Target Marketing became a buzz word in the 90’s, but it still relevant today. Target marketing, also known as Niche Marketing, has 3 important components: strength and appetite of your carrier, experience and strength of your producer force, and the marketplace.
The first component in Target Marketing is carrier(s) appetite. You need the carrier to be specific if it is a target class(which they may not, in realty, write a lot of due to pricing), or if they have actually been writing it. You also want to find out if the underwriter has any particular expertise in the area you are targeting. Does the carrier have local underwriters with knowledge in your target area?
The second component involves the producer. You want the producer to be knowledgeable in the target market area. If they are not an expert in that area, they should try and educate themselves. The client will appreciate and recognize that they are knowledgeable and more easily put their trust in the producer.
The third component is to make sure that you have a marketplace. You need to make sure that you have a good number of prospects/future clients that are in your geographical area. You want to keep your geographical area somewhat small, but still have it make sense for your area. If you are in a major metropolitan area, your geographical area will be much smaller, maybe a 5-10 mile radius. If you are a rural or small city agent, then you might have to expand your area up to 50 or 60 miles to find enough clientele. This is important for your convenience, as well as the client. You want the client to feel they can reach out to you as their local agent.
What have you done in a Target Marketing campaign that has worked well for you? Leave a comment and let’s create a discussion.
Dawn Wright- Commercial Lines Specialist VIAA