Marketing is a major part of an annuity agent’s focus when trying to identify potential clients, with many agents emphasizing home ownership, marital status, and other demographic cues to generate business. But recently, some annuity agents have taken to a different strategy: psychographic marketing.This type of marketing hones in on lifestyle, values, interests, and more […]
Rettich explains that the benefit of this kind of outreach is increased efficiency, as well as monetary savings. Instead of marketing to an entire section of a city, agents can put their money into pockets of town that are more likely to work with them.
“Analytics and demographics are useful tools in targeting potential customers, but annuities sales, like all sales, rely heavily on a 1v1 interaction to successfully identify the needs of an individual,” says Todd Albert, CTO of Sell My Annuity. ”I think this type of marketing is good way of identifying new potential customers, but the ultimate sale depends heavily on the agent working close with his/her client to accurately understand their needs and objectives.”
To test out their hypothesis, Rettich’s team sent out two different advertisement mailings, one solely targeting individuals that matched particular demographics, and another that only went out to people identified as potential clients through psychographics. They discovered a higher response rate with the latter strategy, as well as a positive return on investment, compared to the former method, which lost the company money.
While psychographic marketing has yet to take over as a preferred sales tactic, and more studies need to be conducted to find Rettich’s firm’s findings more conclusive, psychographic marketing may ultimately become a useful strategy for annuity agents on a national scale.
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