Slide set from the June 12, 2012 webinar, Demystifying Digital Marketing, a process to help insurance agents the right digital marketing tactics based on objectives, opportunity, aptitude, available time, and budget.

1. Demystifying Digital
Marketing
Five Steps to Managing a Strategy for
Agency Growth and Profit

2. Presenters
Kevin McDonald, Confluency Solutions
John Fear, Premier Business Consulting

3. What is digital
marketing?
Any electronic medium used to promote sales,
product or service information to clients or
potential client or used to manage sales and
brand data.

4. Not Everything is
Digital But Digital
Touches Everything
It is the way people communicate.
Print advertising to web: 67%
Direct mail to web: 59%

5. How to Increase Revenue and Profit
Buy Agency Due Diligence, Fit,
and Assimilation
Leverage
Join Aggregator
Referrals and
New Clients External Marketing
Client
Account Development Relationships
Client
Policy Development Relationships
Lead and Sales Management Affects Everything

6. How Do Digital Tactics
Affect Each?

7. Joe Agent
2000 clients
✦ 1,000 personal and 1,000 commercial
✦ PL revenue = $200,000
✦ CL revenue = $800,000
✦ 1400 policies - personal
✦ $800 average commission - commercial
✦ 92% retention

8. To Get Where
You Want to Go
You have to know
where you are.

9. What you said
Does your agency have a formal marketing plan?
Yes - 38%
No - 62%

10. The 5 Steps
1. Set a top level goal
2. Identify gaps
3. Develop tactics
4. Set segment objectives
5. Measure results monthly

11. The 5 Steps
1. Set a top level goal
2. Identify gaps
3. Develop tactics
4. Set segment objectives
5. Measure results monthly

12. Top Down
Revenue has been flat the last several
years but Joe wants to grow 5%.

13. Bottom Up Tests
To stay flat, Joe has to replace...
• 80 personal lines clients and
• 80 commercial

14. Or Get...
• More policies per personal lines account
• More premium per commercial account
• Improve retention

15. ...Or Do Some of Each
How will digital marketing help him do that?

16. The 5 Steps
1. Set a top level goal
2. Identify gaps
3. Develop tactics
4. Set segment objectives
5. Measure results monthly

17. Step Two
Identify the gaps between where you will end
up and your top level objective; include
retention rates and changes in commission and
premiums imposed by your insurance carriers.

18. The 5 Steps
1. Set a top level goal
2. Identify gaps
3. Develop tactics
4. Set segment objectives
5. Measure results monthly

19. Lead Management
GM vs. FB – what’s the return on $242 or $3M for 30 seconds?
Tracking Source to Sale – what is the return on your investment?
Initial Investment – what is the cost of the lead opportunities?
Acquisition costs – reports, staff and operational resources
Calculating the “Cost”
Number of Leads – what is the Universe you’re trying to reach?
Response Rate – how are you optimizing the message?
Quote Rate – is the client’s response expectation being met?
Close Rate – are the skills of your staff applied to make the sale?
Policies Per Account – are you taking advantage of all opportunities?

20. Calculating the “Cost”
Number of Leads – what is the Universe you’re trying to reach?
Response Rate – how are you optimizing the message?
Quote Rate – is the client’s response expectation being met?
Close Rate – are the skills of your staff applied to make the sale?
Policies Per Account – are you taking advantage of all opportunities?

21. What you said
Does your agency have a customer development program?
None -----------38%
Annual reviews---38%
E-Newsletter ---- 12%
Traditional cards --6%
Other------------6%

22. Search Engines - SEO
•Organic Results
•Local Results
•Paid Results (PPC)

23. Digital Tactics and Growth Sources
Policies or New Clients
New Clients
Tactic What is It? Retention Commission (not
Referrals
Per Account referrals)
PPC Auction where you
bid on keywords ✔
Search engine
SEO optimization - how
to maximize traffic ✔
and conversions
Local business
Local search results and
optimization
✔
Systematic use of
Email email to
communicate with ✔ ✔ ✔ ✔
clients & prospects.
Brand management
Social through building
and managing ✔ ✔ ✔ ✔
online communities

24. Demand for insurance exists, it is not created*
Are you visible? Do you get a lead
Do people ‘visit’ you? Did you convert?
SEO, email, social, etc. SEO, channel content Lead quality, sales management

25. 5 Digital Tactics - Relative Cost
Cost of Visibility
Cost
Email Local Search Social Organic
PPC
Marketing SEO Media SEO

26. Insurance
Pay-Per-Click
Most Competitive Keywords
Customer Acquisition Can Be
$2,000
Find Competition - Low &
Commission - High: Sweet Spot
Infographic: WordStream

27. 5 Internet Tactics - Sales Lag
Before you see leads
Lead Time
to Results
Email Local Search Social Organic
PPC
Marketing SEO Media SEO

28. 5 Internet Tactics - Program Phases
Time
Most agents are stuck here with social media marketing
Set Up Content Engagement Leads Sales
Email Local Social Organic SEO PPC

29. Yellow Page
Hangover
The days of buying ad space and
going back to business-as-usual
for 12 months are over.

30. Level of Digital Marketing Activity
(Leads are Proportionate to Activity)
7 Marketing Options
Local Search - Website
SEO - Website
Email
Social
PPC
(Text - SMS)
(Purchase Leads)
Mix 1 Mix 2 Mix 3
1. Do it yourself
Time Money 2. Pay for services
3. Do nothing

31. 5 Internet Tactics - Relative ROI
e e
ng ng
Ra Ra
Typical ROI
Email Local Search Social Organic
PPC
Marketing SEO Media SEO

