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The Difference Between High Growth and Low Growth Agencies

May 17, 2016  |  Posted by Nick Peterson  |  4703 Views

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The most talked about marketing topic at MacNeill Group is agency growth. All of our agent partners want to beat their previous year’s sales. Whether by large or small increments, we’ve observed that giving your company finite goals is the only way to consistently grow your business. One of the most important objectives is to identify if your agency is fulfilling its true growth potential.

The Insurance Journal released an article citing a survey conducted in 2014 which examines the most prevalent differences between high growth and low growth agencies. Julie K. Davis, the founder of Risk Communities, LLC based in Texas headed the survey of 32 insurance industry organizations ranging anywhere upward of $1 million in revenue annually.

The Results

High growth firms attract “individuals or groups of individuals that were known in their niche. They had built-in connections and networks. They used social media, publishing and expert speakers and interviews at a very high level. They built their business on the strength of who they were as compared to other firms,” said Davis.

Working together as a team by identifying individual strengths can only help your business.

For lower growth companies, the story was quite the opposite.

“The lower growth firms also had little use for branding tools, such as social media, publishing and expert speaking, and they usually did not have an entrepreneurial track record when it comes to building businesses. Low growth firms focused on market quotes, quote comparison, and had little focus on the coverage element,” added the Insurance Journal.

Another unique factor affecting growth was the amount of time spent researching the clients’ needs and trends. While faster-growing agencies were offering new services and creatively introducing new products, the slower-growing agencies had a lack of knowledge and an unwillingness to learn.

When we read the results from this survey, its message is blunt; there isn’t a doubt that the only way for a business to survive is to stay relevant and visible to potential clients.

The Solution

One way to become a high growth agency is to identify your strengths and make them your top priority.  Keep in mind how you want to be perceived by new clients and bring that vision to life.

Is someone at your agency creative? Assign them the task of generating a new voice for your agency’s look and feel. Whether you hold a weekly marketing meeting, take classes together, read industry news and share with your team, any of these are great ways to build your business. No one person can do everything. Trust that you can accomplish anything by working together.

Set realistic goals for your business and prioritize. Networking is another great way to easily boost your appeal. 3 very common networking tips include:

  • Identifying your ideal client. Find out not only how to reach people, but who you most desire to do business with.
  • Make the time to sit down with your team and share ideas. You never know what your colleagues will come up with. Team building exercises can help to open the door to future collaborations.
  • Network, network, network! Meeting like-minded professionals will bring your game to the next level by gaining a different perspective on business approaches.

Because following through on goals is no easy feat, hold each other accountable to maintain your system and structure, and stay positive! Remember that by helping each other, you are helping yourself. The business of growing is a win-win.

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