a new home, car, having kids, etc. It sets the table for needs like Life Insurance, Home Insurance, Auto Insurance, Bank Loans, Retirement Planning, College Fund, etc.
By niching a market you make yourself more desirable to the people in that group, compared to those that don't niche their advertising.
Be referrable.
Deliver on your promises.
The insurance industry a few years back received a whopping D in customer satisfaction and a C in performance.
Why is this?
Because everyone has to have insurance. It's required.

The industry stopped building the relationships between agent and customer.
It became more of a sell now, and hope they stay later. In fact, in one study more than 57% of customers surveyed couldn't tell you the name of their agent.
The success of your marketing plan will come from the return on your investment.
It is important to keep your sales pipeline full. The reason for that is because responses are not always consistent. So it comes back to the point that you must always be marketing your agency.
Product knowledge is key to your success. You study it, understand it, and experience it in every sales meeting you have.

Marketing is the same thing. You don't start off knowing everything about marketing. Just like you had to learn the products you have to learn everything you can about marketing tactics.

It will take time, but
success is for those who don't give up
out of fear of the unknown.
So with that understanding...
The most successful systems are also done CONSTANTLY. There are no days off with marketing. The only time your marketing should take a vacation is when your phone
rings so much, and you can't keep up with the demand. What a problem to have. And if your current marketing plan is not making your phone ring enough... then you need to start making changes to that plan.
Follow through is best summed up by how
committed you are to your plan. I'm sure you've
heard the saying
It takes money to make money.
We provide you many resources and tools
to help develop your marketing plan. But there
will always be costs to achieving success.
You need to know your CURRENT EXPENSES
at ALL TIMES. What you can afford is critical to

If you have $XXXX for marketing you should be using all of it. When you make a profit, it shouldn't be saved, it should be reinvested into growing your agency.

Your first 5 years are the most critical, and the faster you grow your agency, the more successful you will be.
Have a Budget
A lack of commitment to a marketing plan is very common. It is also one of the top reasons for failure. The initial setup can be expensive (depending on the methods) and time consuming, but once established, it requires minimal time, and can deliver CONSISTENT leads.
In addition, you must COMMIT to your advertising methods. Direct mail is the most common method to abandon first.
Direct Mail is one of the most effective systems for generating responses. However, most business use it wrong. We will help you understand why methods fail, how best to use them, and allow you to develop the methods that best suit your agency style.
2% of sales made on the first contact.
3% of sales made on the second contact.
5% of sales made on the third contact.
10% of sales made on the fourth contact.
80% of sales made between 5th and 12th contact.
The state or quality of being loyal to a
A feeling or attitude of devoted
. Often used in the plural: My loyalties lie with my family.
The only context of a person’s loyalty to a brand's products is whether the product does what is expected or more. Service is a reflection of process and price reflects the experience within the relationship.
And we wonder why social media is disrupting the industry, our markets and our bottom line. It’s because people are loyal to people communicating with one another and sharing their knowledge and experience. The difference between yesterday and today is these conversations are transparent and reaching millions at the click of a mouse. People create loyalty by the enrichment of the relationship.
Attracting new customers and keeping existing ones is a challenge for any organization.
Customers represent commerce, however commerce is driven by value, relationships and experience. Many organizations focus on the wrong issues which are not relevant to getting and keeping customers.
Advertising and marketing, at least in the old way, is no longer relevant to getting or keeping customer.
According to Wikipedia: Brand loyalty, in marketing, consists of a consumer’s commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service or other positive behaviors such as word of mouth advocacy.
What drives Loyalty?
Reversing the Loyalty Factor
Did you notice in the wording from the CMO Council text, as well as the definitions in the Wikipedia article, the world of marketing, brands and advertising,
think people are loyal to brands.
only loyalty a brand
can instill is if it is
loyal to its customers.
According to CMO Council: For the average brand, approximately one-third of all highly loyal consumers in 2007 completely defected to another brand in the same category in 2008. This report (Losing Loyalty) has major implications for marketers and underscores the critical need for brands to more effectively engage with individual consumers by tracking their loyalty behavior and responding with relevant offers.
An example of a major brand loyalty program that extended for several years and spread worldwide is Pepsi Stuff. Perhaps the most significant contemporary example of brand loyalty is the dedication that many Mac users show to the Apple company and its products.
