REVOLUTION

ixntech

techsurance-marketing-revolution-ebook

THE

TECHSURANCE Marketing

REVOLUTION

Marketing Strategies Used by Top

Performing Insurance Agencies


EXECUTIVE SUMMARY

The slingshot in

the commoditized

insurance world

Today’s Insurance Shoppers

SHOP ONLINE

71% of consumers shopping

for insurance used the

Internet to obtain a quote.

Consumers are shopping online for insurance in record

numbers and obtaining multiple quotes, according to a

2015 comScore report.

This isn’t great news for smaller independents, or even

captive agents that are competing with corporate

call centers and what seems like endless advertising

campaigns that push the “get what’s cheapest” message.

But therein lies your slingshot: in our world of price

wars, the giants can’t always fit through the goodcustomer-service

door quickly enough, and many

give up too easily.

2-3 QUOTES

62% of online insurance

shoppers obtained two or

three quotes.

LOWER PRICE

66% of online insurance

shoppers were looking for

a lower price.

This new research from ITC and Velocify sheds light

on how top performing insurance agencies, regardless

of size or type, use different marketing strategies and

technologies to compete and grow in a commoditized

insurance world.

The Techsurance Marketing Revolution | Page 2


ABOUT THE AUTHOR

Comprehensive

survey of 1,000+

insurance agencies

More than 1,000 insurance agencies completed a

comprehensive, 20-question survey to better understand

the state of technology and its effectiveness in the

insurance market. The agencies in our study included

direct-to-consumer carriers, insurance carriers that use

captive agents for selling, and independent agencies, who

generally sell products from many carriers.

A previous study by ITC and Velocify looked more broadly

at six top technologies commonly used among insurance

agencies and the impact of those technologies on revenue

and growth. This report focuses specifically on marketing

automation technologies, which enable agencies to

market and nurture prospects via outbound and drip email

campaigns. More sophisticated marketing automation

solutions can track a prospect’s digital buying behavior and

signal when they may be ready for a sales call.

The Techsurance Marketing Revolution | Page 3


KEY FINDINGS

High-growth agencies

invest in lead gen and

marketing automation

Insurance agencies with higher marketing spend

are more likely to experience significant revenue

growth, regardless of agency type or size.

Agencies that invest in paid marketing channels

have a tendency to grow faster than agencies that

rely heavily on their existing book of business.

Agencies that sell a higher percentage of

non-standard auto and life insurance policies, tend

to spend more on marketing than those selling a

higher percentage of commercial insurance policies.

Agencies that generate more leads are more likely

to use marketing automation to manage those leads.

Marketing automation users sell more policies per

producer and more policies per household, on average.

The Techsurance Marketing Revolution | Page 4


MARKETING STRATEGIES

Spend money to

make money

How Marketing Spend Impacts

Revenue Growth

35.0%

In the insurance industry, revenue growth directly ties to

marketing spend, regardless of size or type of agency.

Agencies that spend less than 5% of their

revenue on marketing are almost three times

more likely to experience flat revenues than they

are to experience significant revenue growth

(more than 20% growth year-over-year).

On the other hand, agencies that spend 15% or

more of their revenue on marketing are more

likely to have significant growth than they are to

have flat revenues.

Percentage of agencies

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

< 5% 5-10% 11-15% >15%

Percentage of revenue spent on marketing

Flat revenue (-5% to +5% change)

Significant revenue increase (more than 20%)

The Techsurance Marketing Revolution | Page 5


MARKETING STRATEGIES

Find new clients with

the right marketing mix

How Marketing Budget Impacts

Marketing Mix

50.0%

The most successful insurance agencies don’t rely on their

existing book of business alone. In order to expand, these

agencies are investing in different ways to find new clients.

Lower Marketing Spend

Agencies that spend less on marketing rely more heavily on

referrals and self-generated opportunities because those lead

sources have little to no costs associated with them. However,

these agencies don’t have control over their lead volume,

because they typically can’t pay more to generate more.

Greater Marketing Spend

Agencies with larger marketing budgets saw a higher

percentage of their prospects come from paid marketing

channels. This doesn’t necessarily mean that referrals and

self-gen decrease. In most cases, the total number of leads

increases. The top paid sources agencies invest in include:

Lead Providers

Traditional Media/Offline Advertising

Percentage of prospects

40.0%

30.0%

20.0%

10.0%

0.0%

< 5% 5-10% 11-15% >15%

Percentage of revenue spent on marketing

Lead Providers

Traditional Media/Offline Advertising

Direct Mail

Referrals

Self-Generated

Direct Mail

The Techsurance Marketing Revolution | Page 6


MARKETING STRATEGIES

Where marketing

spend has a

greater impact

Agencies that spend more than 15% of their revenue on

marketing tend to generate two times more revenue

from non-standard auto insurance and three times

more revenue from life insurance than they do from

commercial insurance.

Agencies selling more commercial insurance

typically sell more to other businesses and are

therefore more dependent on referrals and

self-generated opportunities, which don’t cost

as much to generate.

Agencies selling more non-standard auto and life

insurance policies usually face more competition

because they usually sell to consumers, so they

typically have to spend more to generate new

business.

Percentage of revenue from insurance types

Marketing Spend Across Insurance Types

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

< 5% 5-10% 11-15% >15%

Percentage of revenue spent on marketing

Non-Standard Auto

Life

Commercial

The Techsurance Marketing Revolution | Page 7


MARKETING AUTOMATION

Leverage technology to

manage and optimize

marketing spend

The first half of this report focused on marketing strategies

and lead gen programs that drive higher revenue growth.

As we shift focus to technology, we see a clear correlation

between the two.

