In the insurance business, as in all businesses, there are two basic types of marketing solutions: outbound and inbound. Each of these types of marketing have their own pros and cons, but the insurance industry has been moving steadily away from outbound marketing and toward inbound marketing over the past decade or so.
This is a move many companies have been making with the advent of inbound marketing and findings about its high rates of success. In this article, we’ll discuss both types of marketing, get you familiar with them, and then ask the question: is outbound marketing dead for insurance companies? Finally, we’ll talk about how inbound marketing can help your insurance business succeed over the long haul. Read on!
What is Outbound Marketing?
Outbound marketing is, put simply, marketing that is initiated by your insurance company. Outbound marketing consists of a message you send out (by phone, media, or email) to clients and prospective clients. Overall, outbound marketing is the more traditional sort of marketing you may be familiar with: television commercials, radio advertisements, newspaper ads, brochures distributed at trade shows, flyers, even catalogs that detail your insurance offerings. Another major component of outbound marketing is the cold call -- a staple of insurance companies in the past.
The problem with outbound marketing is that it can feel impersonal to clients and prospective clients, and cold calling is difficult for everyone involved. Enter inbound marketing, the wave of the future.
What is Inbound Marketing
Inbound marketing is a new type of marketing with a new focus that almost all businesses are now using, including insurance businesses like yours. Inbound marketing consists of paid search marketing, content marketing, and opt-in email marketing. You may know and use inbound marketing techniques already in website content, blogs, SEO methodology, and emails you send out to prospective clients or existing clients that they must “opt-in” to receive each week or each month. Your company may send out newsletters through email marketing. If you aren’t using these inbound marketing tactics, you should be.
Is Outbound Marketing Dead?
Good question, and we’re glad you asked it. Jayson Demers of Forbes notes that a business should consider the following four categories when deciding on outbound or inbound marketing techniques (and don’t let anyone tell you both can’t be used):
Cost. Obviously, if one lead is cheaper to obtain than another, your company should go with the cheaper lead.
Time. Consider how long it takes to generate the lead, and go with the shorter time.
Volume/sustainability. The long haul -- which marketing method will get you more leads over more time?
Closing potential. How specifically targeted is the lead -- will it be easier to close?
All these considerations should go into designing your marketing plan, which should be geared toward your target audience -- the people most likely to purchase your services or products. Let’s take a closer look at inbound marketing and how it can help your insurance business.
How Can Inbound Marketing Help Your Insurance Business
There is no question that many insurance companies still use outbound marketing, but adding inbound marketing to your campaign can greatly reduce your business’ costs while increasing the time you, your agents, and your marketing team have to focus on the leads you have. Here are some statistics for you to consider:
Inbound marketing tactics cost 61% less than outbound tactics.
Outbound marketing generates leads faster than inbound.
Inbound marketing has a higher volume potential over the long haul.
Inbound marketing yields more leads per dollar.
84% of young adults have left a favorite website because of intrusive popup ads.
Inbound leads create “warmer” leads, or people who are already interested in your product and are ready to buy.
While there are advantages to both types of marketing, and outbound marketing is clearly not dead yet, inbound marketing has an edge over outbound. Smart insurance businesses will have both types of marketing in their campaigns, and use them at the right times. For guidance on the best marketing techniques and how to use them for your insurance business, reach out to Hult Marketing.
We will help you segment your existing database and identify audiences that you can expand your reach with and engagement more with. We will help you find missed opportunities, lost opportunities, and active prospects. We’d be happy to teach you all that we know, and keep your insurance business thriving and generating warm leads.
Let's chat and put the Hult Team’s experience to work for you. Feel free to reach me at 309-673-8191 or firstname.lastname@example.org, and together, we can grow your insurance Brand.