Fewer industry categories have gone through more turmoil and change to their selling strategies and channel management philosophies in the last decade than financial services and insurance.
Media spending levels are at record highs as corporate emphasis shifts to the flavor du jour, direct-to-consumer (DTC) sales model in anticipation of the implications of the Affordable Care Act and lingering individual investor unrest from devastating losses.
What seems to be lost in the chase to acquire customers and clients in the DTC model are the channel intermediaries. In many financial and insurance companies, support of the channel partners — financial advisors, producers, brokers and agents – is waning.
Treating these audiences as an afterthought has the potential to lead to disastrous implications in the future. What is your channel management strategy and philosophy? Are they allies or adversaries? Intermediaries need to be viewed as an extension of your brand and business. The best companies view this dynamic as being a harmonious mix where it’s all about both the numbers and the brand. It’s a delicate balance that requires well-orchestrated programs that clearly render that you’re covering their back.
It means embracing your channel partners rather than holding them at arm’s length. They’re the ultimate extension of who you are and what your brand stands for. They deliver on that every day.
The engagement goes beyond “likes” or 140-character Twitter snippets. Their voice is powerful and respected and not currently being sufficiently embraced in this new direct-to-consumer marketing paradigm. Think of channel partners as brand ambassadors.
Channel marketing strategies need to be viewed as a forethought, not an afterthought with minimal effort placed against it once the new brand campaign is launched. Channel partners should be an integral element in the development of branding strategies and campaigns.
Invite them into the upfront development process — they have in-depth knowledge and understanding of the voice of the customer. It is the critically important first step in gaining channel buy-in and ownership based upon having brand messages and channel goals being totally in sync. What’s often lacking is an educational sell-in and sell-through philosophy when it comes to brand and marketing programs. It’s the “build it and they’ll sell it” mentality of many brands that’s so pervasive.
This thinking leads to marketing programs ending up as trunk ballast or door stops at channel partner locations. Many channel intermediaries represent and sell multiple lines and brands. They’re expected to know a lot about a lot. The best approach is the implement an “educate them and own them” strategy that brings your brand closer through education that talks with them, not at them.
Insurance and financial services products are extremely complicated and fraught with compliance and regulatory jargon. Helping your channel partners to navigate these mine fields is paramount. You can’t take for granted that they’ll actually read the materials or embrace the new brand strategy. Treat the channel as an audience.
One that is as important as the ultimate buyer and consumer. Ask yourself, how loyal are your channel partners? Do they reach for your product when they’re putting together an insurance RFP response or developing a financial plan?
Brand loyalty and preference extend beyond incentive trips and spiff programs. Channel partners work with the brands they know inside out and who support them the best. Make them part of your brand family — the culture and the values. They’re an extension of the company that decides on a daily basis whether to present or pitch your products, or not!
Going deeper on an engagement level with the channel in today’s fragmented world is more important than ever. It used to be that having a marketing portal was enough. Today, channel partners require programs that are revenue drivers, not lead repositories.
Customer relationship management tools that offer superior marketing metrics and return, content for repurposing, and tailored e-marketing are now the price of admission. Think of it as both brand and sales engagement and involvement. Brands that embrace this philosophy will ultimately be the winners in the channel game.
The key is letting channel partners into all aspects of your business. Go beyond yearly rep council meetings or dinners at industry trade shows. Live the business of your channel partners. Understand their challenges, feel their pain and help them sell your brand and product more effectively.
Bill Field is the founder of FieldActivate, a Connecticut-based marketing firm. He is the former president of Mintz & Hoke in Avon.
