Market Segmentation For Insurance Agencies

Market Segmentation for Insurance Agencies

Every segment of your market wants to feel like their needs are special and therefore are highly likely to respond to marketing communications directed at the segment they represent. Sending out a shotgun blast of marketing messages is likely to offend as many people as it motivates. This can happen very easily in today’s environment where many messages are broadcast to consumers without considering the nature of the segment they may be a part of.

A simple example would be in your message greeting. Have you ever had an older female customer complain that you used their first name in an email blast? Have you ever sent an email blast about personal umbrella insurance and gotten a response from a college student asking why you’re wasting their time. You could probably go on and on about email blasts you’d love to take back. Usually they’re ignored, but sometimes they offend.

When you are creating a marketing plan to spread a message to everyone in your marketplace or a specific group, your market segmentation effort is critical and affects the way your message is received and acted upon. In today’s insurance environment, you must either do the market segmentation research or outsource to someone who is experienced and knows what they’re doing. In almost every case, your message will have a call-to-action that will typically point to your website or a phone number. Before you press SEND, consider the following:

Ethnic Groups

Without a doubt, certain ethnic groups differ as a result of their behavior. What captures a person’s interest from one ethnic group may be totally different from what captures a person’s interest from another. According to Wikipedia, an ethnic group is a category of people who identify with each other based on their similarities, such as a common language, ancestral, social, cultural, or national experiences.

In market segmentation, you need to be aware of this and refine your marketing efforts in such a way that they are most appealing to groups that hold many characteristics in common.

Socioeconomic Groups

Targeting a socioeconomic group can be a preferred marketing segmentation. This data is often found within lead data and can be filtered accordingly (if the data is truthful). For example, an agent can easily determine what group of prospects are considered high-net-worth prospects because their income range can be found in the lead data. Of course, there are other indicators that will enable the agent to estimate the prospects family income by looking at the neighborhood they live in or the year and type of vehicle they drive.

Professional Groups

Professional groups are one of the easier methods of market segmentation because most professionals belong to associations made up of others in the same profession. In most cases, these associations are willing to share their membership lists. Another way to find out which people are in the same professional group is the type of employment. When purchasing internet leads, type of employment is typically a field in the lead questionnaire. There are many online databases that will list their members by where they work and what they do, and in many cases provide an address for that location.

To achieve the greatest return on your marketing investment, consider targeting the various market segmentations, and then adapt your marketing message to meet the needs of the members in each segment.