Target Practice

“If you don’t know where you are going, any road will get you there.”

Lewis Carroll might have been referring to agency investment in customer and prospect marketing.

It’s not that agency owners aren’t spending money—it’s that the payback seems fuzzy.

But without an annual, written, strategic plan that includes agency business goals, target audience sets, key messages, media selections, timeline and metrics, it’s no wonder marketing impact is unclear.

Even exciting new digital marketing tools are more effective if you first agree on goals—and the more specific, the better. A realistic goal in 2014 might be to improve customer engagement on Facebook, and boost referrals and cross-sell opportunities by certain percentages. Other potential goals might include:

• Build/maintain brand awareness
• Expand to a new target market
• Attract younger buyers
• Penetrate current markets more deeply
• Retain and cross-sell valuable customers
• Introduce a new capability (life, benefits, HR consulting, etc.)

If your firm implements a sound communications strategy, you’ll be able to measure success in more ways than one. Think creatively. Some metrics aren’t related per se to real money, but can be precursors to new sales and revenue, including short- and long-term goals:

• Customer praise and positive word-of-mouth
• Media mentions and impressions (ads or articles)
• Website visitors
• Social media mentions, followers, friends, views
• Blog comments
• Delivered and opened emails and click-throughs from campaigns
• Phone calls, quotes and referrals

Also, track the plan against financial goals. For example: close rate, net new customers, policy count per customer, retention, revenue per employee and profit margin.

The key? Look at related spending not as an extra expense, but rather as a highly valuable way to build agency value. When well-crafted, communications campaigns are investments, not expenses.

Peter van Aartrijk is the CEO of insurance branding consultancy Aartrijk.

Insider Tip: How much should you spend on communications activities?

The Big “I” Best Practices agencies invest 1–3% percent of annual revenues. Larger firms spend closer to 1–2%; smaller ones, 2–3%. That means a $1-million Best Practices firm invests $20,000 to $30,000 each year.