2023 has been an uncertain year, bringing major challenges for the insurance industry.
Between the global health crisis, extreme weather events, and unexpected economic shifts, insurance companies have really taken a hit.
Now, insurers aren’t just fighting to beat out competitors — they’re also trying to stay afloat.
And a lot of your success depends on your local insurance agents.
But if their heads aren’t in the game, they won’t invest their time and resources in local marketing.
And as a result, your insurance marketing outcomes and revenue will dip.
Now, there’s something you should know…
Insurance agents are actually less likely to participate in marketing than affiliates in other industries.
We surveyed 2,531 insurance agents and analyzed 203,686 data points to understand why insurance agents have lower marketing motivation than their peers in other verticals. Get the data-driven insights you need to encourage your agents to execute truly inspired campaigns that drive results.
Read the full State of Local Insurance Marketing report to get all the insights, or continue reading for a peek into some of the stats.
Insurance Agents Have Low Program Satisfaction
The data shows that only 33% of insurance agents are satisfied with their marketing programs. In other industries, this satisfaction rating is much higher at 51%.
So, what gives? Why are these agents so unhappy with their marketing programs?
Here are a few of the key factors:
- Poor ease of use: Over half of insurance agents experience some level of difficulty using and understanding their marketing programs. If your program is too difficult to navigate, your agents won’t dedicate the time and effort to figure it out — they’ll just stop marketing.
- Antiquated programs: Many brands are pulling back program tactics and aren’t offering effective channels in their place. And with so many agents retiring, younger agents are left with antiquated programs.
- Unmet program needs: Your agents are asking for program features you may not offer — namely, fund matching. What’s important to them is going to be what drives the most revenue for your brand.
To learn how to boost agent satisfaction, dive into the full report.
Insurance Agents Don’t Use Co-Op Funds
Insurance agents don’t have the best relationship with co-op funds.
Only 31% of them take advantage of these dollars compared to 57% of partners in other industries. That means 69% of your agents leave marketing funds on the table.
But why do insurance agents neglect their co-op funds?
First, the majority of agents experience challenges accessing and using their funds. Again, if your program creates friction, your agents will feel discouraged from investing in your marketing. In other words, if accessing co-op dollars is too difficult, they’ll put other priorities first.
Another reason agents don’t use marketing funds is that they don’t see the value of these dollars. If the amount of time or effort it takes to access co-op funds outweighs the benefits of using them, your agents won’t bother.
Read the full report to learn how to improve your co-op program and motivate spending.
Agents Gravitate Toward Traditional Tactics
The tactics your agents use determine your local marketing success. The data revealed that insurance agents’ top three most-used marketing tactics are email, direct mail, and purchased leads. Affiliates in other industries use organic social media, in-store signage, and paid social media the most.
So, what does this mean?
Insurance agents lean more on traditional tactics than digital channels.
That’s because the insurance industry is largely made up of agents who have been in the game for decades — which means they tend to be more comfortable with old-school tactics. Digital tactics pose more of a learning curve for them. However, you need both to really move the needle.
You can read the full report to learn how to get your agents to embrace digital marketing.
Activate Your Local Insurance Agents
Now that you know what obstacles prevent your insurance agents from marketing effectively, it’s time to streamline your processes.
For insights on how to improve your program and encourage agents to market, read the full State of Local Insurance Marketing.
You can also get monthly local marketing insights by subscribing to The State of Local Marketing newsletter.