Starting a new business is always a challenge, but it can be especially difficult when it comes to marketing. One of the best ways to get started is by writing a marketing plan.
As the owner of a commercial insurance business, you know that having a good marketing plan is essential to your success. After all, without customers, your business will not survive.
But what goes into a good marketing plan? Below, we will go over some of the key components of a successful marketing plan for a commercial insurance business.
Key Components of a Commercial Insurance Marketing Plan
A great marketing plan has eleven sections as follows:
- Executive Summary
- Target Market Segments
- Unique Selling Proposition (USP)
- Pricing and Positioning Strategy
- Distribution Strategy
- Marketing Materials
- Promotions Strategy
- Digital Marketing Plan
- Conversion, Referral, and Retention Strategy
- Financial Projections
We provide more detail for each of these key components below.
The executive summary is a brief overview of your entire marketing plan. It should include your overview information from each of the other sections, such as your target market, unique selling proposition, key promotions strategies, and financial projections.
Target Market Segments
When it comes to marketing a commercial insurance company, it is important to identify your target market segments. Who are your most likely customers? Consider factors such as age, gender, income, location, and lifestyle when determining your target market segments.
For example, the customers of a commercial insurance business may include small business owners, self-employed individuals, and commercial property owners.
Break down each of these segments even further by considering their needs, wants, and pain points. For example, the needs of the customers of a commercial insurance business may include protection against property damage, liability, and workers’ compensation.
By understanding your target market segments, you will be better equipped to create marketing messages that resonate with them.
Unique Selling Proposition
Your unique selling proposition (USP) is what sets your commercial insurance company apart from other commercial insurance businesses. What do you offer that nobody else does?
For example, your USP could be that you offer the lowest rates, the most comprehensive coverage, or the best customer service.
No matter what your USP is, make sure it is clear in your marketing materials. Your clients should be able to see immediately what makes you different from the other business in their area.
Pricing and Positioning Strategy
Your pricing and positioning strategy will be determined by your target market segments and your unique selling proposition.
For example, if you are targeting small business owners, you may want to position yourself as the most affordable option. Or, if you are targeting commercial property owners, you may want to position yourself as the company with the best coverage.
No matter what your positioning strategy is, make sure your pricing strategy is competitive. Consider conducting a market analysis to see what other commercial insurance businesses with which you compete are charging for similar offerings.
Your distribution strategy will determine how your commercial insurance products and services get to your target market. There are a few different options for distributing commercial insurance products, including:
- Direct to consumer
- Through an insurance broker
- Through a third-party website
Each of these options has its own set of pros and cons. For example, selling directly to consumers may be more efficient, but working with an insurance broker could give you access to a larger network of potential customers.
Your distribution strategy documents how customers will buy from you. For example, will they buy directly from you in-person? Will they buy online? Will they purchase from your partners, distributors, etc.
Providing offers through your business is a great way to entice customers to make a purchase. For a commercial insurance company, some examples of offers could include:
- A free insurance quote
- A discount for switching to your company
- A bundled insurance package
Your offer should be relevant to your target market segments and your overall marketing goals. For example, if you are trying to increase brand awareness, you may want to offer a free insurance quote. But, if you are trying to increase market share, you may want to offer a discount for switching to your company.
Be sure to include any relevant details about your offers in your marketing materials. For example, if you are offering a discount, be sure to specify the amount of the discount and how customers can redeem it.
Your marketing materials should be based on your unique selling proposition and target market segments. They should be designed to grab attention and generate interest in your business.
Some of the marketing materials you might want to create include product brochures, flyers, and website banners. You will also want to make sure your branding is strong and consistent across all of your marketing materials.
Your promotions strategy includes the methods you will use to attract new customers. It should be designed to generate excitement and encourage customers to try your business.
Commercial insurance businesses should consider the following promotional strategies:
- Run a contest or giveaway
- Sponsor a charity event
- Give away free samples of your products or services
- Hold a seminar or workshop
- Create a social media campaign
- Make a video about your business
Digital Marketing Plan
In today’s digital age, it’s important to have a solid digital marketing plan. This will help you reach a wider audience and drive more traffic to your business.
Some of the digital marketing tactics you might want to use include search engine optimization (SEO), pay-per-click advertising, social media marketing, and email marketing. You will also want to make sure your website is mobile-friendly and easy to navigate.
Commercial insurance businesses should consider the following digital marketing strategies:
- Search engine optimization
- Pay-per-click advertising
- Social media marketing
- Email marketing
- Website design and development
- Mobile marketing
- Online directory listings
Conversion, Referral, and Retention Strategy
Your conversion, referral, and retention strategy should be designed to keep customers coming back. Consider offering loyalty rewards, discounts for referrals, and other incentives to encourage customers to continue using your business.
You will also want to make sure your customer service is top-notch. Respond quickly to any complaints or concerns, and always go above and beyond to exceed customer expectations.
Commercial insurance businesses should consider the following conversion, referral and retention strategies:
- Offer loyalty rewards
- Offer discounts for referrals
- Provide exceptional customer service
- Respond quickly to complaints and concerns
- Go above and beyond to exceed customer expectations
Last but not least, you will need to create financial projections for your business. This will help you track your progress and ensure you are on track to meet your goals.
The key information to include in these financial projections are your monthly marketing expenditures and expected sales. Be sure to update your projections on a regular basis to reflect any changes in your business.
Financial projections for a startup commercial insurance business may include:
Gross Margin Analysis
Cost of Goods Sold
Net Profit or Loss
There are a number of things to consider when creating a marketing plan for your commercial insurance business.
By following these steps, you can develop a quality marketing plan that will help you successfully launch and grow your commercial insurance business. Just remember to be creative, think outside the box, and always put your customers first. With a little hard work and dedication, you will be well on your way to success!