Foundations in Marketing for the Digital Age

Do what you do for the right reason and ask for referrals

I always get my continuing education while attending PIA events. I can collect several credits over a single day, while taking advantage of the excellent networking and trade shows on which PIA has built a reputation in the northeast. And, importantly, I always learn valuable information during the classes. One of the most recent events I attended was PIANY’s Long Island RAP in Woodbury, Long Island, which was conveniently close to my home, but also a great show. One of the classes I attended was taught by John Fear, CPIA, CISR. He gave some great advice about social media, the errors-and-omissions perils an agency should be careful about and also what agencies can do to maximize the use of social media.

Anyone who has ever taken an E&O course knows you can walk out of it so frightened of the potential problems that you may not want to sell insurance anymore. But, this class was great because John presented great suggestions about what a producer can do, in addition to what he or she can’t. One of the many great suggestions John discussed was making sure you get permission to connect with your clients on their Facebook or Twitter accounts (and, of course, getting their social-media information along with their email). One of the scenarios he shared was downright exciting: He suggested that an agency give a $5 donation for every policy they write to a local charity that the agency supports.

Imagine this scenario: John Smith comes into the office for an auto policy because his new dog is a Great Dane and he needs a bigger car and he knows ABC Agency loves animals. ABC Agency makes sure to get a picture of John and his puppy, and asks if they can post it on the agency’s Facebook page. ABC’s Facebook post with the picture of John and Fido said something like this: “ABC congratulates John and Fido on their new Subaru. We are happy to share that ABC donates $5 to our local shelter for every new auto policy we write.” And, they include a hashtag and tag the shelter to which they donate.

Now, of course, John loves his puppy and he is happy with his service from ABC Agency so, when the agency posts the photo and tags John, he “likes” it. All of John’s Facebook friends now know that ABC Agency is a community and pet friendly agency and they see John has given the agency a thumbs up.

But it gets better—because the shelter and all of its supporters on Facebook also will see this post, since ABC agency tagged it and is making the donation. All of John’s friends have an implicit referral. But, all of the shelter’s friends do, too.

This practice makes great use of a new medium, but the marketing concepts on which it is based are older than me. The first is that the primary reason people use professional independent agents in the first place. We are local; we participate in our communities and for that reason, people know us and they have confidence when they work with us. When clients work with us they have made a decision not to work with someone halfway across the country, who doesn’t understand the unique needs of their communities. They know we care. I would argue that this age-old foundational relationship is even more important nowadays than it was before the millennials became a purchasing force.

However, as John warned us, with new media we have new challenges, too. How many of us get calls on our cell phones and simply disregard them—we don’t even pick them up—because the number calling is unfamiliar? I know I do. If I do pick up a call because it’s a local number, but then realize the call is automated, I hang up automatically. We are growing more jaded about the communication we see, and with good reason. Media that makes communication more simple, makes scamming more simple, and so it goes.

In the past, I was successful using telemarketers at my agency. I was able to pick up many good accounts using them, but with the current environment, I’m not sure telemarketing is going to work. So how do we pick up accounts? Cold calls aren’t my thing. They require a certain intestinal fortitude that most people, including myself, don’t have. I’ve always needed a referral. But having the door open a little, I was in! Telemarketing may be a thing of the past. We need to reinvent our communication accounts.

But, we can still rely on the foundational concept that differentiates us as professional independent agents: Because we are active in our communities. We can still participate: in chambers of commerce; with local charities; at our houses of worship. We just have to do it for the right reasons. We can’t join to sell, we have to join because it’s the right thing to do. That genuine concern for our communities and our neighbors is what makes us better.

I’ve told this story before, but it remains true: I was recommended by a friend to the first organization I ever joined. He was an attorney, and he told me: “People know what you do. Don’t join the organization to sell insurance, because if you do, you won’t be successful. Join for the organization because you believe in its mission.” He was right. Eventually, people on the board came to me and they became clients and they referred me to clients. This soft sell is effective. If you join a group and proceed with the hard sell, you will lose out.

Nowadays, I know that many firms require their sales and marketing people employees to be on social media and to take part in civic and community activities. That’s great! But, the old tenents of marketing remain the same.

Likewise with advertising: Investing in advertising is a smart thing. Doing it on social media, and in community forums is far less expensive than the old days, when we advertised in print and the Yellow Pages. But, the same rules apply: When you advertise, you can’t expect direct leads from a single post or run. Ads can’t be measured by direct leads, they serve to build a reputation and the more impressions you make, the more success you will have—eventually.

Social media is great because it taps into the most time-tested and effective form of marketing: personal referrals. Every thumbs up; like; repost; and retweet is an endorsement that can get you in front of countless leads. This is a modern application of an age-old concept: Asking for referrals is the most effective and affordable way to market yourself.

Consider, for example, supplemental insurance for Medicare. This product is being pushed to many with sketchy sales pitches over the phone. People smartly are suspicious of these calls. But, if an agency has an expert who knows health coverages, it could be a great product to round out their book. You wouldn’t expect to sell this kind of coverage over social media (although Facebook is by far the most popular social media site for baby boomers, and they are 19 percent more likely to share content compared to any other generation, according to Digital Trends). But, your clients have parents and grandparents who may need this. Having this expertise may help you stand out as a specialist. If you know your product; know the competition; and you establish yourself as a trusted community member, who cares about your clients because you are local, you may get referrals from social media. Conversely, parents and grandparents who may consult you on this coverage can lead you to children and grandchildren who will become future clients.

… all you have to do is ask for referrals. This is the best way to get leads! Never fail to ask to be recommended. In person or on the internet: Wherever you go, do what you do for the right reason and ask for referrals.