BenefitPlace.com (BP) and BPTradeShow.com (BPTS) are constantly monitoring social media, especially Linkedin, for trends in the Insurance and Benefits Industries. Among the Groups we monitor, the "Players" include
- Insurance Company Decision-Makers
- Wholesalers, MGAs, GAs, PAs, etc
- Brokers and Agents
- Service Providers, ie. Consultants, TPAs, Enrollment Cos., etc.
Four problems seem to be shared among these Industry "Players":
- Reducing Cost of Marketing and Selling!
- Expanding the Distribution Channels!
- Shortening Selling Cycles!
- Increasing Sales and Revenues (ROI)!
As we monitor the discussions about these problems, we note some common threads:
- The problem is Always Someone Else's Fault!
- It was Always Better in the Past!!
- A Focus on the Problem Rather Than Finding Solutions!
- An Unwillingness to Take Risks That Might Provide Solutions!
- An Unwillingness to Embrace Change!
- Anything New Can't Work!
We're going to go out on the "Proverbial Limb" with some Solutions to the above Problems fully realizing that the above "Common Threads" will negate anything we may propose:
- Reducing Cost of Marketing and Selling - A dedicated shift to "Inbound" marketing from traditional "Outbound" models could substantially reduce costs while producing measurable results! According to a recent HubSpot study the savings could be as much as 61%. - Inbound Leads Cost 61% Less Than Outbound [New Data].
- Expanding the Distribution Channels! - With traditional commissions and renewals shrinking or disappearing, all parties must look at new forms of "Distribution Channels". One of these that has been extremely effective for other Industries is "Affiliate"Marketing"! What is "Affiliate Marketing? According to Blue Global Media:
"Affiliate marketing is an advertising model that works especially well online. It allows advertisers, also known as merchants, to sell their products and services through affiliates, or publishers. Basically, affiliate marketing gives a business a virtual sales force of online salesman, while giving affiliates a way to make money online without producing their own products or services. In return for promoting an advertiser’s products, affiliates receive a commission based on sales."
BP and BPTS would suggest that all of the above "Players" could substantially expand their distribution channels and marketing capacities - while reducing their costs - by implementing an Affiliate Marketing Strategy! This could be part of, and not exclusive from, the "Inbound" Marketing Strategy!
3) Shortening Selling Cycles - Utilizing "Inbound" Strategies combined with "Affiliate" Marketing, the "Players" should monitor, collect, and distribute the "Qualified Prospects" to the "Producing Field Force" in the straightest line possible. Eliminate the dependence on "Field Management"! Top heavy Field Management is generally expensive, slow to move, ineffective, and often favors personal relationships over Producer Statistics!
4) Increasing Sales and Revenues (ROI) - These "Bottom-Line" items can be achieved with the implementation of the above "Strategies"! We are not suggesting throwing out the old and bringing in the new. We are suggesting that the above can be implemented at a limited cost of time and money. Those parties who are heavily "invested" in perpetuating the old models and strategies are generally going to be least informed, generally negative, slow to make changes. They will react with the tenancies - Threads - outlined above:
- The problem is Always Someone Else's Fault!
- It was Always Better in the Past!!
- A Focus on the Problems Rather Than Finding Solutions!
- An Unwillingness to Take Risks That Might Provide Solutions!
- An Unwillingness to Embrace Change!
- Anything New Can't Work!
Let's put aside the "Doom and Gloom" that is pervasive in many Social Media discussions and the general media! There have always have been "Problems". Throughout the years, Industry survivors have been those who: focus on "Solutions", take measured "Risks", embrace "Change" and move "Quickly"!
As I was coming to press with this BLOG, I received Wendall Potter's article on Huff Post titled, "Coming Soon: The End of Health Insurers As We Know Them -- By Self-Inflicted Wounds"! Mr. Potter points out, "The system doesn't work. It's broke today" He added: "The end of insurance companies, the way we've run the business in the past, is here." The article goes on, "...the Affordable Care Act -- which essentially will ban medical underwriting after 2014 as well as several anti-consumer practices -- has accelerated the time frame in which the industry's current business model bites the dust. But reform was only an accelerant.” Huffington Post March 18,2012
At BP and BPTS we are integrally involved in instituting "Inbound" Marketing Strategies and "Affiliate" Marketing for ourselves, those who list on BenefitPlace.biz, and Exhibitors on BPTradeShow.com. For more information: Email - max@benefitplace.biz or Call - 216.577.5579
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