From the point of view of many marketers, loyalty to the brand – in terms of consumer usage – is a key factor.
Sorry to disappoint or disrupt that which has obviously been the standard of thinking by an entire industry for a long time, but it is out-dated and wrong. Yet, organizations spend time and money over and over, trying to make people loyal to their brand. It is time t0 rethink your assumptions.
Loyalty is defined as
Did you notice that the definition of loyalty has no context to
rather the context is to
. As such the
Loyalty to people is reflected by actions or attitudes aimed at serving with the aim of satisfying needs. If loyalty is not reflected in a relationship, then actions such as divorce, un-follow or rejection are the results of a lack of loyalty.
To say or view “loyalty” as anything else is trying to label people as objects, rather than relational human beings who respond to human experiences.
In summary it is people, process, product and price in that order that create the experience which may drive repeat behavior.
We have a relationship with our customers and they use our products. Use of our products impacts the relationship with the agent/company through the level of service they receive in two ways: it is a poor and/or expensive experience or the experience exceeds the expected value. Get it?
It must be said... the calculator is just a tool. And can in no way predict the future. It is simply using averages to predict a possible result. You are the difference that will make those numbers reality. You may find that your numbers are better or worse, but the calculator will allow you to adjust those percentages so you can personalize the results.
Only 35% of agencies have an active lead nurturing system.
The Budget section can often be the scariest part for a new agent. How much can you afford to spend after your expenses?

Regardless of what that answer is, for you to be successful you must always be active in marketing.
Lead nurturing generates 50% more sales leads at 33% lower cost.
The Process
Acquiring Leads
Automated Responses
Follow Through
I recommend creating a flowchart type procedure for any marketing and administration process that you feel is relevant.
Service, is not just a marketing word...
it's an
to your customer's needs and wants.
Be the difference.
The Referral is the ULTIMATE method.
It has the highest close rate... and its FREE!!!
So now what?
Build your marketing plan
Know your marketing budget
Start studying marketing tactics
Follow through and be consistent
Most importantly... Build relationships!
Doing everything we just mentioned doesn't happen overnight, but it definitely doesn't happen if you don't start the process. So think positive thoughts, smile, and be the VALUE your customers expect. When you need help... the Marketing Department at the home office is here to help you. We can't do it for you... but we can assist your efforts, advise you accordingly and give you the support you need to have confidence in your resolve.
The industry standards will act as our baseline.
• Sold Policy will generate $1,000
• 1st Contact Response Rate is 19%
• Appointment Scheduled Rate is 50%
• Appointment Close Rate is 60%
• Policies Sold per Sale is 1.75
A veteran agent should see better numbers.
• Sold Policy will generate $1,000
• 1st Contact Response Rate is 19%
• Appointment Scheduled Rate is
• Appointment Close Rate is
• Policies Sold per Sale is
Acquiring Leads represents your lead generation efforts. This is the first step of your sales funnel for good reason.
Segmenting a lead requires you to listen to what they want and need. Then group them accordingly with specific marketing campaigns to better align your message to what they want.
Track your results. You need to know what is working and what isn't. Fix the problem before it hinders your ability to grow. If an asset isn't effective, tweak it, move to something else or invest heavier in the assets that are benefiting you more.
Types of Campaigns
Stay in Touch
Special Offer
Information Gathering
Need Assessment
Schedule Appointment
Meeting Objectives
Gaining Commitment
Still Deciding
Email & Survey Email
Review Request Email
Is your insurance up to date Email
Review Request Email
"A man who stops advertising to save money, is like a man who stops a clock to save time." - Henry Ford
Advertising your agency is just as important as selling products to customers. You can’t do one without the other. So try to maintain a good balance of marketing and selling as you establish your office procedures.
You’ll want to know the demographic of the areas you want to grow in. There are several websites that will provide you a broad view of each zip code. Providing you basic, but important information about the population. Their education levels, income levels, household values and so forth.
Data is broken down by zip code:
• Population for prior years
• Gender population and percentage
• Median value of houses
• Household income
• Median monthly mortgage
• Median gross monthly rent
• Unemployment percentage
• How many houses were sold
Data is broken down by zip code:
• Educational achievement
• Marital status
• Homeowner stability percentage (5+ years)
• Household Income tiered by range (includes percentage of population in each tier)
• Occupation with percentage (for individuals employed for over 16+ years)
• Race with percentage
• Gender and age with percentage
To have a successful business, you’ll need to know your competition. You’ll need to know how strong they are in the in the market you want to work in. If you can’t compete with them, then spending your marketing money in their areas would be foolish and ineffective. So it’s very important for your business and your budget, to know your competition.
