Agent Branding & Marketing

Agent Branding & Marketing - The Insurance Agency Marketing Experts

customer segmentation

Targeted Marketing: How Customer Segmentation Can Help You Grow Your Insurance Agency

Targeted marketing is an efficient way to grow an insurance agency. It’s crucial for agencies to offer insurance services to the right people. When doing marketing, an insurance agency should target the potential clients who can be interested in insurance services.

It’s incredibly important for insurance agents to identify the target audience for their business in the right way. It makes a lot of sense to divide insurance agency’s customer base into different groups.

In this blog, we are going to talk about the importance of targeted marketing and give you insights into the main aspects of customer segmentation. On top of that, we would like to share the tips that insurance agents need to follow to do targeted marketing in the best possible way.

So, let’s get started.

The Importance of Using Targeted Marketing for Insurance Agency

Targeted marketing is used on popular social media platforms such as Facebook, Instagram, Twitter, LinkedIn and others. If you use Pay per Click marketing solutions for insurance agency, then you have to determine the target audience for your PPC campaigns. After that, you have to inform your target audience about your insurance agency and its services.

And of course, customer segmentation is incredibly important for email marketing. It’s necessary to send an email to those people, who are interested in purchasing insurance services. That’s why the base of emails has to be segmented according to an insurance agency’s marketing needs.    

When doing targeted marketing for an insurance agency, it’s necessary to take into consideration such important factors as age, income, location and insurance needs.

Doing customer segmentation of this type helps insurance agents target their potential and existing customers successfully and get the most out of their marketing efforts. In this case, an insurance agency gets more customers as well as sales and the return on investment of marketing services increases significantly.

On the other hand, insurance agents will waste their time and money if they target wrong people. And of course, it’s necessary to prevent these kinds of things from happening. That’s why it’s so important for insurance agents to focus on targeted marketing.   

Segmenting Insurance Agency’s Customer Base by Age

When marketing an insurance agency, it’s necessary to take into consideration the age of prospects. First of all, insurance agents have to find out how old their customers are. After that, they have to market their insurance services among people of the right age.

The recent statistics shows that the average age of people, who buy life insurance, is 18 – 34 years. The reality is, people of this age group are starting families. They care of their family members and buy life insurance for them. More than 64% of people, who buy insurance services, are married according to the statistics. So, it would be great to market life insurance services among young people of this age group.

It’s also important to note that age is among the most significant factors in determining the target audience for car insurance. It’s interesting to know that teens as well as people of young age find it too expensive to buy car insurance.                 

Segmenting Insurance Agency’s Customer Base by Income

Not everyone can afford buying insurance services. All of this means that it’s very important to segment insurance agency’s client base by income. Insurance agents should offer different types of insurance services to their customers.  

Low income families may find it too expensive to buy insurance services. So, it would be better to offer affordable insurance options to such people. On the other hand, high income families can consider buying more expensive insurance offerings.

The recent statistics show that more than 70% of people, who buy insurance services, are full-time employees. The statistics also say that over 75% of people, who buy insurance services, own a house or other types of properties.    

Segmenting Insurance Agency’s Customer Base by Location

And of course, location of an insurance agency plays a very important role in its marketing. Insurance companies run business locally and, therefore, offer its services in certain geographical areas only. That’s the reason why insurance services have to be marketed locally as well.

Local marketing is an effective tool and it works well for insurance agencies. It’s recommended to use local SEO and other types of local marketing solutions (such as Facebook marketing, Instagram marketing and others) for insurance agencies.  

On the other hand, it makes no sense to promote insurance services in the areas where an agency doesn’t operate. In this case, promotion will be not effective. For example, it’s a good idea to use search engine optimization for marketing an insurance agency. However, it would be great to optimize an insurance company’s site for local search terms not for general ones.     

Segmenting Insurance Agency’s Customer Base by Insurance Needs

Each customer is unique and needs the certain type of insurance services. Some clients need life insurance. There are also people, who are interested in buying car insurance. That means that every client has unique insurance needs. So, an insurance agency must have a unique marketing approach for each of its clients. That’s why insurance agencies have to market their services in different ways. So, segmenting insurance agency’s customer base by insurance needs help agent develop effective marketing strategies that work best for their customers.

Trust Your Insurance Agency’s Marketing Needs to Real Professionals

It’s fair to say that the success of an insurance agency depends a lot on marketing. You’ll be able to grow your insurance agency successfully only if you market your services in an efficient way. So, marketing means a lot for selling insurance services.  

However, marketing an insurance agency is hard and time-consuming work. It’s difficult to be good at marketing and insurance at the same time. It will take you some time to master the necessary marketing skills. Also, insurance agents have to spend too much time to market their services regularly. So, it would be better to take advantage of professional marketing services and focus on running insurance business.

Do you need help with insurance agency’s marketing? Our professionals are always looking forward to assisting insurance agencies with any of their marketing needs. Contact us today to get a free service quote!

Skip to content