When you’re getting ready to start an independent insurance agency, you need to figure out who your clients are. Whether you’re a captive agent making the transition to the independent world or you’re new to the industry, identifying your target market is an important pre-step to opening up an independent agency.
Be specific about your target market
It’s too vague for an insurance agent to want to sell to everybody. The more specific you can be about the clients you aim to target, the more likely you are to acquire those clients. You can’t be all things to all people; each client has specific needs, and it’s too costly and time-consuming to try to target everyone.
Use your connection
To find out what market you should target, you need to take a look at the industries where you already have a connection. If you’re coming from the world of retail, technology, education, manufacturing, etc., then use your connections. Use your prior knowledge of that industry to find your niche client and focus your marketing and customer service on the specific needs of those clients.
If you’re coming from the captive world of insurance, look to your partner, girlfriend, boyfriend, wife, husband, parents, in-laws, etc. to see if there is a natural connection to a specific industry and client base.
Demographics of your community
You can also look at the demographic and reputation of the community that you live in. Find out why people like to live there. Research what attracts people to move to your community. What do they do for a living? Do they have families? Are they young or old or in between? Is it a college town, a great place to retire, friendly to entrepreneurs, etc.? Once you know the hopes and dreams of the people in your community, you’ll be able to hone in on the type of insurance that is most necessary and more likely to speak to those people.
By narrowing down on one industry and one type of client, you’ll be able to provide much more personalized customer service and position yourself as an expert and a leader. The more specific you are, the less competition you’ll have.
Start an independent agency in Colorado, Arizona, and Utah
Affordable American Insurance provides a turnkey business model for a captive insurance agency to transition to the independent world, or for an existing independent agency a platform to increased carrier representation and revenue while removing carrier production requirements.