At Broker Buddha, we're all about helping agents become the best versions of themselves by streamlining their digital processes, improving operational efficiency, and increasing client satisfaction. Those who achieve this are—what we like to call—'Enlightened Agents.'
However, this process is easier said than done. Therefore, we've created the Enlightened Agency pyramid, which has four levels to guide agencies on their journey to digitalization and ensure they follow best practices.
Let's dive into level one.
Why Segmentation Is Important
As we all know, insurance isn't a physical product; it's not something you can touch and hold.
However, even though it may feel intangible, amorphous, and expensive at the time of purchase, customers are buying security.
When customers spend a lot of money for a product they can't even see, it's understandable that they'll want to buy from an expert in the field whom they can trust and who understands their business. And this level of expertise and knowledge can only come from specialists.
A report from PWC named ‘Trust: the new currency for business’ found that 91% of customers said they would buy from a company that gained their trust. And another 71% stated they’re unlikely to make a purchase if they lose confidence in a company.
Customers want their agents not just to understand their business but to serve as risk managers who can advise them on what they could be doing better and ways to protect their homes, cars, or business—which would decrease their premiums and improve their coverage.
How To Segment Your Customers
One of the best ways to segment your customers is through industry verticals, such as healthcare, construction, and transportation. Clients appreciate working with expert agents who understand and can navigate the intricacies of their industry. This expertise translates into better advice, more comprehensive policies, and, ultimately, greater peace of mind.
Another effective way to segment customers is through their location. Being in the same time zone or local region as a substantial proportion of your customer base improves speed and efficiency as there is no delay in communication. An agent who lives and works in the same geographical area as their clients is likely to have an understanding of the local nuances, regulations, and challenges that their clients face. For example, if a flood warning is issued, agents in the area could be ahead of the game and message their customers, letting them know they are there to provide policy information and advice.
Lastly, being able to meet your clients in person can have a big impact on success. Agents operate on trust and loyalty and there are few better ways to build trust and loyalty beyond good old fashioned face time.
Wrapping Up
Organizing an insurance brokerage through thoughtful customer segmentation, particularly geographical locations and industry vertices, goes beyond just efficient business operations—it's a strategic move that can deeply instill trust for clients. In a world where personalization and expertise are highly valued, adopting level one of the Enlightened Agent Pyramid ensures that you understand your client's unique needs and are well-equipped to cater to them.
Once you've organized around customer segments, you're ready for Level 2 - Standardizing Core Systems.
Are you interested in becoming an Enlightened Agent? Contact us today and learn how Broker Buddha can help you deliver an unrivaled digital client experience.
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