For the independent insurance agency, entering into specialized coverage areas or “niche markets” can be a smart business move. Agencies that successfully do this not only find new clients, but they may also be able to serve their existing clients better as well. While developing a niche program will take time and focus, it can be well worth it. The following are four points in the process:
1. Identify Available Niches
Look at each business or category of individuals that you serve and identify their markets. Maybe you supply life insurance to some local teachers or have policies with several doctors at a particular hospital. Targeting these same types of professionals is an easy way to find people with similar interests in your services. Pick the top three to five fields to consider aggressive outreach, networking, and marketing strategies.
2. Have a Thinking Session
Have a brainstorming session with your top agents to decide what products and services are best suited to which group. Consider the companies and people you interact with on a daily basis. Learn about the demographics that you are targeting for best results, especially during the beginning phases of the process. Create possible marketing strategies for each target group.
3. Specify Your Niche
Try to be very detail oriented at this stage in the process. Now is the time to streamline your strategy. Target specific ideal customers to help define exactly the type of business or person you are looking to service. If you already have many clients in the restaurant business for example, then you might consider targeting restaurants in your area.
4. Develop and Execute Your Strategy
Once you have made your market choices and you’re sure that you have products the clients need, it’s time to create your plan to grow and start your initiative. It is often better to start with a good plan than wait indefinitely for a perfect one. If you’ve researched and planned effectively, you will likely see good results in your new niche market.
MiniCo offers several specialty insurance lines, including commercial self-storage and collectibles coverage. To learn more, contact MiniCo’s Customer Care Department at firstname.lastname@example.org or 800-447-8383.