Digital Marketing A Marketing Strategy that will produce growth in Independent Insurance Agencies “ Good Morning/Afternoon/Evening. First, I’d like to thank you for setting aside time to hear how we can help Independent agencies representing our brand, become more profitable. In this presentation, I want to review the importance of marketing to Generation “Connected” or as most refer to the group as Millenials. I also want to explain the benefits of Digital marketing, and the profitability the brand will see from this investment.”- Namibia Jones

Millennial purchasing power “An article in Forbes explains that in 2015 there are eighty million millennials in America alone! And they represent about a fourth of of the entire population, with 200 billion dollars in buying power” This market of people are a lucrative group to market towards and sell to. Not doing so leaves our Independent agencies vulnerable to losing good business. Millennial purchasing power

Target marketing for millenials “Millenials don’t respond to brand value” Or “Millenials associate anything with the title “Agent” as more work and more expensive.” These statements are often used when businesses fail to learn a target market in which they want to solicit business towards. With the correct approach, an agency can profit from the business that “Generation connected” has to offer. Target marketing for millenials

Types of agency marketing Effective Marketing Ineffective Marketing Social Media networking Online quoting systems Advertisements in the online community Cold calling Direct Mailers Dependence on face to face appointments The ineffective ways of marketing have proven ineffective when making sales to this generation. Millenials do respond to brand value, If they are marketed to the right way. “62% of millenials say that If a brand engages with them on social networks, they are more likely to become a loyal customer.” In addition, 60% said that they are often or always loyal to brands that they currently purchase.  Direct mailings and cold calls are perceived as antiquated and careless. It is now bad business to NOT prepare agencies representing our brand, to sell to such a large group with powerful purchasing power. Types of agency marketing

Millenials value relationships Milllenials value face to face relationships with Insurance professionals. The means of gaining their attention to sell value, build trust and save money is built through reaching them where they spend the most time, Online. The sooner our agencies can build a relationship and deep connection with millennials, the better because they will continue to purchase from us as mature adults. Millenials value relationships

Results of digital marketing in agency profitability Kevin Geraghty, author of Marketing Analytics in Online Social Spaces, explains the results of an Independent agency using social media to market to customers. “We estimated that we could command a 7 percent average premium in the marketplace and up to 30 percent for customer segments with clear preference for the GMAC brand. In an industry that runs an underwriting profit margin of around 5 percent, a premium of 7 percent is a key competitive advantage” The use of social media for marketing purposes, while making themselves accessible through online tools gave the GMAC brand a competitive edge. Results of digital marketing in agency profitability

THE PAST AND THE FUTURE Many of our agencies are managed by mature and experienced agency principles. Because of this, Independent agencies may be resistant about updating marketing strategies. It is the distribution department’s responsibility to sell this opportunity as an option and a lucrative opportunity for all Independent Agencies.

The costs of marketing should be derived from the underwriting profitability of the company. If the underwriting profitability is favorable, we can locate resources to support this initiative. If not, we can look for a way to involve the agency folio to share the price of marketing packages. The costs

Profitability benefits through marketing online Minimal resources required Increase brand recognition Increase Profits for Agencies There are more positive benefits outweigh the negative benefits that can affect the efforts of marketing to the millennial generation. Thank you for your time.