Signs

I’m often asked how I come up with ideas to write my column. Many ideas come from friends and fellow agents who share stories in casual conversation, or an agent will reach out to me because they have an idea that they think others would be interested in reading about. As the time between each article passes, I make notes on items and issues that strike me. I keep them in a file, and when it’s time to write, I review the thoughts I’ve collected and put them to paper. My notes now comprise nearly 200 pages.

This past month, my wife and I spent several weeks in Florida. As I reviewed my recent notes, a common theme emerged: signs. It’s obvious that one sign we sought through February and March was a sign of spring. That sign has been particularly elusive this year, but the robins here in my yard in the Northeast and our return from Florida are sure signs of the inevitable return to good weather.

Back to my Florida trip: We took our time and drove down Interstate 95 this year. As we made our way through Florida, the billboards became more frequent and some of them were pretty attention grab- bing. One memorable example was from an air conditioning company. This sign had giant words that said: “Your wife is hot” followed by the phone number and address of the company on it. I thought it was pretty clever and it got me thinking about advertising at my own agency.

We professional independent agents have an uphill battle when it comes to advertising. Certain direct writers have huge budgets and we (and our insureds) are bombarded by ads that make promises of cheap coverage. It’s easy to see these, get frustrated and complain about them, but it would be more effective for us to spend our time developing our own advertising and marketing strategies. Over the years, I’ve found most insurance advertising is boring and institutional. Our industry is subject to heavy advertising regulation and fierce competition, and so it requires creativity to work within these circumstances. What we have going for us, though, are a few benefits. First and foremost, we know our customers. Perhaps not as intimately as the air conditioning company implies, but we live in the same regions and towns as our families, friends and neighbors and we understand their unique situations. This is a benefit the direct writers envy and our carrier partners recognize. It’s a primary reason they chose the independent distribution system to reach our clients.

Another benefit professional independent agents have is our creativity. We are natural sales and marketing types. And, we know how to reach customers. Many years ago, I worked with a local advertising agency (which also happened to be a client) to develop a cartoon campaign. One ad in particular sticks in my mind because I liked it a lot. It had a person with his hair standing on end—each clump of hair signified auto, homeowners, long-term care. He had the look of a madman and the caption read: “Is this how you feel about insurance or the agent that represents you? If it does, contact Ruchman Associates.”

Another ad I ran was a similar caricature depicting a golfer standing and waiting to tee off. It said: “The only thing that will drop at 55 and older will be your insurance program. Looking for drivers over the age of 55.” These ads were pretty effective and in fact, I won awards for the advertising program. But these days, with expenses at insurance offices and the cost of buying the media, many of us just don’t have the money it requires to hire an advertising agency. As time went by, I began using PIA’s Creative Services and found them to be just as creative and just as professional (if not better) than the high-priced advertising agency I had hired in previous decades. PIA also has pre- packaged ads, featuring the main-street agent theme, which can be individualized and used in various media.

It’s easy to let all the other things we must do to run our business distract us from the importance of developing and actually implementing a strategic advertising and marketing plan. But it’s important to establish an image and brand your business. While we can’t fight the direct writers that spend half a billion dollars a year to inundate us with animated lizards, we can be creative. And importantly, we can think more locally than direct writers. We don’t have to be boring to look professional. In fact, we need to be creative to stand out. We can use guerilla-style marketing and we can remind our neighbors that we are here; that they know us; and they trust us.

In my early years, I sent every one of my insureds a birthday card—even the young, future drivers in the household received one so that they would remember me when they got their own coverage. I used PIA’s newsletters and had Creative Services send them to all of my clients every quarter. Inexpensive, easy reminders that helped me retain clients and build future business. (I also had Creative Services develop my letterhead and agency brochures, which made me look legitimate and professional as I reached out to commercial clients too.)

There are lots of businesses that use creative ways to reach customers. But, the simplest and most effective outreach is often a sign on your building that reminds your community that you are there—and that’s something 800-carriers don’t have.

Although some signs, while attention- grabbing, may send the wrong message. Since my return from Florida, I was driving in Long Island past a series of body shops. One of them had an electronic sign that said “deductible discount.” Now, I don’t hand out awards, but this business deserves an award for chutzpah. It may be inadvertent, but I’m pretty sure it’s against the law for a body shop to cover a deductible. The idea may be creative, but that doesn’t make it legal. This same business also advertises that it “represents all insurance companies for damage appraisals.” How can a business get away with this? Are adjusters blind when they walk in or are they just plain stupid? I know that eventually unethical and illegal practices will catch up with this business.

I saw many, many billboards on my Florida trip. Certain attorneys seemed shameless in their brash outreach and of course, they piqued my special sense of humor. In one case, I saw two billboards, side by side: The first showcasing a prominent slip-and-fall injury lawyer and next to it an ad for “1-800 vasectomy.” I couldn’t help smile as I thought, what do these two have in common?[IA]