If a small independent brokerage in rural Canada attempts to take on a giant, commoditized direct-to-consumer player, it can quickly turn into a David versus Goliath rematch. The opposition may outplay you with regards to gross written premium, the size of their book, and the monumental scale of their advertising spend – but take heart in the fact that the giant doesn’t always win.
A cunning display of best business practices should do the trick for any David feeling the heat from the Goliaths in the Canadian insurance marketplace. Success for the small independent brokerage is all about differentiation and communicating a unique value-proposition, according to Tim Rooney, managing partner at Rooney, Earl & Partners, and exclusive speaker at Insurance Business’s upcoming webinar ‘Lead generation and building referral relationships in a ‘hard’ market’.
Social media is an increasingly important communication tool and is one that small brokerage firms can use to generate leads and build relationships – but you have to put the hard graft in.
Rooney explained: “There was a time not so long ago when a brokerage could share some good content on social media, such as ‘10 tips for saving on your insurance,’ and that would push them ahead of the pack. However, as more and more firms got involved and started publishing blogs and whitepapers, it became much more difficult for smaller firms to differentiate themselves online.
“Secondly, the social media party is now over from a cost perspective. Whereas social media used to be free, now firms have to spend money to promote posts on Facebook or extend their reach on LinkedIn. If they don’t spend money, they will struggle to gain traction on social media.”
That takes us back to the problem of the goliath-sized advertising, marketing and social media spends of the corporate giants. Geico Insurance doesn’t operate in Canada and yet most Canadians would be able to recognize the Geico Gecko – a prime example of what huge firms can achieve when they have very deep pockets.
So, what can small independent brokerage firms in Canada do to differentiate themselves online? Insurance broker Frédérik Tessier has been using social media – especially Facebook – to boost client relationships for Ontario-based MLS Insurance Brokers, which has three small town locations in Alexandria, Casselman and St-Isidore.
“Social media is a tool every brokerage can make the most of,” Tessier told Insurance Business. “It can cost a lot of money to promote your brand and increase your brokerage’s visibility through mainstream media. A big marketing budget is something not all brokerages have. If your budget is low, social media is a fantastic alternative because it’s very inexpensive. You can start a Facebook page for zero dollars and start building your brokerage’s presence in the digital community.”
Rather than using Facebook to attract new leads, MLS Insurance Brokers has adopted a strategy of friendly communication, community interaction and “getting a finger on the pulse of the [local] clients”. Does that fit in line with Rooney’s suggested differentiation strategy? Absolutely. By interacting with the local community in an engaging and relatable manner, MLS Insurance Brokers is gaining the trust, and therefore the business, of the local clientele.
Rooney added: “Social media sites like Facebook and LinkedIn can be very useful tools for starting conversations as part of your brand strategy. But managing your social media effectively takes time and effort. Are you able to generate leads via social media? It all depends on your network, your strategy and how you differentiate yourself.”
Learn more about effective prospecting and lead generation by registering for ‘Lead generation and building referral relationships in a ‘hard’ market,’ an online course presented by Rooney on November 01 at 2pm ET.
