Internet Marketing – Long and Short Term Objectives

13thAug. × ’11

What Kind of Internet Marketing Should Your Insurance Agency Be Doing Right Now?

I’m going to vastly oversimplify the exercise of choosing internet marketing components by making these assumptions:

  • You know your insurance agency’s target customers, your key products, and your geographic marketing area;
  • You have decided upon which traditional marketing programs you will use -direct mail, print advertising and the like;
  • You have a budget for marketing and you know how much of that budget is available to you;
  • You also know which programs will be implemented in-house and which ones will be outsourced.

So it’s August already…and your insurance agency is coming up a little short on some sales commitments that could cost you some contingency income and maybe some other preferential treatment from one or more of your insurance companies.  Your problem is short term in nature and you need a short term fix.

For most agencies, the main internet marketing options are these:

  • Email marketing (in the short term, this would be confined to your current list)
  • Local Search Optimization
  • Organic Search Optimization
  • Social Media Marketing
  • Pay-Per-Click (or PPC)

On a relative basis, the costs for reach line up something like this:

Insurance Agency Internet Marketing Options - Costs

Since we assumed you know your insurance agency’s available marketing budget, you may be able to rule out an option or two at the outset.  But budget aside, each program has different lag-time to sales and each program has a different sales production curve as you move to and through program maturation.   The next illustration shows the different lag times as you move through implementation phases:

Insurance Agency Internet Marketing Comparison - Sales Lag Times

This should make your choices fairly easy.  In the short term, Local Search Optimization and Email Marketing are probably your best bet.*  If you don’t have a good email list, one that has been updated, then your option may winnow down to just Local search optimization.  But September is right around the corner and your insurance companies, if they haven’t already done so, are going to start talking to you about marketing plans and commitments for next year.  So it’s a good idea to also consider the longer term sales potential of some of these programs.  Relative to each other, that potential over time looks like this:

Insurance Agency Internet Marketing - Long Term Sales Potential Comparison

When you have the luxury of time, return on investment (ROI) should enter into your decision criteria.  The chart below shows ROI ranges for both social media marketing and SEO.  There is some risk associated with each tactic for multiple reasons (I may blog about that later, if someone asks me to).  But the range of risk is something like good-to-great as opposed to horrible-to-good.  Risks associated with SEO and social media marketing are something most of us can accept and still sleep at night.  PPC would appear to be another matter.   PPC can produce acceptable ROI, but because insurance keywords are so expensive, pay-per-click ROI is unacceptably low for many insurance products.

Insurance agency internet marketing comparison - ROI

*although as your short term gets shorter your only option may be to purchase leads

 

 

 

 

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