Marketing Strategies for Employee Benefits

[jmarkk1]

I was wondering if you guys might give successful marketing tips when approaching small businesses under 30 employees.

I'm aware of the whole cold calling thing, but I have to believe there's a better way.

Also, is there a way to position yourself to a company as the one that they refer their employees to if they need additional insurance? (without going through payroll)

 

[ABC]

I have been selling group for 13 years and I have yet to find the easy way. The **** I have to go through to get a case still amazes me. The recession has not helped matters.

 

[jmarkk1]

I have been selling group for 13 years and I have yet to find the easy way. The **** I have to go through to get a case still amazes me. The recession has not helped matters.

I'm not looking for the "easy" way, but rather the way that works regardless of how hard it might be.

Also, is there a way to cut through the preconceived ideas? I'm mainly wanting to do everything apart from payroll. So, I'm basically wanting to be the guy that the employees come to for more life insurance, retirement, etc.

 

[ABC]

I'm not looking for the "easy" way, but rather the way that works regardless of how hard it might be.

Also, is there a way to cut through the preconceived ideas? I'm mainly wanting to do everything apart from payroll. So, I'm basically wanting to be the guy that the employees come to for more life insurance, retirement, etc.

My thing has been to specialize in health insurance and employee benefits. You sound more like personal services.There is a big difference when it comes to employee benefits.

It sounds to me that you are more of a financial advisor.

 

[HRExpert]

Just a thought, most small companies use payroll services such as Paychex, ADP, Paycor etc. Their market is the same as your market. With statistics showing that 95% of the small companies being satisfied with their insurance brokers, you have to fight for the 5% that are looking to change.

Working with a few payroll companies can get you the referral into the groups you are looking for. Once referred by a trusted source, you are in.

 

[somarco]

95% of the small companies being satisfied with their insurance brokers,

I wonder where you got that stat. Many small companies have no idea who their broker is.

Perhaps defining a "small" company might help.

 

[jmarkk1]

My thing has been to specialize in health insurance and employee benefits. You sound more like personal services.There is a big difference when it comes to employee benefits.

It sounds to me that you are more of a financial advisor.

I work with health insurance as well, but I do have a way to help out with those companies that are looking to have 401k but can't afford it. I've found that this is usually lacking with the majority of companies that are under 30 employees.

I can come in to a group and offer the whole package, but if they're happy with their broker but don't have retirement...I can help with this.
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Just a thought, most small companies use payroll services such as Paychex, ADP, Paycor etc. Their market is the same as your market. With statistics showing that 95% of the small companies being satisfied with their insurance brokers, you have to fight for the 5% that are looking to change.

Working with a few payroll companies can get you the referral into the groups you are looking for. Once referred by a trusted source, you are in.

I've noticed that some companies are actually getting their benefits through their payroll company and the level of service is awful. I believe Paychex is hiring in our area someone to do group insurance using their platform, but I don't want any part of it because their service is terrible...once a client switches to new payroll company...I'm screwed.

 

[sammace]

Couple of ideas on this one.

1. Pick a niche market - whether it is a smaller geographic area or an industry it will allow you to position yourself as an expert within that market. Expert = instant credibility.

2. Persistency - as one other person in this forum mentioned, most small companies don't know who their health broker is, or they see them once a year. If they see you multiple times then the understanding of your "service" will be easy.

3. Sell Value - Too many times a broker walks in and sells the old "I can save you money on your health insurance." Problem with that is the next guy who walks in and has a cheaper rate has just taken your business. Sell the value added services you provide and you won't find yourself fighting for the business year in and year out.

4. Cross Sell - The employee benefits market has become increasingly more cut throat with BOR letters. Cross selling life and voluntary will help you hang on to some of that business. I work for a voluntary carrier and with most of us "voluntary" guys... we don't accept BOR.

 

[HRExpert]

The statistic that 95% of employers are satisfied with their broker comes from a study I saw last year. I cannot tell you who published it, but we were working with a broker at the time and he showed the information to me. He thought it was credible and he is credible and it makes sense.

In my experience, the small companies (under 10 employees and up) know who their broker is - but in most cases I find that the employer does not know what it does not know and satisfied with what they have - even if what they have is not good.

As for teaming up with payroll companies - I would agree that Paychex and ADP who have their own PEO's and have been getting into the benefits and 401(k) arenas have terrible service. So, team up with one that has good service and offers payroll services only. There are many good ones out there.

We have teamed up with Paycor for the most part and they are great to work with.

 

[ABC]

The PEO plans are having real problems staying solvent.
The loss ratio is very high. There is real uncertainty on how the health care law will impact them.

Most small groups that use these services do not realize the admin fees they are paying. I picked up a new group (16 lives) first of the year that way paying $15,000+ in admin fee for PEO services. I cut the premium on the health insurance in half and that was with a rate up. I pick up a couple cases a year from PEO plans. Service is always a huge issue.