Refocusing Your Marketing Strategy During a Recession

Anticipating a potential recession in 2023, insurance marketers face the challenge of navigating uncertain economic conditions. While experts predict a recession, recent reports indicate that its onset might be delayed due to the economy’s resilience. Still, the possibility of a recession weighs heavily on both consumers and marketers.

In times of economic uncertainty, consumers tend to tighten their budgets and become more selective about their spending, making it imperative for insurance marketers to adopt innovative strategies to stand out from the competition.

UNDERSTAND WHAT CONSUMERS WANT AND NEED DURING A RECESSION

Understanding your target audience and their specific needs is crucial when selling insurance, especially during a recession. It’s essential that you tailor your approach and messaging accordingly to capture their attention and address their concerns.

Because consumers may be worried about spending, it’s of paramount importance to showcase the value and cost savings your insurance policies can offer. Focus on the sense of security and peace of mind that your coverage can provide. Highlight how your policies protect their assets, mitigate risks, and offer financial stability during uncertain times. Emphasize the significance of insurance in safeguarding their well-being and easing their worries.

Provide Exceptional Customer Service

Providing outstanding customer service becomes even more essential during a recession. Ensure that your existing customers receive top-notch service to enhance their loyalty and advocacy. Happy customers are more likely to refer your services to their friends, family, and colleagues, expanding your customer base. Utilize customer feedback and surveys to improve your processes and address any pain points promptly. Positive word-of-mouth recommendations can be a powerful driver of new business, especially during challenging economic times.

Offer Customized Insurance Solutions

One size does not fit all when it comes to insurance. In a recession, consumers may have unique coverage requirements and specific financial limitations. Insurance marketers should offer customized insurance solutions that cater to these individual needs. Provide flexible policy options, personalized pricing, and adaptable coverage plans that align with customers’ changing circumstances. Offering tailored solutions demonstrates empathy and understanding, fostering trust and loyalty with new customers.

Target Specific Demographics

Consider how the downturn might affect specific groups of consumers based on their stage of life. Anticipating these effects can help you proactively address issues these consumers may face before they turn into bigger problems – building trust with your insurance brand and, likely, long-term loyalty. Marketing efforts in these areas could include:

• Creating video content on platforms like TikTok, Instagram, or Facebook that compares product offerings to help Gen Z consumers make confident insurance decisions and shows how products are relatable or applicable to their lives.
• Ensuring your website and online tools are mobile-friendly and responsive. Younger generations heavily rely on their smartphones for information and transactions. Streamline the user experience, enable online quotes and applications, and provide convenient self-service options through mobile apps to cater to their preferences.
• Being transparent and authentic. Younger consumers appreciate openness and honesty. Provide clear and concise information about your insurance products, pricing, and terms. Clearly communicate the benefits, limitations, and potential risks associated with the policies.

It is also important to think about your customer segments according to how they might respond to a recession in ways not defined by traditional demographics like age or income level. Speaking to your customers with empathy and understanding will help build trust and rapport. Regularly reassess your marketing strategy to ensure your messaging, products, and services meet your audiences’ needs, priorities, and interests as they shift – or don’t – with economic instability.

CHOOSE MARKETING CHANNELS WISELY

Recession-proofing your marketing efforts – and your insurance brand’s customer relationships – means focusing on marketing opportunities that don’t overextend your budget. Be selective with paid or sponsored marketing engagements and focus on communicating and enhancing relationships through social media, blog posts, and other content focused on insurance coverage that responds directly to your customers’ needs, anxieties, and pain points.

Speak to Your Audience

Personalized marketing is another way to ensure your marketing budget is being directed to campaigns and communications that reach your audiences and respond to their needs. In tight financial times, your focus should be on showing consumers that your guidance, products, and services are the best solutions for their needs – and hold the most value in the current market.

Invest in Local SEO

For many insurance brands, investing in local search engine optimization (SEO) is a smart move, as it’s a low-cost way to see what products, services, and advice people in your service area are searching for through Google – and then engage with those local consumers who are looking for what you can offer. To improve your presence in local search results, you can:

• Set up your Google Business Profile with your insurance brand’s name, address, and phone number to ensure you appear to consumers in your area.
• Upload photos and videos to your listing to illustrate the value your services and products can deliver to these audiences.
• Request customer reviews, as the number of reviews affects how Google will rank you in local search results, AND it will show potential customers that current ones trust you.

Recognize the Value of Video

Video testimonials by current customers, demonstrations of products or services, and answers to common insurance questions provided by your experts are great ways to show your value to current and prospective customers. Share video on your website and social media accounts and in email campaigns to show how you can add value to customers’ lives, especially in uncertain times. No budget for a full video shoot? Get creative with filming through Zoom/Teams or having the customer self-film on a smartphone. Raw video content can be more powerful than polished content on social media.

Reach Customers With Remarketing Ads

Engage with people who have already visited your website or social media accounts through remarketing ads on Facebook and Google. Since these ads only appear to people who have sought you out in the past, the consumers who view them are more likely to remember your brand, increasing the chances that they will engage with you again. Again, remember to target these ads to your audiences’ needs and pain points and provide helpful content like informational blog posts and comparison guides to build trust.

Need guidance in recession-proofing your insurance brand’s marketing strategy? Contact LIGHTSTREAM for help in choosing the right marketing channels and pivoting your messaging so you can continue to grow your customer base, deepen relationships, and build your brand.