We often become so comfortable in our endeavors that we begin to take them for granted. We assume that we know all that there is to know about our clients, our competition, even our products and services.
However, it’s at the moment of peak self-assuredness that we begin to lose our edge and miss powerful opportunities.
That’s why market analysis should be a routine element of your business process.
A thorough market analysis provides independent insurance agencies with more than a target market. It also identifies:
untapped market requirements
lucrative areas to offer a new product or service
means for expanding your agency’s market through innovation
direct, indirect, and even prospective competition
profit opportunities that have not been capitalized on by competition
To conduct a market analysis that yields the greatest benefit to your insurance agency, evaluate each of these areas:
Understanding the scope of your market provides a context for marketing strategies. You can analyze the boundaries within which your agency works using three different parameters.
Similar agencies
Which other agencies are offering similar services or products as yours?
Competing products
What similar or substitutive products or services are available to your prospects?
Innovative technologies
Which technologies are available that give agencies and products a leading edge?
Next, consider the individuals who make up the insurance buyers’ market. Identify common characteristics among policyholders and prospects using hard data collected through surveys and research.
Ask current policyholders why they chose your services and products.
Determine external factors, such as government requirements, that contribute to insurance decision-making.
Segment your target markets into sub-groups by identifying differences among larger groups.
Identify new or untapped market segments.
The insurance industry has undergone tectonic changes during the past decade, and the shockwaves are still reverberating. Taking time to analyze the industry as a whole on a regular basis gives independent agencies enhanced abilities to anticipate future changes.
Assess other agencies within the industry to measure growth and potential.
Stay abreast of changing trends and market practices.
Evaluate strengths and weaknesses of the industry.
Look for gaps in current industry products and processes that can be exploited for innovations.
The insurance market is continuously growing with new competition carving its own path through industry boundaries. A healthy respect for and a researched understanding of key competitors gives you a better understanding of your own position in the industry.
Assess the strengths, weaknesses, and unique value of competitors.
Identify indirect and potential competitors.
Evaluate their marketing and sales strategies.
Appraise their technological advantages or disadvantages.
Naturally, no market identification is complete without reflection. Take time to determine your independent agency’s position in the current insurance market as well as your market potential. As you do, consider ways to add unique value to your marketing strategy. While being cost-effective or customer-oriented are each admirable goals, they will not differentiate you from the competition.
It’s highly probable that as you undertake the market identification analysis, you’ll discover opportunities for growth, for added value, and for innovations that will set you apart from the competition. At AgenciesOnline, we work with independent insurance agencies to tap into that market and take full advantage of it through powerful marketing strategies. Get in touch with our award winning experts today to learn how.