“Quick, we need to promote this new product; let’s get an ad out, we need activity on this today!” Or perhaps, “We really need to recruit more producers, let’s start doing a little advertising.”
Unfortunately, for some marketing organizations and distributors, this is how their marketing department is being run and how critical marketing decisions are being made day after day, month after month, year after year.
“The most important functions of a business are marketing and innovation. EVERYTHING else is an expense.” – Peter Drucker
It is all too common that Marketing Organizations (MO) and BGAs conduct “new” producer lead generation as a series of isolated activities and are frustrated by the results—an ad here, a direct mailer there, a tradeshow here — with little continuity or overall strategy. Your marketing has to be deliberate or it’s useless.
To grow bigger, faster and be stronger, marketing organizations must continue to attract NEW producer leads into their recruiting funnel. To create the ultimate recruiting machine, you must utilize multiple channels so you can drive a steady flow of NEW prospective agents. Since, different types of media will always produce different results and attract different types of producers, it is always wise to utilize multiple channels.
The most successful and rapidly growing organizations know they have to keep their pipeline full by continually adding new prospects, while continuing to work with current and past prospects. They know that they have to be EVERYWHERE their ideal producers are; whether it’s online, email, search engines, direct mail, or industry trade magazines. They are also fully aware that if they aren’t in front of the marketplace (and current producers), their competition is.
A Marketing Organization’s number 1 priority should always be recruiting. The saying rings true, “no producers, no business” (and no profits). Just because you have a producer contracted doesn’t mean that they will write business with you or stay with you for decades. In order to maintain your current sales force, you have to continually be recruiting new producers just to keep up with the natural attrition within our industry.
Sadly, many marketing organizations don’t know what the Lifetime Value (LV) of a producer is to their business. Nor do they know what it costs them to recruit a new producer.
If you are among the few who do know, it makes it much easier to determine not only what you spend on marketing, but how to calculate the services, value-adds and incentives used to recruit producers, retain them longer and prevent them from ever leaving your company.