Five Customer Segments for Those Looking for Small Business Commercial Insurance

Knowing your customer is essential when you’re in the small commercial insurance industry. Small business owners want to work with great carriers, and understanding their needs gives you the insight required to serve them properly. 

There are five primary small commercial insurance customer segments to consider.

Agent-Loyal

This customer segment relies heavily on their agent to provide service advice. Because they choose not to do the research independently,  small business owners tend to rely on the agent they trust.

Self-Servicers

This customer segment is the opposite of independent loyalists in that they prefer to do the work and make the decisions themselves. 

Self-servicers want to make their purchases online or over the phone and manage their policy online, they don’t want to spend time fully customizing every detail of their policy.

Since they are doing the work of purchasing and maintaining their new policy themselves, this segment wants to make their purchase quickly and easily. 

Price-Seekers

For price seekers, price is the most important decision making factor when seeking small commercial insurance. 

Since they are looking for some of the lowest pricing, they don’t tend to seek extra insurance coverage beyond the basics or request customized services from their carrier. 

Brand-Loyalists

Brand loyalists prefer to stick with one company. They feel comfortable with their insurance choice and the resources behind that brand because it works for them.

Protection-seekers

These small business owners want or need niche insurance protection. They recognize they are a hard-to-place risk, and expect a knowledgeable agent.

They expect it may take more time and follow up with the underwriter to complete their application.

Keep These Small Commercial Insurance Segments in Mind

While there are surely additional small commercial insurance segments, these are five common types you’ll come across. 

As an insurance carrier, having an understanding of potential policyholders is very useful in planning out how you interact with people within your business. 

Whether a small business owner is a self-servicer or a brand loyalist, one thing they all need, to become a policyholder with your company, is a smooth application and quote process. 

Are you using all of the latest technology to ensure you’re providing each segment with the best in small commercial insurance from beginning to end?

If you want to increase your conversion rates while decreasing your costs and improving your user experience, we can help. Schedule a free demo to experience how we can support your insurance company.

Posted in