Marketing is central to the future success of Broker business

The Professional Insurance Broker Magazine - Autumn 2005

Common misconceptions about marketing are that it is only relevant to large organisations with multi-million euro brand budgets or that it is all about advertising and public relations and design.
How is it then, that there are many very successful companies that spend little or nothing on advertising but swear by their marketing strategies. Or how is it that anytime we watch a business show on TV that the owners in the small to medium sector always highlight the marketing plan as the crucial element to success?
The answer lies in the fact that all businesses need marketing but that is not the same thing as saying that all businesses need to advertise or spend a fortune along the way.

In addition, Marketing is as relevant to the broker community as it is to the large drinks companies. All of us make our purchase decisions based on what we hear, see and experience of a company, its products, and the service we receive or the people we deal with over time. Surely then it is essential that any business strategy incorporates marketing planning and develops ways of influencing the customers decision to purchase their product over the competitors one.

Brokers operate in a very challenging environment. There are competitive pressures, regulatory and administrative burdens and all against a backdrop of tighter margins.

Broker businesses regardless of size or business focus need to have a well thought out structured relevant marketing plan. Such plans allow the broker develop a deeper understanding of their customers needs and how best to grow their business by matching the service provided to those needs.

Marketing plans provide a road map to successful business growth. They provide the business owner with a framework to make decisions, stay ahead of market downturns and anticipate changing customer needs. All in a way that watches the bottom-line and grows profitability.

This all sounds great in theory but most brokerages do not have the time or the people to develop and implement marketing plans. Brokerages need to be focused on gaining new business and employ others to administer their business, so it is a real challenge to stop and think about bringing marketing techniques into the business. The new regulatory regime adds to this problem also with an increased workload just servicing existing clients.


MarketBuild is a company offering outsourced marketing solutions to businesses that need to develop the marketing side of their business but do not have the internal resources or time to do it themselves.

So what exactly would a broker gain from developing marketing plans?

Well brokers like any other business need to firstly understand their customers intimately, and then match their product offering and service against the needs of those customers. This will lead to satisfied customers, repeat business and loyalty. Ultimately building a strong profitable business. The better this understanding is, the more targeted the marketing activity will be. This should result in more profitable sales and a control on expenses.
The financial fact find is an excellent way of building up a snap shot financial picture of a particular individual but it has its limitations. It doesn’t tell you how that person makes up their mind when purchasing products, it doesn’t tell you how many similar people are out there and how to target them for sales.

Introducing a marketing plan into the broker business can;

• Give the broker more insight into their customers, present and future
It can help the broker anticipate the changing needs of customers and put them in a position to respond to these needs by targeting the client base with the right offering at the right time at the right price
• It can help with increasing the awareness and visibility of the overall business and the products sold
• It can drive the development of the brand of the business if that is an important issue
• It can act as a guidance to staff as regards the principles and values of the business and how customers should be treated
• It can act as an excellent management tool to set objectives, plan activity and review results

So in summary a well developed marketing plan will give brokers much more than just good design and advertising. It will create a platform from which real business growth can be achieved.

In recognition of this unique fit that exists between the company and the broker market, MarketBuild has teamed up with PIBA and is offering a special package to brokers, which includes the first consultation free, and a 15% discount on fees thereafter for members.


First published The Professional Insurance Broker Magazine PIBA - Autumn 2005