8 Ways To Experience Growth Within An Insurance Agency
The 21st century has been a rollercoaster for growing companies and agencies which have faced dynamic business environments, constantly changing consumer behaviors, and fast-paced product evolution. Gone are the days when companies and agencies grew using conventional methods, they must adapt and innovate to grow in such a competitive environment. As distances have become a diminishing problem courtesy of the internet boom, the clientele and target audience for companies have shifted from a national to an international focus. Although this has provided companies with greater opportunities it has come at the cost of questioning the conventional method used in a business which had been thought to be “Insourcing” i.e., to perform your tasks inside the company to cut down costs. Many analysts have provided numerous talks on how to scale up companies, but we want to take an agency-centric approach, and according to business leaders in the field, the top 8 ways to grow an agency are:
Business Development Starting off with the most widely accepted and effective way to scale up your business. Targeting a new audience is vital for a variety of reasons. Firstly, a new audience provides fresh data on consumer behavior and in-depth information regarding which market segments to target and which prove to be more profitable and efficient. Secondly, it is an effective way to achieve short-term goals and lay the foundation for the business's long-term goals and behaviors.
Cross-Selling When a customer is interested in purchasing a certain product, cross-selling can be an effective way to create demand for other products a business offers. Many times, customers are not even aware of the full range of products a business deals in, educating them effectively can pave the way for them to make an informed decision. A good example can be how companies assign a certain product to be a loss-leader, as it brings customers in and encourages them to buy other products offered as well. Another example can be seen in the insurance industry, which offers discounts if the insurer buys multiple policies from the same company. Businesses can also offer products that complement each other, which could entice customers to buy more.
Cross-selling enables businesses to cut down on costs in customer acquisition and lead generation. Furthermore, cross-selling may come with certain discounts resulting in decreased profitability, but it can increase the number of sales with lower advertising costs. Besides, it is better to sell a product at a lower price rather than not sell it at all. Page Break
Increasing Coverage In the age of competition, customers have a wide range of options to pick from, and agencies must set themselves apart from the rest, one way to do so is shifting from standardized packages to specialized packages which more preferably cater to the cucustomer's unique situation and needs.
“The best way to differentiate yourself from your competition is to truly show your customers that you care. Not by talking, but by listening to their needs and responding in ways that save them time, money, or solve a real problem.” -Kelly Donahue-Piro
Increasing knowledge of your products gives you an edge over competitors and helps build better relations with your clients as they feel like you are prioritizing their needs and not just maximizing your profit. On top of that, they will not have to go through the hassle of finding different agencies for various products when your company provides a one-stop solution for all their needs.