The Health Insurance Store

[TheSalesWolf]

I've thought about opening a Kiosk in the Mall, the Insurance Customer Service Center, Give people a $3 to $5 gift card to a store in the mall for allowing me to run a quote for them while they shop. They give their information and check back with me on their way out and I'll have the quote ready along with the gift card.

 

[somarco]

Give people a $3 to $5 gift card to a store in the mall for allowing me to run a quote

Sounds expensive.

Cost of the kiosk rental.

Your dead time.

$5 for the gift certificate. My guess is you will get quite a few just doing it for the $5.

It could work, but I wouldn't want to be the guinea pig.

Let us know if it works out for you.

 

[Wprice]

That's a whole bunch of money. It's almost like the car numbers..... x amount of test drives equal x amount of sales.

 

[Crabcake Johnny]

I personally would not sit in a mall. I think that's brutal. At best I'd farm it out but honestly the flow of mall traffic just goes right by those kiosks. I'm looking for places to put brochure stands - not full blown kiosks - and I think those would work if placed correctly. I know for a fact that the concept works since the take one cards did nicely.

 

[The New Guy]

Kiosk Marketing

Having spent more than 10 years making a living off of 12 sqft of Mall Kiosk space, this is how I would do it for insurance.

It is all about the advertising. The primary job of your Kiosk is to advertise your product. I would have it fully decked out with lots of marketing display materials from the different companies you sell for, brochures, your name, number, website etc.... More on this later.

An eye catching display will draw the most views. I say views, because in Kiosk Retailing, you have maybe a 3 to 5 second window to capture their attention, as they walk by.

I would not staff it full time, but always maintain a schedule on the Kiosk when a rep will be there in person, say a two hour window, a few times a week at different times. Perhaps, doing a drawing for a Mall Gift Card to encourage people to stop and fill out your information card. You will be amazed on how many people will fill those things out. Depending on your Mall, it may have anywhere from 5000 customers a week to 75,000 plus.

Like any other form of advertising, it will take some people several trips to the Mall before they discover your Kiosk, if ever, others will notice it the moment you set it up.

Don't be discouraged by the number of people that just walk by, you are there for the people who have an interest, stop, and act accordingly.

Advertising signs are only ment for the 5% of the people who actually read them, the other 95% still need to be reminded of your product, or service. That's why you are greeted at the door of most stores, and informed about their specials, even though they have 8ft tall ads in every window.

Now, how do you get there?

Contact your local Mall, and ask them for their Temporary Leasing Agent. In most malls, this is the Mall Manager, Assistant Manager, or their Marketing Manager, depending on the size of the property, they may have a dedicated leasing person for this position, I had one Mall where it was actually the Maintance Manager, who was in charge of their Kiosk Program.

Costs involved

Most Class A and B Malls will require you to use their Design Staff to create your presentation. Some Malls, this is done in house, some Malls hire this out. This fee can run from 250.00 plus props to 750.00 plus props depending on your setup. Lower quality Malls will let you design your own display. It's harder than you think to make a great presentation, I'm sure you all have seen some real junk Kiosks in Malls, don't be one of those.

Most Malls, the use of the Kiosk comes with the cost of the rent. Some Malls will let you design your own free standing Kiosk, others, require you to use theirs. Usually the better class the Mall, the more likely you will have to use their units. This is the route I would go.

You will be required to carry liability insurance usually a 1,000,000 policy. Some Malls will also require you to have workers comp insurance even if it's not manned, just one of their policies.

Some Malls include the cost of electric in your rent some don't. Telephones are up to you, if you want one or not, at your expense.

Most Class A and B Malls will have a dress code if you have your Kiosk staffed. Usually no Tennis Shoes, Shorts, or Jeans.

Now the question most of you have. The Rent

Most rents will depend on the Class of Mall you are in. It just goes to say, the better the Mall, the higher the rent.

Rents will start anywhere from $400 a month to $20,000 a month depending on the time of year, Class of the Mall, and location within the Mall. I would say the average Mall rent for a Kiosk will run you around $1,200 to $1,800 a month in rent. Usually, they will charge you less for a Display, or Advertising Kiosk, than for one that is selling a product like Sun Glasses. Also the longer the lease you sign the lower your rates will be.

Most Malls will also require a security deposit. One months rent.

I would look to be in the Malls during the off season. January to September, when the rates are lower. The beauty of Kiosk Retailing, is that most Malls operate their programs on a Month to Month rental basis, meaning no long term lease. Some Malls will even offer as little as a Three Day Lease, usually Friday to Sunday.

If you are looking to do a Kiosk in a Mall, don't be afraid to counter offer them on the rent. I have got as much as 50% off the book rate.

I'm not up and running yet, but when I do get going, a Kiosk in my local Mall will be in my marketing plan.

I have four appointments with insurance companies now, and will start selling very soon. Looking forward to my journey.

 

[Crabcake Johnny]

Those prices surprise me - much cheaper than I would have thought. With my average commish being $1,000 even an $1,800 a month kiosk would be sure to turn a profit. I was also under the false impression that I'd have to sign a long-term lease. However, if I can really get a mall kiosk for $2,000 or under and sign month per month I guarantee you that within the next two weeks I'll be speaking to mall managers. I still would not be there. Instead I'd pay someone.

 

[J.R.]

Have any agents down in Florida had a chance to go visit the BCBS store and experience how they operate?

 

[moonlightandmargaritas]

Have any agents down in Florida had a chance to go visit the BCBS store and experience how they operate?

BCBS-FL has been losing IFP market share over the last couple of years to both UHC and Humana.

They think the answer is to have "health insurance stores".

They don't realize (clueless as are most big mutual insurance comapnies), that the answer is to have:

1) responsive customer service
2) reasonable underwriting timeframes (not 1-2 MONTHS)
3) brokerage distribution

It'll never happen though. They think that they are so wonderful that they can do anything they like, and people will flock to it.

Could be why their IFP market share continues to shrink...

 

[J.R.]

1) responsive customer service

Agreed.

2) reasonable underwriting timeframes (not 1-2 MONTHS)

Agreed.

3) brokerage distribution

Does BCBS not appoint agents in Florida or are you talking about a different type of brokerage distribution?

 

[moonlightandmargaritas]

No Bob, they will only appoint brokers for group.

IFP distribution is only through their "contracted general agencies" - contracted Bx only shops.