How much an average customer lifetime value is in Insurance business?
Client Lifetime Value is, very simply, the product of two variables:
Price: How much the service costs
Customer Retention: How long you can keep selling your product to a given customer.
As an example:
Your Netflix subscription costs you $10 per month
You cancel your subscription after 10 months of using the service
Netflix determines your Customer LTV is $100.
Online marketing has been a topic of discussion for a long time now. People have started realizing its importance and every business is trying their best to master the art of online marketing. But how many of them actually understand online marketing? To begin with, let us define online marketing in the simplest form. Online marketing, also known as internet marketing, is the promotion of businesses, brands, products, and services on the internet in order to get more leads and customers. This promotion on the internet is done using different tools, mediums, and marketing tactics.
If you are reading this blog, you are an insurance broker who has finally realized the need to take matters in your hand and initiate the process of online marketing. With this blog, I hope to give you that authority of deciding what is best for your business in the digital world and by the end of this blog you will be able to decide the best possible online marketing strategies for your firm.
Online marketing is a vast concept. It has various types of marketing strategies that can be used as a standalone strategy or combined to create a comprehensive online marketing plan. If I were to name the major concepts that come under online marketing, they would include Search Engine Optimization (SEO), Search Engine Marketing (SEM), content marketing, Social Media Marketing (SMM), affiliate marketing, email marketing, etc. You cannot simply choose one or two of these and decide to start online marketing. What you need is a plan to start online marketing. Marketing is not just a decisive process but also a strategic one. Of course, you need to take decisions but having a strategy in place is of utmost importance to get good results.
To begin the strategizing process, you need to first and foremost figure out what your goals are and what you aim to achieve through this online marketing strategy. Do not just stop at figuring out these goals and aims, define them. It is essential to define these goals and to make them as specific as it gets. The reason for the emphasis on defining the goals is to ensure that you do not end up setting unrealistic, vague or unmeasurable goals. Such goals will only be statements. Instead, you need to set goals such as, “goal to acquire at least 5 insurance leads through online marketing efforts for every 100$ spent.”
The next important factor of your plan should be the target audience or your customers. Once you have defined a goal for your strategy, you will want to work on achieving it. But how can you achieve it if you don’t know the people you are pitching your strategy to? Be it any type of marketing, traditional or online, identifying the target audience is one step you cannot skip. So work on this step. To begin with, you can have a word with your existing customers and figure what made them choose you as an insurance broker and how did they find you. Identify what their pain points are as these pain points will be your starting points to reach out to more potential customers. Now based on the insights you receive, you need to create your customer personas. Personas are fictional persons you create to assume what your target customer would be like. You may want to consider doing a little more research and analysis to get the perfect persona. Make sure your customer personas have a complete demographic, geographic and psychographic. Once you find the different personas, create strategies for them. For example, you could have specific medical insurance promotions for seniors, life insurance for working professionals and so on.
Once you have figured out these two factors along with removing a budget and stipulated time for the strategy, you are good to choose the types of online marketing you want to use and push the start button.
Begin with Search Engine Optimization
Search Engine Optimization (SEO) is the trending term you hear quite often these days. Though it has been a part of search engines for years now, businesses have only now identified the value of SEO to market their brand. Search engine optimization is a process in which you optimize your business website to make it rank on the top search results in the search engines result pages. With the race to stand out, SEO became a necessity for all businesses. This being said, I would recommend that you spend your time and energy on SEO for your insurance website. Why? Because a search engine is the very first place where a user goes to look for anything, and if you do not turn up there then you lose out on a big chunk of the target audience.
So how do you go about making your content and website, SEO-friendly? Search engine optimization can be divided into two parts, on-page SEO, and off-page SEO. On-page SEO refers to the process of optimizing your website in order to rank it well on the search engine result pages. Off-page SEO as the name suggests refers to process of optimizing factors outside your website to get a good SERP ranking. These are activities that you perform on other platforms to bring up your website rank. Let us now have a look at some of the factors that play an important role in search engines optimization.
Keywords are terms and phrases used by online users to look up for anything online. These terms are put in the search query of the search engines by the users. These keywords are indeed “key” “words” when it comes to SEO as when they are included correctly in your website content they can boost your SERP ranking.
To start using the right keywords, you need to do a keyword research wherein you will find the most commonly used keywords by your target audience. You should also look up for the keywords that your competitors are using to rank high on the SERPs. When doing your keyword research, keep a look out for the two types of keywords, long-tail keywords, and short-tail keywords. Long tail keywords are generally longer phrases that comprises of three words and above. These keywords are generally used when you are targeting a specific audience. Short-tail keywords are short and comprise of not more than one to three words. These keywords are more generic and highly competitive from the SEO perspective. For a good SEO strategy, you need to use both these types of keywords. Short-tail keywords are good to get you traffic while long-tail keywords will help you to get better conversions.
