I hope this summer was as relaxing for you as it was for me and my family. As we enter these last few months of 2021, we look with great anticipation for 2022 to begin.

In my last article for this SaskBroker Magazine I discussed sales management within Saskatchewan brokerages and reviewed many of my findings from recent interviews with several Saskatchewan brokerages. In part two of the article, I would like to follow up by discussing the state of marketing management within Saskatchewan insurance brokerages.

I remind readers that statistics quoted in this article are not scientific in nature but are reflective of answers that I received during my various discussions with brokerages.

When I discussed sales management in the last issue, I found the state of sales management was quite strong with Saskatchewan brokerages. I hope that you understand the importance of managing sales operations to benefit your organization. Marketing is a natural topic that follows sales. In fact, some would say marketing happens first and sales follow. In my opinion, they happen in tandem in order to move sales goals of the organization closer to fruition.

First things first: Brokerages must ensure that all employees understand that marketing is a system which positions organizations as the preferred supplier of a product or service. For our discussion we will be looking at how insurance brokerages use marketing to position themselves as a client’s preferred supplier of insurance products.

Critical to the success of any marketing plan is ensuring brokerages have the products prospects need and suppliers of those products. When I discussed marketing management with brokerages, I found it was pretty evenly split (50%-50%) with regards to brokerages researching insurer’s appetites. Brokerages that don't know what insurers want may find themselves marketing to clients where satisfaction may be impossible.

For example, why develop a marketing strategy to attract ski hill operations when none of a brokerage’s insurers want to provide insurance for ski hill operations? By researching insurer’s needs, brokerages will be able to develop more focused marketing strategies and have a greater success rate. A quick note - insurers develop plans and budgets well in advance of the next fiscal year. As a result, brokerages should be having discussions about insurer appetite early to allow proper planning for next fiscal year.

The next question I posed to brokerages about their marketing is “Do they have a marketing plan?” And to no surprise the same split became apparent. 50% of brokerages in Saskatchewan develop marketing plans and 50% of brokerages in Saskatchewan do not. This split means there is pent up potential for brokerages not planning their marketing efforts.

Often developing a marketing plan is nothing more than just documenting what is normally done during the year. But, by having written deadlines and people responsible for these activities, marketing plans are much more likely to occur. When these marketing activities occur in coordinated ways, they have a bigger impact. For example, if a brokerage normally sends out travel insurance information with fall billings, it may want to incorporate that into a marketing plan. Having someone in a position of authority monitoring this activity will ensure that it does not get overlooked.

By planning activities there is a greater likelihood they will occur and if they're more likely to occur your brokerage will reap several benefits of these marketing strategies. They don't have to be complicated; they just have to be repeated over and over.

Another marketing question I posed to Saskatchewan brokers centered around community involvement. As I suspected, responses were strong. 100% of brokerages supported local groups and charities. Hey, no big surprise, right? We are talking Saskatchewan after all. A small percentage of brokerages, however, do not have a community involvement strategy, they just donate when asked. I believe a more strategic approach is needed. Look at the brokerage’s sales plan, understand insurers appetites and know your strengths. With this information the brokerage will become involved in the community in a way that will be most beneficial. Let me explain.

Let’s presume you wish to grow your farm insurance portfolio. You should be supporting those community groups active in agricultural areas. With a little research you will find several worthy causes connected to this agricultural sector and your support of these causes will raise your brokerage’s profile in that desired sector.

Have you ever heard the saying taking candy from a baby? Well, it might be easy to take that candy, but the baby will cry and scream. What does this have to do with marketing? Simple, if you don't know what your clients like, you might stop offering that service or product. Surveying clients is an important part of any marketing strategy. Maybe you've already experienced this. Have you ever not offered calendars one year? Have you ever not offered a pen when a client is signing a document? Have you ever removed a candy dish from your front counter? If you have, you may have heard strong comments from your clients. Taking these articles away from your clients might be a way to save a few dollars but do you really want to take candy from a baby?

Many successful organizations are in touch with clients to know what they want and need. So too should insurance brokers. Surveying clients provides valuable marketing information. Surveying does not have to be complicated; it could be asking maybe two or three questions in every piece of mail that goes to clients. Or having a footer on an email when connecting electronically with a client. Or having a link to a website where your web designer can build you a survey page. There are many ways to understand what clients need and want. Oh, and don't forget to ask them what they like about your brokerage. You don't want to take candy from a baby.

Finally, I would like to discuss budgeting. Two thirds of Saskatchewan brokerages have money allocated to marketing efforts. This shows that there is lots of potential for brokerages to be more strategic and more deliberate with marketing expenditures. Many people ask what should happen first, a brokerage financial budget or a marketing budget? Well, my view is they should be constructed in tandem. You see, as a sales organization your financial budget will be largely dependent upon the sales of your brokerage. And we do know that marketing efforts will impact that sales strategy. Costing and developing targeted marketing campaigns within your immediate market and beyond will allow you to be more deliberate with your marketing expenditures. It's difficult if not impossible to measure the success of any marketing strategy if you don't know what it costs. Budgeting is one way to measure that success.

As I close this article, I am thinking of all my Saskatchewan broker friends and the recent convention postponement announcement. We’ve all been through some crazy times - eventually we will all be able to gather again. Until then, stay safe.