32. The 5 Steps
1. Set a top level goal
2. Identify gaps
3. Develop tactics
4. Set segment objectives
5. Measure results monthly

33. Mysterious Referrals
Most agents: 70% of new business from referrals

34. Joe Agent
• 0% Growth = 160 new clients
• 112 from referral @ 70%
• 48 from somewhere else = 1 a week
• 5% Growth = 100 additional new clients

35. To grow 5%, Joe could acquire new clients
• 3 total new clients a week
• 2, if retention = 95% or policies per
personal lines account = 2.0
• 1, if retention = 95% or commission per CL
account = $1,000

36. What you said
Most important digital marketing tactic for 2012?
Email Marketing - 24%
Local Search Optimization - 23%
Organic SEO - 21%
Social Media - 32%

37. Lead Generation Trends
Multi-Industry
Source: Marketing Sherpa
2011 Marketing Benchmark
Survey

38. Sales Conversions
• Different lead sources have different
characteristics
• Results differ if you have good lead
management

39. Source No Lead With Lead Gain
Management Management
Referral 33% 68% +35
Social 33%* 68%* +35
Media
Email 34% 52% +18
SEO 16% 36% +20
(organic)
Local 16%* 36%* +20
Search
PPC 8% 22% +14
*There is not enough data for social or local search leads to develop separate conversion rates for them. But social leads are essentially referrals from a personal or community
network, so for the moment, we are assuming the conversion rates for social are similar to traditional referrals. Google lumps website traffic from local search into either organic
keyword data or with referral traffic so we could assume that conversion rates are similar to organic search traffic. However, several sources have claimed local search conversions are
better than for natural search and some recent survey data seem to support this (see the slide on trust and relevance of search results).

40. Often
Overlooked
The impact of lead management
and sales skills

41. Sales Skills
In Sync? – does your staff understand what your growth objectives are?
Quoting vs. Sales – what is your staff ’s perspective on what the “goal” is?
Goals – what are the individual and agency production goals
Coaching – do you have a mechanism for giving sales process feedback ?
Compensation – is your agency’s compensation plan aligned with your goals?

42. Characteristics of Social and Search

43. Social is Referral on Is Steroids
37% of consumers
trust what their
social network says
about products and 37.5% of consumers
services start insurance
research by
checking with family
and friends
Source: 2010 AIS Media
Survey

44. 4 Types of Internet Search
• Organic (SEO) - keyword and link driven
• Local - exploding due to tablets, smart phones
• Paid - difficult for mainstream keywords
• Social - 67% increase since 2010*
*Source: Fifth Annual comScore
Local Search Usage Study

45. Trust and Relevance
Source: comScore Local
Search Usage Study

47. Social
• LinkedIn = Business
• Facebook = Personal
• Twitter = news, celebrity, other?
• Google+ = nerd, photography, other?

48. Maximize
• Budget
• Time

49. Leverage Your Website
• Across multiple channels
• email, social, mobile
• Time and money are finite resources

50. Ecosystem Print, Direct
Mail

51. Insurance Research Starts Here
• Asking friends and family - 37.5%
• Search Engines - 32%
• Yellow Pages - 3%
• Everything else - 27%
Source: 2010 AIS Media Survey

52. Back to Joe
How will he close the gap and
generate enough new revenue
to achieve 5% growth?

53. It’s a game of
increments.

54. How and What - Increments by Segment
Email to Clients Improved Lead
Retention improves Management
by 1 point Conversion rates
improve by 10
points
Local Search
Optimization
Email to Clients
50 additional leads
Referrals increase
by 50

55. How - Increments by Segments
SEO
50 additional leads Social Marketing
50 additional leads
Email to Clients
PL policies per
account to 1.5; CL
average commission
to $850

56. The 5 Steps
1. Set a top level goal
2. Identify gaps
3. Develop tactics
4. Set segment objectives
5. Measure results monthly

57. Number of Conversion New % of Total
Tactic Source Leads by LOB
Leads Rate Commission New
E-Newsletter +1% Retention NA NA NA NA-$10,000 NA
E-Newsletter New Policies Personal Lines 50 50% $6,250 3.4%
E-Newsletter New Policies Commercial Lines 50 50% $21,250 11.6%
Personal and
Local Search New Clients 50 35% $9,900 5.4%
Commercial
Personal and
SEO New Clients 50 25% $7,150 3.9%
Commercial
Personal and
Social New Clients 50 50% $13,750 7.5%
Commercial
Passive Personal and
New Clients 320* 50% $88,000 48%
Referrals* Commercial
Unidentified Personal and
New Clients 192* 35% $36,960 20.2%
Sources Commercial
Total New
$183,260 100%
Commission

58. Revenue New Total
%Change
Retained Revenue Projected
$930,000 $183,260 $1,113,260 +11.3%

59. Key Points
• Results are process driven
• Measure early returns by source
• Objective doesn’t require
perfection

60. Key Points #2
• Referrals still important
• Lead management improves all
• New sources are high
conversion

61. The 5 Steps
1. Set a top level goal
2. Identify gaps
3. Develop tactics
4. Set segment objectives
5. Measure results monthly

62. Digital Demystified: The channels are
different but the fundamentals are the same.

63. The 5 Steps
1. Set a top level goal
2. Identify gaps
3. Develop tactics
4. Set segment objectives
5. Measure results monthly

64. Thanks for attending!
Demystifying Digital Marketing
Five Steps to Managing a Strategy for
Agency Growth and Profit