How Niche Marketing Worked

Small business is alive and well, despite the gloomy, reports we read about the weak national economy. To be more specific, small businesses started by ethnic minorities is booming. The niche where we have first-hand experience with this phenomenon is the Hispanic marketplace. But this phenomenon is apparent with almost any ethnic group.

Despite the negativity that many business owners are expressing, first-generation immigrants still believe in the American Dream. They believe with hard work and a little luck, they can start a company with limited resources and grow their company into something extraordinary.

Opportunities sometimes define strategy, and independent insurance agencies need to be open to opportunities. Speculative activities are also sometimes needed in any business. When we decided to pursue the Hispanic market, we were not sure if this was a prudent decision. Often, ethnic minorities live in and set up business in “stressed” areas, sometimes more susceptible to crime and other perils than the more homogeneous bedroom communities where our agency traditionally sought new business.

Agencies like ours sometimes have to think ahead. We must ask ourselves, “What will the market demand of us in the future?” We made a business decision several years back to target the fastest growing community in America to grow our business within this community and establish ourselves as leaders in the Hispanic marketplace.

There are six practices you can do right now to enhance your presence in the ethnic marketplace.

1. Decide which niche you want to develop. For us, it was not an obvious decision. Founder Douglas Soderberg had a strong life insurance background and was the youngest general agent appointed at the time for Aetna Life & Casualty. When he founded Soderberg Insurance in 1968, the logical business development strategy was to target small manufacturing businesses, and our reputation as an authority in a particular market had not yet been established. It was many years later that we started to realize how we needed to focus on a particular market.
2. Do your homework. Follow trade magazines to see what trends are developing in the marketplace. Follow the local news. As we have always been told, listen to your customers. They are the greatest source of information and ideas. If you listen, you will learn from them the path that business is taking.
3. Examine behaviors of those agencies that have not just grown their business, but have followed a strategy for getting there. What did they do that worked?
4. Train staff on the agency mission. Train staff so that they, too, are experts in the market that you want to develop. Our staff, both Spanish-speaking as well as non-Spanish-speaking, always come up with suggestions on how to do things better. Exceeding customer expectations is easier when the staff is on board and recognizes the greater mission of the agency. We can more effectively sell and service the modern diverse consumer in the language and custom that he or she wants to be serviced.
5. Recruit CSRs and producers that bring the “right attitude” with them, as well as diversity. Exceeding client expectations is always easier with the right attitude. Good service creates great referrals. Our Hispanic clients regularly refer us like no other customers. Every insurance agent is told, “ask for the referral.” Also, a diversified leadership can help. In our case, Soderberg Insurance has non-traditional leadership. We are a woman-led business. When agencies have women in leadership roles, it brings different perspectives and innovative solutions. Diversified leadership leads to enhanced financial performance.
6. Market, market, market … the old fashioned way. Benjamin Franklin once said, “Without continual growth and progress, such words as improvement, achievement and success have no meaning.” Establish yourself as an expert in a marketplace. Keep track of your results. Be sure to promote yourself on your Website and in your marketing materials as an expert in your particular area of expertise. Gradually, your reputation will speak for itself. We are asked to speak regularly at business seminars, first-time home buyer seminars, radio programs and on public television.

What strategy is your agency following to ensure continual growth and progress? Today, stagnation is not an option: you need to grow.

Topics Agencies