Why Local Agents Have the Advantage Over “Big” National Competitors

Independent insurance agents often wonder how they can compete with national, big-budget competitors. In reality, local agents hold the key to what prospects want when shopping for insurance.

We’ve all seen the Medicare commercials featuring a famous former American football quarterback. And you wouldn’t be the first insurance agent selling Medicare to consider how you can compete with campaigns that have such extensive reach and deep pockets. The truth is, independent agents have the advantage over national competitors because consumers – particularly those in older generations – value the knowledge, accessibility, and personal service only local community members can provide.

Massive call centers, large lead generation companies and national insurance carriers have big budgets and can therefore invest in running a lot of ads on platforms like television. The truth is, however, that greater ad frequency is the only edge these organizations have over local, independent insurance agents.

Local agents have deep roots in their communities. They’re familiar with regional Medicare plans and often know the doctors, hospital networks, food banks, senior care facilities, gyms, etc. in the area. Local agents often have relationships with care providers, social security workers, pharmacy staff, fellow insurance agents, financial advisors, etc. Beyond being a knowledgeable resource, agents also have leverage over national competitors simply by way of their presence. Being able to match a name with a face and local phone number gives prospects confidence that the agent who lives around the corner can be their advocate for life through continued service year-after-year. Such a level of support is nearly impossible for a call center representative or online chatbot to achieve.

These advantages reveal that local, independent insurance agents occupy what marketers refer to as the customer’s “sweet spot.” This “sweet spot” is achieved when an individual or company can provide consumers with the product or service they want in a way that’s superior to the competition. The following diagram illustrates how independent agents are uniquely positioned to give customers the complete experience they want when shopping for a Medicare plan:

As a local and independent insurance agent, you are better positioned to capture more customers than national competitors. You have the product prospects need (a Medicare plan), can offer the variety of plans consumers have come to expect (just like national competitors and when contracted with a top ranked NMO), and you can provide the superior level of service, support and advocacy that consumers want. When you’re able to communicate this clear advantage in your own marketing materials, those TV spots promoting massive call centers become a little less annoying. After all, you are the real star in your community – just make sure your prospects know it!

As a National Marketing Organization that works with thousands of independent agents, we understand you must generate leads in order to grow your business. That’s why we work diligently to provide the resources necessary for successful marketing. If this information is valuable and you want to know more about the services we provide our Medicare agent partners, please contact us at marketing@berwickinsurance.com or 888-745-2320.

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