Do you know the answer to the question, “where will people go to buy home and car insurance?” It turns out, it’s all a matter of perspective. Independent agents want people go to their trusted, neighborhood agent. Captive agents hope people go to the trusted brand with the long established agent that’s active in their community. Direct sellers want people to buy online.
The pandemic has thrown all conventions out the window. People are radically changing many aspects of their life. This includes how they buy insurance.
Insurance Shopping Must be…
It goes without saying, few people enjoy the process of shopping for insurance. Therefore, shopping for insurance needs to fit these criteria:
- It must be in their face as the end of the policy period nears
- There needs to be a compelling value proposition
- It needs to be easy
Being in the customers face – for new prospects – as the end of the policy period nears is a challenge for insurance agents. The reason for this is that it’s difficult to build a contact list with policy expiration dates for prospects. Therefore, advertising is necessary. ValChoice has built the best advertising platform available for insurance agents. For more information click this link and learn more about our tools for insurance agents.
The large insurers largely sell on price. Many other companies feel they must compete on these terms. Beware, there’s truth to the saying, “those that sell on price die on price.” Price is the strategy on which only the big boys compete on in the long term. Therefore, the value proposition must take other forms for agents. ValChoice analytics enables agents to sell on value, claims handling and service.
With regards to being easy, this is up to the agent and the carrier to make the process as painless as possible.
Leaving Your Comfort Zone is Easy
In 2019, GEICO spent $2 billion on advertising. Progressive spent $1.6 billion. State Farm spent $1.1 billion. The three largest advertisers spent nearly $5 billion dollars. How does a regional carriers or local agency compete? Competing with that is a daunting and intimidating task.
Actually, competing with this massive spend isn’t as hard as one would think. Let’s look at the fundamentals.
Be Present Before the Transaction Occurs
To be transaction ready, your business needs to be in front of buyers before they buy. That’s done by advertising. Advertising used to be both expensive and difficult. It doesn’t need to be either.
Taking the expensive piece first, advertising is so complex, the industry hires advertising agencies. They’re expensive. For small companies, it’s hard to find advertising agencies with expertise in advertising what you sell. Generally speaking, agencies require a minimum spend of $60,000 per year in order to become a customer.
Now advertising through ValChoice is available. From a cost point-of-view, you advertise as much as you wish. We don’t care. Many agencies start with a $500 or $1,000 budget to try it out and see how it performs for them. Best of all, we have insurance advertising expertise. From the very first ad you run, the knowledge base and artificial intelligence built into the ValChoice platform is all available to your team.
The Compelling Value Proposition
The founding principles of ValChoice are as a data analytics company that communicates the value, claims handling and service of insurance companies. This is the differentiation insurance companies and agents need to both brand the company and create trust with consumers. For consumers, this is the information value shoppers need and want.
Value shoppers comprise the largest segment of buyers in most industries. However, many in the insurance industry has convinced themselves that there are few value shoppers for their product. Not true. Value shoppers don’t become price shoppers just because it’s insurance.
ValChoice tools enable your team to provide the information your best customers and prospects want. They want to know the value of what you offer. For more information click this link and learn more about our tools for insurance agents.
Will your company become the next big winner?
Easy, effective advertising is a major opportunity for almost every high-quality insurance company and agent representing these companies. Don’t stand by while GEICO and Progressive use their advertising budgets to grow their business at the expense of others. Contact ValChoice now to find out how your team can compete more effectively, find better prospects and grow your business faster.
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