Shop Them!
Collect Quotes from Leads
Use your findings as part of your marketing.
Outline and address each weakness
and threat. Your goal is to eliminate or
minimize any issue that could hinder
the growth of your agency.
Purchased Leads
Purchased Leads are created by third party website networks who generate or purchase lead information and sell them directly to insurance agents. They are currently the most used method of lead generation in the insurance industry.
Pro: Generating leads is very much a numbers game, and Internet Leads are a great way to play that game. They are easy to buy and for the most part consistent. Their costs are steady, so they are easy to budget for. They are instant, pre-qualified, and they can be integrated into most Lead Management Systems to automate the process and make your agency more efficient.
Con: Internet Leads can be frustrating due to inaccurate information provided by the consumer or vendors who generate leads unethically. You will need to pay attention to these types of leads and report them to the vendor for refunds and improving the quality of the leads you purchase. Internet Leads require you to respond VERY QUICKLY, so you need to be in a position to do so for them to be effective for your agency.
Response Rate (lead makes contact): Current trends have Internet Leads responding around 15-20%.
Online Internet Leads
Online leads can be from the company website, google ads (or other search engines), directories or databases you added your contact info to (Facebook, LinkedIn, Yelp! or other social media websites and so forth). These leads are passive and come as viewers submit a request. Most of these sources are free and if you've built a solid infrastructure, you will have created a strong web presence for viewers to find you. Know that 80% of all consumers begin their search for insurance online. So you’ll want a solid presence there.
Pro: Most online directories are free. The only cost is your time to build and maintain them.
Con: Not sure there really is a con to creating an online presence for your agency. I guess, as mentioned before the only real cost is your time to build and maintain it.
Direct Mail
Direct Mail consists of any paper asset that is mailed to a potential lead. They require a list of addresses or a mailing program that will deliver to a targeted area (Every Door Direct Mail). Direct Mail can be a letter, postcard, brochure, door hanger, flyer, etc. Direct Mail is most commonly used in campaigns (series of direct mail pieces) mailed over a several weeks or months. Most consumers respond to direct mail after receiving the 5th piece, which is why campaigns are the recommended method, because it can generate a larger response over a single mailing.
Direct mail is most effective when you target your list to an ideal consumer. This will be different for each agent based on the demographic for their location. For example an agent in Centennial will be targeting consumers with different values than an agent in Yuma. Considering using InfoUSA.com for purchasing a targeted list.
Pro: Since more businesses have moved away from print in favor of digital marketing, the level of competitive pieces in the consumer’s mailbox are now more in your favor. Using a service like Every Door Direct Mail will help with postage costs and allow you to saturate a neighborhood.
Con: Postage costs are the number one reason for the decline in direct mail advertising. To be effective, it is recommended that you send 7-10 direct mail pieces per campaign, with a floor of no less than 5 pieces. However, the more pieces you send the more it costs to mail and the more printing costs you accrue.
Typically it takes a year for any real brand association to aid you in generating a response with newspaper. Keep that in mind, as newspaper is not known for instant lead generation. However, marketing is most effective when you saturate an area. Having a presence in many assets will give your agency more opportunities for generating leads. Just keep an eye on your Return of Investment (ROI) for each asset. If your newspaper is not returning your investment, find another circulation to advertise in.
The most effective of all marketing is the Referral. Virtually a free sale every time. If one of your customers refers you, there is a 70% chance of closing over any other asset. Referrals are easy to get, you just have to provide outstanding customer service and ask for them. Your business card is your best friend here, with every sale you make, leave 5 to 10 cards for them to pass out. Do drawings for those that give you referrals to encourage them to give you more. Take them to lunch as a thank you. Remember this was a free sale, you spent nothing to get this.
(profit - expense)/expense = ROI%
Your Message
When a client has a bad claim
experience, they will reflect that
with the price they are paying.
When you go beyond a customer's
expectation (i.e. great presentation,
wealth of your knowledge, etc.),
you improve loyalty.
The efficiency of your processes
(i.e. responding to their needs,
advice, providing options),
is a reflection of how well they
are being served.
