Target marketing makes good dollars and sense 

Concentrating your sales efforts on the market or markets that bring you the most satisfaction---professionally and monetarily---does make a lot of sense. Is your agency currently in shape to do it?  We have a few thoughts that will help you determine whether or not you are, and what you can do to get in tip-top shape.

You need to find market niches 

If your agency is located in a small community, you may say the whole town is your market. Yet there are niches that you can carve out and own.  For example, your target might be to write the coverages on top 100 valued homes in town, or the top 25 businesses. 

The better risks niche 

Even in a small town there is no such thing as total homogeneity. Certain risks are better risks.  Certain risks are more profitable.  Certain risks have more growth potential. 

The next generation of buyers niche 

We know some agents who have focused marketing communications efforts on building their name and reputation with the middle school and high school population in town. One way they do it is by advertising regularly within  sporting, music, and local library events, and in student yearbooks and newspapers.  Another way: sponsorship of scholarships, recognition awards at graduations. There is two-way marketing benefit.  Young people have an influence with their parents too! 

The special product advantage niche

 Do you represent a company that excels in a personal or business product area?  Does it give you a competitive advantage?  Develop your prospect list and exploit the advantage while it lasts! 

Start with a customer inventory 

It makes sense to start niche-building by identifying the potential for account building within your own clientele. Do you know who and what you are writing right now? What types of risks generate the most income?  Which are most profitable because they are easy to service, have a low claims incidence, give you referrals, etc.? Who are prospects for personal and business upgrades, round outs? 

If you sell life insurance, who are prime candidates because of their family or business situations? 

Have you sorted your customers by A, B, C and Y categories (Y being “why are we still insuring them”)?  What B’s could you move to A’s?  What C’s could you move to B’s?  How can you make sure that each category is getting the right share of your time? Have you done a neighborhood and business category customer survey?  Do you know from what areas of town your business is coming from?  You should know. 

The best customers-best prospects niche 

Target market for the same types of individuals, families and businesses that match your A customers.  Are they located in the same neighborhoods or business categories as your existing A’s?  How can you reach them? 

Six Step Approach for developing new target markets

 1. Ask your companies, “What are you looking for? What are your specialities?” 

2. Analyze your competitors. What is their strength? What are they missing that you can offer? 

3. Constantly expand your knowledge about markets and the marketplace. 

4. Build your relationship marketing efforts with your own customer base. 

5. Develop a formal prospecting system that includes onstant prospecting activity. Note: If you don’t have a prospect list that you are working consistently, then you aren’t really in sales and selling shape!

 6. Always account sell a new customer.  After you make the first sale, figure outwhat the next sale is and prepare to make it! 

Three criteria for successful target marketing 

 Use these critieria:  (1) Have a special program (a product or service) available for use;  (2) Be sure there is a substantial number of prospects that can use the special program; (3) Be sure the target market will generate a minimum account commission per sale that is profitable for your agency.