Keyword Page Optimization
Page optimization is the process of adding appropriate keywords to your web pages to get the attention of the search engines. This includes not only the content matter on the pages but also the URL, the internal links, the meta descriptions and the title tag. When all these factors are optimized, your website is not only optimized for the search engines but also for easy user experience.
The online users are impatient. When they look for anything online, they are hoping for a quick result or solution. If during such a search your web pages and website do not load fast, you lose out on a potential lead. This will increase your bounce rate, and the search engine will also rank you low based on your slow loading web pages. To find out how fast your website loads currently you can use a free tool such as Test My Site. In case the time is high, make sure you work to get it down by talking to your website developer and ensuring that the website backend codes are checked for speed optimization.
Linking or link-building is an important off-page SEO factor for a good ranking on the search engines result pages. Link-building happens when you have internal and external links within your website content. It gives a sense of trustworthiness to your content. Backlinks are also equally important. Backlinks are other websites linking back to your website. If you have a good number of backlinks, your website becomes an authority for the search engines, and they treat your content as the most relevant source. The links should be relevant and top ranking themselves. To get such links, you need to have exceptional content. You could also get backlinks through guest blogging.
Another amazing and quite an easy technique to boost your SEO is to share your content on social media platforms. When you share the link to your content on your social media profiles, and, people following you can click on your posts and visit your website. If they like what they see, then they will share it on their social media profile as well. This will not directly boost your ranking but help you get more backlinks. And think about the dual benefits! Apart from earning the backlinks, you will also be increasing your brand visibility on the social media.
The major misconception that people have when doing SEO is that they only need to focus on making their website search engine friendly. With this in mind, they stuff their content with unnecessary keywords, add inappropriate links and spam unnecessarily. This does not work! Search engines are smartly designed and are ever-adapting. They are smart enough to catch such practices and reduce the ranking of such websites. Remember, user experience holds a lot of importance for search engines when ranking a website.
Consider Search Engine Marketing
SEM is similar to SEO, but it is a paid form of marketing. SEM is a paid form of online marketing. Where SEO works on a slow yet steady process of enhancing your content and increasing your search rank, SEM directly ranks you on the top of the SERPs, but you need to pay the search engines. A major type of SEM used by many businesses is the pay-per-click model of advertising. In this model, your ad is ranked on the SERP, and every time someone clicks on it, you need to pay the ad publisher.
Since you are an insurance broker, search engine marketing is something you should consider. Why? As SEM enables the users to target the audience based on location and keywords. This will help you to target the local audience with specific needs. That’s right! Keywords are used in SEM also, but you need to pay for keywords. The keywords that are commonly searched and are relevant to your business will have a higher bid price. Also, there are different advertising models of PPC that you can choose based on your budget. The other good thing about SEM is that you can analyze the outcome of your strategy and accordingly modify your ad campaigns. PPC advertising is known to give you a good return on investment when planned and executed well.
Do Not Ignore Content Marketing
If I have to define content marketing for you, it is as simple as it sounds. Content marketing is a technique in which you create good content to encapsulate the attention of the target audience and create awareness about your brand without openly promoting your product or service. So basically, you use the power of words to engage your audience.
But how will publishing content help you get leads? By engaging the users with quality content that provides them with a solution to their problems and directing them to approach you for further assistance. When you are working on creating a content marketing strategy, what you need to identify is the pain points of your target audience. For example, as an insurance broker, your target audience will have queries such as whether a car insurance is a necessity for them or not. You could use this query and create a blog or an infographic informing them of the importance of getting a car insurance. How easy, right? And while creating this content, simply guide them in the end towards your car insurance service. In this way, you educated your prospects as well as helped them with direction to find the solution. This will not only help you get more leads but also boost your SEO as every content you create, whether a blog or an infographic, will index a webpage on the search engines. And why just restrict yourself to blogs and infographics, you could also try your hands on other types of content such as videos, images, podcasts, webinars, etc.
To sum it up, content marketing will help your insurance business by creating a brand awareness, adding credibility to your brand by providing good information and eventually acquiring leads.
Think through Social Media Marketing
Social media is a very large umbrella with more than hundreds of different social media platforms in it. What was introduced to keep people connected has now become an amazing platform to market products and services to people. With more than millions of people present on social media, it acts as one of the best ways to bring your brand in the eyes of the masses. Not to forget the cost-effectiveness of the negligible cost you need to incur to market on these platforms.
Now just because social media has platforms in abundance, it does not mean you use each and every platform to market your insurance business. Your first step in social media strategy should be to identify which platform will be best for your business and how you can use it. The major social media platforms commonly used by people today include Facebook, Twitter, LinkedIn, Pinterest, Instagram, YouTube, and Google+. Facebook is a good choice as it has a large number of users and it provides you with the liberty to post different types of content. Also, Facebook has multiple features specially designed for businesses making it an amazing marketing platform. LinkedIn is another platform which you need to consider. On LinkedIn, you can easily target professionals and inform them about the different insurance services you have by posting blogs and other content.
