Have you heard the phrase “penny-wise, pound-foolish?” It describes being careful with small amounts of money but not large ones. It can also refer to taking cost-saving measures now while failing to consider the long-term implications that will likely result in a higher spend later.
Businesses have to watch their budgets closely—every dollar counts. And while independent insurance agencies have many line items to consider, the marketing budget and martech tools are not the places to skimp. Here are six reasons to remember that you get what you pay for in marketing to help you spend wisely.
1. Low-cost website solutions often miss the mark.
Simply creating a website can be done pretty cheaply. Get a domain, whip up some copy, pay the guy down the street who “does marketing” to pop something up on the internet, and you’re done, right? Well, yes, but only until you realize you’re not getting any leads and your clients and prospects get no value from it.
Your website is so much more than a business card. It needs SEO-optimized and location-specific content to help you get found on the web. It has to be attractive and easy to navigate, especially since you have less than ten seconds to grab a visitor’s attention. With the right built-in sales tools, your site can make conversions easier, boosting your return on investment. When clients can find the information they need or submit requests without having to get you on the phone, you delight them with convenience, encouraging retention while saving yourself time.
2. Multiple single-purpose products make for a clunky tech stack.
You probably encourage your clients to bundle products with one carrier for better rates, easier communication, and higher efficiency. Why wouldn’t you do the same for your own business?
Multiple low-cost products can add up quickly, so you may not be saving as much money as you think. If a vendor offers products that can work together, it may be more cost effective to consolidate. Additionally, the more products sync up, the more time you and your team can save on back office tasks. Hopping from system to system may take only a minute or two, but the lost productivity and wasted minutes aren’t doing you any favors.
3. Specialists understand your business better.
If you were a firefighter, you wouldn’t want your protective suit made by any company that could stitch together a jacket and pants. You’d want it made by someone who specializes in high-quality safety products made exclusively for the nature of the job.
Your insurance martech is far less life-or-death than a fire suit, but the same principle applies. Products designed by and for insurance professionals will be better suited to help your agency get what you need from them. Spending money on bells and whistles that don’t apply is a waste, plain and simple.
4. Insurance is a relationship business every step of the way.
You rely on your relationships to help you get leads, close sales, and retain business. That doesn’t just go for your clients, either. You’re leveraging your rapport with insurance company reps, including account managers, claims specialists, sales teams, and underwriters. Without those connections, you might not be able to move the mountains you do to give customers the service they deserve.
A marketing company that knows the insurance industry inside and out can do that for you, too. From network associations to carriers and other martech vendors, those relationships are invaluable, as they often allow vendors to deliver additional products and services or discounts to you. When selecting a martech vendor, investigate what relationships they have in the insurance industry to see if there are any you can take advantage of.
5. Integrations can stretch your dollar without stretching your staff.
Just as people can work together, systems can, too. But when your low-cost marketing product doesn’t play nicely with anything else in your tech stack, you and your team end up filling in the gaps.
Generic off-the-shelf products that can work in any industry are unlikely to integrate with your agency management system in a meaningful way. But when your marketing automation platform and your AMS can communicate seamlessly, your ability to connect with your customers and prospects soars. Renewal campaigns, cross-sell opportunities, and other personalized marketing messages take significantly less time when you don’t have to hunt down data and transfer it manually.
6. Established vendors stand the test of time.
When a vendor is brand new to the marketplace and they’re offering deep discounts, that can be very enticing. But what happens when they don’t last, pivot their product offering, or simply can’t live up to their hype? You’re stuck needing to replace your website or client engagement tools, sometimes with little notice or preparation.
When a company has been part of the insurance industry for decades and their products are continuously refined and updated to stay current with trends and regulations, it may cost you a little bit more. But when money is buying you peace of mind, it’s usually worth it.
Be pound-wise, not penny-foolish.
These days, you can’t afford to waste money or time on marketing solutions that won’t work for you. You need tried and true products backed by a company with exemplary customer service, leadership respected by the insurance community, and connections to other industry veterans who can help you take your agency to the next level. Cheap “solutions” might sound good at first, but if you’re left in the lurch or find yourself always thinking you need something more or better, you might wish you’d paid just a bit more for better quality.
At Agency Revolution, we value our history and reputation in the industry. Our products have been around the block a time or two (or three or four..), and our leaders have decades upon decades of combined experience. Let us show you who we are and why you can count on us to be in it for the long haul. Schedule a demo today.
