Insurance companies are always interested in finding new ideas to best their competitors. “Renewals and new business presentations are taking place all year,” said Kendra Bringman, director of marketing and sales for The Leslie Company, Olathe, Kan. Insurance companies make pitches to people and corporations season after season, and this constant marketing requires a constant stream of promotional products. Whether it’s products that will be useful in a bind, like ice scrapers and windshield shades, or products that illustrate the professionalism of the company, like custom folders and presentation materials, insurance companies aim for new and interesting products to attract consumers and outdo their rivals.
The recession has interfered with the battle between insurance companies as they fight with their budgets and not each other. Though the economy has improved, insurance companies are still having difficulty reaching out to consumers. “Their clients (people like you and I) are pulling back on insurance. This has forced them to evaluate their budgets and ensure maximum return on investment for each dollar spent,” explained Jim Hanika, co-owner of Proforma Amplified, Grosse Pointe Farms, Mich. The significance of every dollar means that promotional products are more necessary than ever. On the following pages, suppliers and distributors offer insight into the differences between big and small insurance companies and the best way to market your products to the recession-impacted industry.
LARGE VS. SMALL
Insurance companies are regularly looking for new marketing opportunities, whether the company is big or small. Yet, the options for companies change depending on their size. “The size of the orders [from large and small companies] will be very different but the product mix is similar,” said Phil Harris, vice president of sales and marketing for Crown Products, Mobile, Ala.
According to Jeff Lederer, executive vice president of Prime Line, Bridgeport, Conn., the funds of national insurance corporations allow them to order more frequently throughout the year, which means their products circulate more than products from local and regional companies. “Larger companies are also interested in some of our custom-sourcing items like bobble-heads and puzzles, which are very detailed and customized to their requirements and services provided,” said Lederer. Because large companies have more available capital, they are able to order items designed to their specifications.
But what about smaller insurance companies? Local providers have a fraction of the budget, but they still need promotional products. According to Hanika, regional companies, unlike larger corporations which rely on marketing through national ad campaigns, depend upon local sponsorships and trade shows. Smaller companies sell their insurance through insurance agencies, rather than the direct marketing approach that larger companies take, making promotional products even more elemental in their marketing strategy. Consequently, well-placed promotional products are essential to their success.
AUTO INSURANCE PRODUCTS
Instead of being downtrodden over the economic crisis, companies and agencies that sell auto insurance have used the recent recession to hone in on the ideal products for their marketing needs. The most common technique for promoting auto insurance is through auto-related products, such as ice scrapers and key chains. Lederer explained that the goal is “to tie the promotional product back to the car or truck itself.” For example, an insurance company might use an ice scraper for their promotional needs during the winter. With a sizable imprint area and ability to fend off unwanted winter frigidity, the affordable item is useful for the company and consumer. “Key tags that offer an imprint of the auto insurance company’s logo, website or phone [number] for quick and handy reference in the event of an accident [are popular],” he added.
Auto-related items are not the only favored promotions for auto insurance. “It is often more about corporate colors and the perceived value of the item rather than being strictly automotive related as a requirement,” noted Harris. Commuter mugs, for example, are great for showcasing corporate colors. “[They] are convenient for business travelers who drive many hours to an appointment or hop on a train,” Lederer said.
LIFE INSURANCE PRODUCTS
It is no surprise that life insurance is a leader in terms of promotional product sales—it is one of the most popular forms of insurance, and requires the most visibility. “Life insurance seems to control a larger portion of the dollars spent,” said Hanika, and it seems to trump other lines of insurance due to the need for custom presentation materials like folders and stationery, as well as brand-showcasing products like tote bags. Bringman commented that life insurance companies are constantly presenting their information to prospective clients in an organized manner to attract and keep their business. Folders and binders are popular for this purpose as well as for their customization options, which include color, size and numerous other additions such as business card slots.
On the product side, the interests of the life insurance industry vary year to year. Recently, water bottles have increased in popularity as insurance providers sponsor more walk-a-thons. “They like to hand out promotional products at public events,” said Lederer. These walk-a-thons are effective publicity for the insurance industry because of the vast amount of foot traffic. “It’s a useful product that leaves a lasting impression,” Lederer stated.