The survey found that agencies that spend more on

marketing are more likely to use a marketing automation

solution. This is likely because agencies that spend more

on marketing programs need a better way to manage and

optimize their efforts. When lead volume grows to a point

where it becomes unmanageable, a marketing automation

system is essential for success.

Percentage of agencies using marketing automation

Marketing Automation Usage Compared

to Marketing Spend

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

< 5%

5-10%

11-15%

Percentage of revenue spent on marketing

>15%

The Techsurance Marketing Revolution | Page 8


MARKETING AUTOMATION

More policies

per household

Boosts in Policies Sold per Household

14.0%

Just by using a marketing automation solution, an

agency can sell 10% more policies per household.

12.0%

10.0%

Marketing automation is likely helping these agencies

more effectively cross-sell into their existing customer

base, enabling easy look ups on auto/no home, for

example. With this information, agencies can run email

campaigns to educate and nurture customers, staying

top of mind until the time is right for sales to reengage.

It’s also worth noting the impact of lead management,

which is the number one driver of policies sold per

household at 13%. The usage of both solutions ensures

agencies are nurturing customers to a buying stage

utilizing marketing automation, and then, leveraging

lead management to increase their effectiveness in

contacting, quoting, and selling additional policies to

their customer base.

8.0%

6.0%

4.0%

2.0%

0.0%

Lead

Mangement

CRM

Marketing

Automation

Agency

Management

Automated

Dialer

Comparitive

Rater

The Techsurance Marketing Revolution | Page 9


MARKETING AUTOMATION

More policies

per producer

Similarly, using a marketing automation solution, an

agency can sell almost 20% more policies per producer.

Marketing automation ensures agencies more effectively

nurture prospects and stay top of mind with X-Date

campaigns, holiday greetings, and more.

Boosts in Policies Sold per Producer

45.0%

40.0%

35.0%

30.0%

25.0%

Also worth noting, agencies using lead management

sold 43% more policies per producer, and automated

dialers had an equally impactful result. In the

competitive online lead marketplace, utilizing lead

management and dialing technology is essential to

compete and optimize marketing spend. These tools

ensure speed-to-contact within seconds on competitive

internet leads and productivity gains that offer a major

competitive advantage.

20.0%

15.0%

10.0%

5.0%

0.0%

Lead

Mangement

Automated

Dialer

Comparitive

Rater

Agency

Management

Marketing

Automation

CRM

According to a previous study, these three software

categories are also the most underutilized, suggesting

they offer agencies the greatest competitive advantage.

The Techsurance Marketing Revolution | Page 10


CAUTION!

There can be a

downside to higher

marketing spend

The more agencies spend on marketing, the lower

their average retention rate. So be careful not to focus

so heavily on attracting new clients that you neglect

existing clients.

There is a silver lining and an opportunity here,

however. If you invest heavily in marketing and focus on

retention, you have the greatest opportunity for growth.

Marketing automation can help you stay top of mind

with existing clients when it comes time for renewal or

to purchase additional insurance products.

Average retention rate

Falling Retention Rates

86.0%

85.0%

84.0%

83.0%

82.0%

81.0%

80.0%

< 5% 5-10% 11-15% >15%

Percentage of revenue spent on marketing

The Techsurance Marketing Revolution | Page 11


SUMMARY

Invest in marketing and technology,

and focus on retention for greatest

growth opportunity

In a commoditized insurance world, there is opportunity for agencies of all sizes to grow and thrive. Agencies that diversify their

marketing efforts to attract new prospects and that focus on retention and cross-sell have the greatest opportunity for growth.

Technology is essential to help you maintain good customer service at scale. Marketing automation tools can help you market and

nurture prospects and existing clients so they feel the love all year long, not just when it comes time to write a check.

Here are a few tactics you can leverage to stay top of mind, sell more policies, and get more out of your marketing investments:

Send birthday and holiday emails

Create campaigns to market to prospect and customer X-Dates

Encourage prospects and customers to follow you on social, and update your social pages with useful news and

information about insurance products and services

Utilize referral rewards programs

Run cross-sell campaigns - auto / no home, home / no life, etc.

B2B/B2C – convert your personal customers into commercial customers, and commercial

customers into personal customers

Run “We want you back!” campaigns for canceled or expired customers

The Techsurance Marketing Revolution | Page 12


Get Started Today!

Do you have the tools to meet the expectations of today’s insurance buyers?

Learn how smart sales technology can help you sell more policies and rise

above the competition.

Get Demo

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Insurance Technologies Corporation (ITC), founded in 1983, is a leading provider of marketing, rating and management software and services to the

insurance industry, including independent agents and insurance carriers. Headquartered in Carrollton, Texas, ITC helps its customers across the United

States grow their businesses and become more efficient through the philosophy of providing quality software and services. Currently, ITC serves more than

200 insurance companies and more than 6,000 agencies. For more information, visit GetITC.com or follow ITC on Twitter @InsTechCorp.

Velocify is a market-leading provider of cloud-based intelligent sales software, designed for high-velocity sales environments. Velocify helps sales teams

keep pace with the speed of opportunity and increase revenue by driving rapid lead response, increased selling discipline, improved productivity, and

actionable selling insights. The company has helped more than 1,500 companies across a variety of industries improve customer acquisition practices and

sales performance. Velocify was recently recognized as one of the fastest growing companies in North America by Deloitte and a Best Place to Work by the

Los Angeles Business Journal. For more information, please visit velocify.com or follow the company on Twitter @Velocify.

Call: 888.843.1777

Email: sales@velocify.com

Web: velocify.com

Blog: velocify.com/blog

VELOCIFY.COM

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