On the surface, all insurance agents appear to be equal. Sure, they may represent different companies, but the general perception is that the agents themselves are interchangeable. Starting out with a bland image and with so much competition, how can an agent stand out from the pack?
Niche marketing is a great way for an agent to differentiate himself or herself from the pack of like-minded, one-size-fits-all insurance agents. It gives the agent a unique opportunity to state what he or she is all about, then subsequently build an entire business around that stance. Most insurance agents try to be all things to all people.
While that’s a noble approach, there’s more than enough of that type of agent to go around. What there are not a lot of, though, are agents who specialize in a specific area of insurance, who are recognized authorities in a niche that is currently being underserved by the market. That’s the key part of this equation, and it’s why niche marketing is a viable option for an agent who wants to raise his or her profile.
Having a specialized niche is a great way to stand out in the community. It can also help to call attention to the plight of those who don’t have a voice. And the business ramifications are huge. People want to buy insurance from an agent that truly understands them. Those agents who prove their worth within a given niche can expect significant referral business, as those who are satisfied with their agent will be only too happy to help others.
A successful foray into niche marketing can also have a trickle-down effect onto the agency and backing insurance company.
For example, an agent who specializes in dealing with newly-minted empty nesters may be able to sell additional life and car insurance policies, due to the life situation in which the niche finds itself. Those additional policies will boost the bottom line of everyone associated with the agent, making the arrangement a win-win for all parties involved. If you want to break out of the pack and develop a new identity for your insurance business, consider finding your own niche and basing your business around that segment of the market. You may find that new opportunities - and a larger customer base - are just around the corner.
For more information about the American Agents Alliance, a national insurance association for independent insurance agents, or if you’d like to become a member, please visit us.