Can Insurance agents Really Thrive In A Down Economy? The answer just may surprise you.
I was on the doing a paid phone consultation with one of my insurance agent clients the other day and we were talking about his insurance marketing when he told me- I always gain market share during a downturn in the economy.
I know, I know, go ahead and close your mouth before a fly goes in it. Does this guy have a magical insurance marketing machine that gives him the power to grow his insurance agency regardless of the economy? The answer is yes, but that is not what I want to talk to you about today.
I want to talk with you about this very important TRUTH. This guy has it right. Because A recession is not a time to panic, it is a time to advance your business.
If you want To use insurance marketing to Recession Proof Your Insurance book then the very first and foremost thing you must do is to have the proper mindset.
So the first mistake most insurance agents make is they do not realize that a recession is a normal business cycle.
The impending recession is not the first nor will it be the last one. But you must approach your insurance marketing with the mindset that sees that a recession is like a fire that starts small and grows or can be immediately extinguished or at least kept contained depending on several factors. And you can use your insurance marketing to offset some of those factors.
Think about this: All fires need oxygen to burn. And with every recession the media provides the oxygen to try to build the recessionary thinking, or in other words, the fire, that your scared client will feed on. So The more your client listens to the media the more they will believe the recession is impacting their lives and act accordingly. This is basic herd mentality that is a strong governing psychological trigger. You have to be smart enough to recognize that the media has an agenda when they fan the flames of the recession type of thinking.
So what can you do about it? You insurance marketing can do a lot. For example, be the person who is out there looking for positive things going on in the economy and share that information with your insureds. It is called being a good news merchant. Local information is most effective because that will resonate better with your clients.
But unfortunately along with the number one worst mistake most agents make in dealing with a recession, they also are quick to jump on board with the media and start spewing all the negativism associated with a recession.
Why is it critically important that you NOT follow this path? Because of this truth.
Most people including your clients are walking around looking for someone to lead them, to show them the way. And YOU must be the strong, loving hand they are seeking in a difficult time. And you communicate this via your insurance marketing.
Now, I am not saying that you have to be a Pollyanna everything is fine as long as you have a positive attitude. I am not saying that the recession is not real.
I am not a proponent of sticking my head in the sand and pretending that there are no concerns. Hogwash. There are some real concerns, but what I am saying is that the issues will not and should not negatively impact an insurance agency unless you choose not to effectively use your insurance marketing to communicate a counter balancing findings of good things going on in the economy and spreading the good news. Otherwise you are simply allowing your clients to believe and think that all there is going on in the world is the negative economic things spewed by the sensationalism driven media. You must focus your insurance marketing to not allow that to happen.
The reality is that people do not like to live in fear. They want confidence in the future, and they will be attracted to your insurance marketing if you show that confidence. In fact, the very fact that there is a recession coming when properly positioned should fuel an insurance agents growth in several ways.
I will cover mistakes 2 and 3 in Part 2 and Part 3 of this 3 part series.
I honestly hope you have found this information helpful and more importantly I hope you apply and implement the business lessons.