Same applies for when they
have a great experience.
"They are worth every penny."
Automating your response to every lead that enters your CRM tool will improve your response rate. 35-50% of Leads buy from the first vendor to contact them.
Follow Through is where many agents will struggle. You need to stay in touch with your leads. Persistency wins the race.
Lead generation, the initial phase of a sales funnel, is the marketing process your agency uses to stimulate interest in its services.
Today, 80% of customers begin researching online for insurance. Because information is in abundance, the consumer now has more power than ever before. This is why agencies like yours must have a lead generation strategy that provides relevant content through multiple marketing channels.
Lead engagement takes place after you have already attracted leads from the available marketplace into your agency's sales funnel.
The people are aware of your agency and the conversation, at this point, may only be one-way. During this stage, you need to work to transform the conversation into a two-way discussion where you convince the lead of why they need you.
Response Time
Research shows that 35-50% of customers choose the agent that contacts them first.
A recent study has determined that customers with a premium increase only shop at a rate of 13%, less than half the rate among customers with poor experience (28%).
How to create need.
70% of customers prefer getting to know a company by articles/blogs, rather than paid ads.
Share Your Clients' Testimonials.
Do this through email marketing campaigns, social media, your website or blog. Word of mouth is behind 50% of buying decisions.
Be Social. 61% of agencies find customers on LinkedIn, 67% from Facebook and 53% from Twitter.
You message needs to be unique, helpful and relevant.
60% of consumers feel more positive about a agency after reading about them.
Email is KING!!!
Email is the most preferred method of contact by customers (83%). Email marketing allows you to passively remind future customers about your agency.
Focus on the Solution
70% of people make purchasing decisions to SOLVE a problem.
Focus your engagement strategy by reminding prospects of all their needs - their problems - which you can solve.
Auto insurance is a state requirement.
Your home is one of the largest financial investments you have made, protect it.
Life insurance protects your family, no matter what may happen.
your business is your livelihood, don't leave it unprotected.
Health costs are increasing every day, health insurance can help with unforeseen medical expenses due to illness or injury.
Lead nurturing is the process of building a relationship with a lead - no matter where they fall, timing-wise, in the sales cycle.
"Am I providing useful information to this lead even if they'll never buy from me?"
50% of leads aren't yet sales-ready, so nurturing those leads maximizes results rather than throwing the opportunity away.
Develop Your Process
Provide Value - Your interactions with your leads must add value to the relationship.
Don't Overwhelm - There is an abundance of info out there for them to access. You'll stand out by breaking that info into small digestible pieces.
Buying Stages - Consider where the lead is in the buying cycle, this impacts what type of info they want from you.
Timing is Everything - Avoid sending too much, you need a well timed schedule to keep in touch.
Lead Conversion
Lead conversion is the process of converting a lead into an opportunity.
Qualify Your Leads - Many agencies will use lead scoring to identify the leads that they feel have a greater chance of closing.
Manage Your Leads - Automated software will help you greatly with this, but you need a system in place to quickly respond to new leads.
Conversion - Have a strategy for how your agency will convert responses into a sale.
Map out your sales process
Review your sales process for each type of lead (product wise) identifying hand off points and conversion points.
Qualify Your Leads
As you begin the engagement process, nurture your leads with their goals in mind. Not every lead is going to be a good fit for your agency. This step is a time manager, you don't want to be wasting your time on a lead you can't sell too.
The Right Info
A key to a successful sale is to make sure you are always sending them info that addresses their need. This will dramatically improve your conversion by helping them identify your value in their buying decision.
Lead Conversion Goals
Build Trust
Understand the needs of your prospects
Provide relevant info about your product
Help your prospect overcome fears about selecting your insurance agency or product over others
Reaffirm they'll be better off with your product
The Buyer Cycle
"Acquiring a new customer can cost 5x more than retaining a current customer."
68% of customers leave because they're upset with the level of service they received.
How do you retain clients?
Stay top of Mind
Social Media
Customer Rewards Programs
Email Marketing Campaigns (i.e. Birthdays, High School Graduation, etc.)
Customer Referral Program
Coffee Gift Cards for each referral
Social Media promotions asking for referrals
Community Involvement
Service Initiatives
Charity Events
Local Sports in the community
What does that tell you about how people buy?
Full transcript