Sell More Insurance to SMBs: 5 Tips for Brokers & Agents

Small businesses make up 99.9 percent of all businesses in the US. For these 32.2 million small businesses, choosing the best benefits and health insurance for their employees is critical to attracting and retaining top talent. The problem, however, is time.

Small business owners often manage every aspect of their company: sales, marketing, HR, and more. They keep a close eye on every dollar that comes in and goes out, and selling to them can be a unique challenge for insurance professionals.

Not surprisingly, they want the best coverage for the best price, and are known to shop around. However, as any seasoned insurance broker or agent knows, price may attract a new client, but service is what retains them. In this blog post, we’ll discuss five strategies for how to sell insurance to SMBs—and how to keep them for years to come.

1. Understand the Small Business Landscape

To effectively sell insurance to small businesses, it is crucial to have a comprehensive understanding of the small business landscape. Research and analyze the specific industries and sectors you target. Familiarize yourself with the common risks and challenges faced by small businesses in these areas. By demonstrating industry knowledge and understanding the economic drivers of a client’s business, you can establish trust and credibility through a consultative approach.

The shortest path to sales success is a deep understanding of a customer’s needs. The surest path to customer retention is becoming a trusted business advisor. You should become their trusted advisor on changes in reporting, compliance, and other best practices. Even if they can find similar policies at a cheaper price elsewhere, your perspective and insights will be invaluable to their business.

2. Develop Targeted Marketing Strategies

Crafting targeted marketing strategies is essential to reach small business owners effectively. Identify the most suitable channels to reach your target audience, such as social media platforms like LinkedIn and Facebook, industry associations, local business events, and online directories.

Use your learnings from tip #1 to tailor your marketing messages to address the pain points and concerns of small business owners. Highlight the benefits of insurance coverage and how it can protect their businesses in the face of potential risks.

For targeting SMBs, few platforms are as valuable as LinkedIn. See our Comprehensive Guide for Selling Health Insurance on LinkedIn for step-by-step instructions on how to reach the right customers with the right message.

3. Provide Educational Resources

Small business owners don’t start their business with the goal of becoming experts in benefits and insurance. This is why they need you. The best way to get them up to speed is through short educational resources. These are busy people, so you’ll want to get the most important concepts across quickly.

Some topics to consider covering are:

·  Basic insurance concepts

·  Coverage options

·  Tax credits

·  Risk management

Make sure to use plain language and avoid industry jargon where possible. Also, try to make it niche or industry specific rather than customer specific. This will allow you to reuse pieces of content versus having to create net new for each prospect.

Mix up your format. Some people may prefer video while others like short written content or infographics that can be easily scanned. If design or writing isn’t your strong suit, try a freelancer marketplace like Fiverr to find someone to help you. Before committing to a specific freelancer, make sure to read their reviews and ask for samples of their work.

4. Stand Out from the Crowd

Small business owners are often price-sensitive, but competing on price alone is a race to the bottom. Plus, when you win based solely on price, that’s a customer who is going to shop around every year. Instead, implement a value-add that your competitors can’t match.

This can be exceptional service, offering advice beyond your normal scope, or providing their employees with an educational resource that helps them get the most out of their benefits. After all, happy employees equal happy employer.

Some insurance brokers and agents opt for an online resource employees can access 24/7. This allows them to provide exceptional, unmatched service without draining all their time. If you’re considering this approach, check out the SwellSpace no-code website builder. It was created specifically for this use case and gives benefits professionals a unique differentiator employers and employees love.

Savvy insurance brokers and agents are currently using SwellSpace in two very impactful ways: 1.) as a digital brochure/educational space presale, and 2.) as a self-service benefits education resource for employees after the sale. 

5. Leverage Referrals and Testimonials

Referrals and testimonials can significantly impact the decision-making process of small business owners. Encourage satisfied clients to refer other small businesses to you. Offer incentives for referrals, such as discounted premiums or added coverage. Something as small as a Starbucks gift card can go a long way to show your appreciation for their word-of-mouth marketing.

Additionally, showcase positive testimonials on your website, SwellSpace, and social media platforms to build credibility and trust with potential clients. For testimonials, encourage your customers to talk about the impact your services and consultative approach has had on their business.

When possible, aim for concrete numbers (money and time saved, decreases in employee churn, etc.). Make your testimonials about how great your customers’ business are doing—your service just helped accelerate their growth.

Selling insurance to small businesses requires a tailored approach that addresses their unique needs and challenges. By implementing the five strategies outlined in this blog post, insurance brokers and agents can increase their chances of successfully selling insurance to small businesses.

Understanding the small business landscape, developing targeted marketing strategies, providing educational resources, and leveraging your current happy customers are key to establishing trust and credibility. Remember, selling insurance to small businesses is not a one-size-fits-all approach. Adaptability and continuous evaluation of your strategies will help you thrive in this dynamic market segment.