Ethnic Marketing
Selling to Multi-Cultural Small Business Owners
by Fernando Crucet
Many multi-cultural consumers are small business owners. The number of these businesses and their revenue has been growing faster than that of the general population, according to a LIMRA International report. Hispanics constitute the largest minority business community and this business ownership has grown rapidly from 284,011 to nearly 1.6 million from 1982 to 2002, according to a report by the U.S. Small Business Administration,
The numbers prove that multi-cultural small business owners make up a growing market, but is it a worthwhile market for insurance professionals? The answer is an emphatic "yes." Another LIMRA report reveals that the small business market will provide at least 500,000 sales opportunities over the next two to three years. This is an attractive market for insurance professionals because small business owners are looking for insurance products for their businesses. Strategies can range from financing accounts receivables to creating executive and employee benefit packages. These benefits are crucial to attracting and retaining quality employees and maintaining the health and longevity of the business.
Business Solutions and Beyond
Producers have an opportunity to sell directly to the small business owner, many of whom are affluent or emerging affluent. Two-thirds of Hispanic small business owners say their business is their only source of income, making life insurance necessary to protect their family's financial security.
Those in the multi-cultural market are concerned about what financial impact a premature death would have on their families, especially since it is not uncommon for their households to consist of extended family members, such as elderly parents. As a producer, show the small business owner how financial tools like life insurance can assuage these and other financial concerns like funding college educations.
Spread the Word
Many multi-cultural small business owners are very involved in their communities. They are active in civic associations, chambers of commerce, and other organizations that have influential members. Word-of-mouth recommendations carry a lot of clout in multi-cultural markets since many prefer to work with financial representatives who are well known by friends and family and come recommended. Your business can expand exponentially by using insurance-based solutions to help to solve personal finance issues and asking for referrals.
The Right Approach
So, now you know why you should target this market, but what's the best way to go about it? While face-to-face is the preferred selling method, you may want to consider other options since multi-cultural small business owners are increasingly open to other sales approaches.
Hispanics are most likely to use other channels, such as banks to purchase life insurance policies instead of meeting with an agent in person. However, banks aren't the only selling option producers can use. You can partner with other professionals to reach the small business owner, such as lawyers or certified public accountants. These partnerships can add value to these professionals' practices and you may get introductions to clients in their books of business.
Community Relations
Another great method is to get involved in the business owner's community. Small businesses often realize how important it is to have a strong and positive community presence. Producers can mirror this sentiment by participating in or sponsoring community events and volunteering in civic organizations that are meaningful to potential multi-cultural clients.
Consider holding financial seminars in the community or piggybacking on local financial forums as a featured speaker. To be completely effective, your participation should be comprehensive, such as holding the event, speaking at the event, and running advertisements for the event. Multi-cultural marketing means more than translating your brochure. It's about understanding the mindset and culture of people in these diverse markets and showing your commitment.
A Committed Partner
Align yourself with a carrier that's committed to multi-cultural marketing, realizes the importance of this market and has the resources and willingness to align with insurance professionals. A well-recognized brand doesn't hurt either.
Putting it All Together
Multi-cultural small business owners make up a great target market for insurance professionals because they are looking for insurance-based solutions to their business and personal needs. They can also provide additional business through referrals and word-of-mouth recommendations. You can achieve great success and new sales in this growing and lucrative market with a little innovative thinking about partnering with other professionals or sponsoring a community event.
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Fernando Crucet is director Multi-cultural Market Development. AIG American General companies offer a broad spectrum of fixed and variable life insurance, annuities, and accident and health. AIG companies provide retirement services, financial services, and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Paris, Switzerland, and Tokyo. For more information, visit www.aigag.com.
