The UK lockdown has presented a unique challenge for brokers trying to get new business
The Covid-19 pandemic has exposed the over-reliance that brokers have on price comparison websites for lead generation and customer acquisitions.
This is according to Beyond Clicks – an insurance digital marketing firm, it found that during the first lockdown last year, 70% of brokers said they experienced a drop in new business which was worsened by the spend on adverts for price comparison websites being cut.
However, by taking back control of marketing strategies, brokers were able to overcome this and generate sales despite lockdown conditions.
Beyond Clicks, founder Steve Tarbard told Insurance Times: “Many brokers face the challenge of over reliance on third parties such as price comparison websites and lead purchase as consumers are faced with a multitude of different broker products, while the lead generation company is the brand remembered by the end consumer.
“And with the aggregator or lead generation company holding the customer data, the broker is unable to carry out its own direct marketing, making retention at renewal a distant fantasy.”
It follows lockdown continuing in the UK as cases of Covid-19 and in addition those contracting the new variant of the virus soaring.
Shift in landscape
Under the current climate, the benefits of such a strategy are becoming even clearer, Tarbard explained: “The Covid-19 pandemic has changed the landscape considerably.
“At the beginning of the first lockdown, brokers were experiencing a 70% reduction in new business volumes, exacerbated by the aggregators and other lead generation companies slashing ad budgets and overall marketing spend.
“While the market has picked up since then, brokers who remain focused on price comparison websites are at a disadvantage.
”Those businesses who are in control of their own marketing are therefore able to turn this to their advantage by advertising directly to those customers still looking for insurance products.”
Balance of power
Relying on price comparison websites restricts brokers’ business to the marketing activity of these websites as well as reducing them to a cost-per-sale pricing model which is favoured, according to Beyond Clicks.
Tarbard said: “Our role as the industry experts is to change this and shift the balance of power back towards the broker, whether that be via tailored pay-per-click advertising campaigns, user journey optimisation, or using in-depth competitor analysis to stay one step ahead of their rivals.”
He advocates that brokers use services that allow them control over their own marketing strategies.
Beyond Clicks works with brokers of all sizes to reduce their reliance on aggregators and lead purchase channels by producing a tailored marketing blueprint.
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