Once you have selected the platform, you need to be very cautious about how you use it. Make sure you keep your tone casual yet appropriate. Also, understand the importance of getting followers organically as these followers will engage on your page out of choice. Lastly, make sure you keep feeding your audience with good content to keep them engaged. If you cannot capture their attention within seconds, you lose out on potential customers. Another important thing to note is that social media is a two-way conversation platform and if you do not revert to your followers in time you might miss out on an opportunity to get a quality lead. One final word of advice, make sure you measure your performance with the analytical tool of each social media platform and re-strategize if necessary.
Understand Affiliate Marketing
For those of you who are new to the concept of affiliate marketing, let me define it for you. Affiliate marketing is a process that works in partnership with other business. It is the type of marketing in which one business receives traffic from another business’s marketing effort and pays a commission for the same. If you are going to market your business, understand one thing, marketing efforts will need connections. In affiliate marketing, there are two types of connections that work, consumer-based and business-to-business based. The biggest example of affiliate marketing is the Amazon Associates Program. Under this program, you get to create a link to the product you want to promote and share it on your blog or among your friends. If this promotion of yours ends up in a purchase, you get a commission from Amazon. How cool is that! Similarly, you could use affiliate marketing by recommending fellow insurance brokers who specialize in certain types of insurance, which you do not provide service for. You could also try it the other way round. It all depends on how good connections you can build with your fellow brokers.
Start with Email Marketing
Emails have been around almost forever now. Whether it is your social media profile or your online shopping profile, you need to use your email address to get log in. But do you realize that it is not the only purpose of your email address? Emails have been a good form of not just personal and professional communication but also business promotion. But with this benefit of promotion came the bane of spam. While you may want to genuinely promote your business through email marketing, there are various marketers who misuse this opportunity. The result? Genuine marketers also end up in the spam folder. So how do you use email marketing the right way? Let us understand.
The very first thing you need to pay attention to is how you draft your email. A well-drafted email will go in the inbox and not the spam folder. Major email providers have a trigger for words that may classify as a spam. When you use such words in your email, it automatically lands in the spam folder. So draft your emails carefully to avoid landing in the spam folder. You need to create subject lines that capture the attention of the users within seconds. Also, understand that an email is a form of personal communication, so you need to keep your tone personal. Even if you are sending the same email to hundreds of people, make sure you just address the reader and not the whole group. The final thing to keep in mind is to make sure you end with some form of call-to-action. For example, you could send emails to your subscribers informing them about the benefits of a new type of insurance and end the email with a call-to-action asking the users to contact you if they want to buy the insurance policy.
The amazing fact about online marketing is that it is ever innovating and growing day by day. I am sure that in a few months or years I would have a lot more to add in this very blog. Online marketing is indeed a very vast concept, and there is so much more I would like to tell you more about each concept. But for now, I hope this blog helps you to get started.
Ali Salman is an online marketing strategist who have worked with Coca-Cola, Extreme Pita, Mucho Burrito, KIA, Honda and other Fortune 500 companies. Ali Salman now heads Rapid Boost Marketing – Canada’s fastest growing search marketing agency. RBM clients include Fortune 500’s and medium size businesses across North America. Ali as RBM CMO leads his team in building and managing quality, high-performing and cost-effective interactive campaigns and programs for our company’s customers and partners. In his career, he has significantly improved campaign performance for large brands such as Government of Alberta, Liberal Party, Workopolis, Cathay Pacific, as well as medium to large retailers and high-tech B2B-enterprise niches.
Ali and his team develop online promotional concepts that spark viral growth through search and social media for RBM clients, devising strategies that use search engines and more to reach key demographic segments in the ways they’re most likely to be receptive. Ali Salman also oversees corporate marketing initiatives for Rapid Boost Marketing, including strategic communications counsel, public and analyst relations and client education programming.
Ali Salman is an online marketing strategist who have worked with Coca-Cola, Extreme Pita, Mucho Burrito, KIA, Honda and other Fortune 500 companies. Ali Salman now heads Rapid Boost Marketing - Canada's fastest growing search marketing agency. RBM clients include Fortune 500's and medium size businesses across North America. Ali as RBM CMO leads his team in building and managing quality, high-performing and cost-effective interactive campaigns and programs for our company's customers and partners. In his career, he has significantly improved campaign performance for large brands such as Government of Alberta, Liberal Party, Workopolis, Cathay Pacific, as well as medium to large retailers and high-tech B2B-enterprise niches.
Ali and his team develop online promotional concepts that spark viral growth through search and social media for RBM clients, devising strategies that use search engines and more to reach key demographic segments in the ways they're most likely to be receptive. Ali Salman also oversees corporate marketing initiatives for Rapid Boost Marketing, including strategic communications counsel, public and analyst relations and client education programming.