Have it. Spend it. Track it. Marketing ROI & the Top 5 Areas to Invest
Marketing ROI & the Top 5 Areas to Invest
Other than payroll and rent, the largest line item on your expenses - and what you should consider an investment in your agency - should be your marketing expense. Club Capital clients have already spent upwards of $100,000 in marketing in 2017 alone! While preferences can vary by agent, the Small Business Administration recommends that business owners should expect between 5% - 8% of total Revenue to be spent on marketing to ensure continued market growth and customer acquisition.
Club Capital Clients have already spent $100,000 in marketing in 2017
TIP: Savvy marketers will be constantly experimenting and A/B Testing. You should test, test, and retest to see what works. What tweaks can you make to get you a better ROI?
“Don’t fix what ain’t broken” is great, but make sure you cut any expenses that are broken. If you are not getting ROI out of a marketing expense you should seriously evaluate the cost and determine where it should be reallocated.
So, what Marketing Expenses Should You Try?
Insurance agents should be active in the following categories - at least to experiment the return and find out their sweet spot:
- Internet leads (Facebook, Twitter, Yelp, etc.)
- Direct-mail (postcards)
- Search Engine Optimization (SEO)
- Paid Leads (marketing lists)
- Media & Signage (billboards, radio ads, bus signs, etc.)
As your processes improve, the emphasis with your team should be to shift incoming business from paid advertising, or the highest cost of acquisition, into the lowest cost of acquisition advertising which in most cases are your client or community-based referrals.