EXECUTING A STRONG GROWTH PLAN FOR INDEPENDENTS

Leverage agency resources today that will pay off in the future

By Nicole Farley

In an increasingly competitive market, it’s essential for small and mid-sized agencies to have a growth plan. However, it’s difficult to concentrate on the long-term future when the short-term needs are pressing. Without a strong integrated growth plan in place, there are limited options for long-term profitability. Unfortunately, too many agencies put the growth plan on the back burner and find themselves continually playing “catch up” in a changing landscape and then are faced with a flat future.

As an independent agent, resources are precious—including time, money, and relationships. As an agency you can leverage several resources to work for you now that pay off in the future. After all, you advise your customers to plan for their future. Shouldn’t you do the same for your agency? Here are a few key steps that agencies can take to create a diverse growth plan and maximize resources that aren’t complicated or time-consuming.

Create an effective marketing strategy, no CMO required

Crafting an effective marketing plan is a critical component in an agent’s growth plan and, without a dedicated team, the task can be overwhelming. Your plan should begin with a focus on what you do well, i.e., your value proposition. Once you know this, state it eloquently and simply. Value proposition communication should be concise and accurate, so don’t use ten words when five will suffice.

Once you’ve outlined your value proposition, crafting the rest is much easier. The following tips and considerations can make it less daunting.

Know what you know. Define who your customers are and understand what they need. How are your customers (and your customers’ customers) similar in terms of industry, size, geography, etc.?

The next step is to determine how to market your message to the right audience via the right targeted platform. It helps to ask the following questions:

• How did your current customers find you?
• What do your current customers do (and not do), in terms of behavior, or who are they, in terms of mindset, life stage, or pain point that caused them to find you?
• What competitive advantage do you bring to their business serving as an agent/advisor?

Once you know the “what” and “why” you want to market, you can now execute.

Show up, but also don’t be everywhere. Focus on what you can do, and then do those few things well.

They can’t find you if they can’t find you. Do you have a prominent physical location with proper, informative signage? Local advertising is effective, and remember these are your neighbors, so speak authentically.

Digital footprint. Customers find you via internet searches. It’s really important (and easy) to commit to regularly checking your Google Business Profile for accuracy. Tip: Search engine optimization (SEO) consultancy can be very affordable. Or maybe you know someone studying digital marketing; hire periodically to review your website and improve your Google score.

Additionally, consumers today have come to expect easy, digital experiences in both their personal and professional lives. Remember, you’re building a strategy to bring prospects to your doorstep both in-person and online. Adding a digital application form on your website collects contact infor-mation and starts the quote process when it’s convenient for the customers.

Word of mouth. Are you currently leveraging the power of referrals? Do you manage customer reviews and your reputation proactively?

Be social. Commit to making media platforms (Facebook and LinkedIn for starters) really engaging. Quick tip: Everyone loves video content, and it’s easy to create with the tools you already have, i.e., a smartphone, nice background, and ring light. Keep it simple and create content that you would want to interact with.

Mix it up. Varying your tactics will produce new results that yield new insights—and results. For example, if you have always done direct mail, maybe devote new dollars to local sponsorship.

Patience is key. Successful marketing will require more than one touchpoint, so trust the marketing process and don’t give up. Effective marketing plans take time and iterations. Allow time to test and retest to see what resonates.

Maximize opportunities coming through the door

Now that the leads are coming in, the next step of a growth strategy is how to maximize them. In an ever-changing landscape, understanding a client’s needs can be challenging. For example, the shift to hybrid or work from home (WFH) has changed the way we think about a client’s coverage needs. WFH these days might mean working from a recently purchased campervan that changes states monthly.

Another example is that more individuals are creating side hustles to help alleviate the pressures from the economy. Agencies can leverage these new opportunities to sell more custom products as the needs evolve.

Diversify lines. Fact: A client retains better if more than one product is on the books. Client retention is the easiest way to create long-term value and growth. Writing additional lines is a great investment for the future of the agency. Example: You write a client’s homeowners policy (personal) and they happen to also own a bakery. The additional policy you would sell could be a BOP (commercial) to protect additional, long-term revenue because you aren’t licensed to facilitate their combined coverage needs.

The creation of new small businesses remains strong, so adding commercial lines to your personal portfolio can give your clients a one-stop shop and keep them renewing for years to come.

Sell the prospect. You’ve heard the phrase, “One man’s trash is another man’s treasure.” Even if you tighten your marketing net to your ideal customer, inevitably you will pull in a prospect that may not fit your wheelhouse, and that is okay. But you spent valuable resources bringing that prospect in the door.

Tip: Rather than let it drop to the floor, several companies can facilitate selling that prospect to another agency that specializes in that type of prospect. The clients’ needs are met by an expert, and you gain revenue for the referral.

Streamline processes with tech

A significant portion of an agency’s resources should be centered around new business and growth initiatives. To keep those objectives in the fore, everything else should be done as efficiently as possible. Insurtechs have exploded onto the scene to help address this issue. Investing in technology can help decrease cost per quote, reduce time spent prospecting, increase uncaptured revenue streams, streamline back office work, and empower you to understand your business better.

Investing in a technology solution is a big decision. You should take into consideration cost, interconnectivity with existing technology, potential disruption to your current workflow, and longevity. Tip: Schedule demonstrations of several different platforms that cater to your size and type of business before committing. Make sure you understand the pros and cons of each product. Also, look for a solution that will grow with you and your one, five, and 10-year growth plans.

Additionally, leveraging technology will allow you to collect and analyze your data in a new way. Data will help determine where and how to invest in your agency as you grow. With this knowledge comes the ability to take snapshots of your business, and you will undoubtedly make better-informed decisions.

Leverage carrier relationships

Insurance carriers have a wealth of resources to help independent agencies grow. Once an agency is appointed, the carrier is invested in the agency’s growth and will provide support in any way they can.

Training. Carriers offer training not just for insurance product knowledge, but also for best practices in sales, office management, and growth.

Sales Centers. Tip: Carriers have service and sales centers that can be leveraged (for a cost) to help alleviate the work associated with smaller accounts, enabling you to focus on larger revenue opportunities.

Moving forward

In today’s competitive environment, ensuring the long-term viability of your agency while staying profitable in the short term requires a delicate balance. Understanding the changing market-place in insurance, as well as the resources available to you, is mission critical in creating a growth plan.

Lean into marketing that understands and resonates with your customers, utilize today’s technology to enhance your day-to-day, maximize all revenue-generating opportunities, and take advantage of carrier relationships.

Utilizing the steps, resources, and technologies outlined above can help agencies gain a competitive advantage. Your future self will thank you.

The author

Nicole Farley is vice president of carrier operations at Bold Penguin, which offers an integrated digital platform for simplifying small commercial insurance. Its product suite has digitized and transformed slow, manual processes resulting in reduced costs, increased efficiency, and better overall outcomes. Nicole has worked closely with enterprise partners and carriers to streamline the small commercial quoting experience for agents and small business owners. For more information, visit boldpenguin.com.