As one more sign of “The times they are a changin,” the iconic brand Tupperware filed for Chapter 11 bankruptcy protection recently. Declining sales were given as the primary factor for the filing. Of course, the pandemic dealt a severe blow to the company that was known for selling its wares through in-person Tupperware Parties.
The pandemic’s impact most likely hastened the reality that the traditional sales formula of combining socialization with some consumer products — Mary Kay cosmetics, Tupperware and Avon, for example — no longer aligns well with the way most commerce works in the 21st century. Similar to the reason that participation in bowling leagues, civic groups, and other volunteer-dependent activities is waning, the reality is that many people want their evenings free or are involved in a multitude of their kids’ activities.
Also, the convenience of shopping online has decimated many Main Street stores (also hit hard by Big Box stores) and shopping centers. It used to be that every small town had a hardware store, an appliance store, retail clothing stores, hobby shops and perhaps a bookstore. Instead, Main Street now typically consists of hair and nail salons, restaurants, fitness and yoga studios, a bank and a boutique or two.
Impact on Main Street insurance agencies
What does this trend portend for Main Street insurance agencies? Yes, the oft cited adage that insurance is a relationship business is still part of the recipe — albeit an important one — but it’s not the only ingredient. Customers no longer need or want to stop in to access an insurance agent to facilitate transactional tasks as insurance carriers and agencies provide more real-time self-service tools. Successful agencies are leveraging technology and, most recently, artificial intelligence (AI) and large learning models (LLMs) to respond to more basic inquiries using chatbots online or via text.
This means that today’s service response needs to meet customer expectations in the way they prefer to do business: in-person, online portal, email and text. The ability to facilitate online to add a new car to a policy, update a payment account and other tasks are now seen as service table stakes. Agency staff can now focus their time on personal interactions such as account reviews, responding to more involved customer inquiries and networking.
Still, reputation matters, and word of mouth referrals are invaluable. In that vein, Google reviews, online testimonials and other social media shoutouts (likes, comments and shares or reposts) are important in burnishing the agency’s brand. Using quality content has its place in creating awareness and can highlight the agency’s expertise and thought leadership on social media.
Another evolutionary aspect can be described as a shift from the traditional socialization gleaned from in-person get togethers to the influencer ecosystem on social media and television. Yes, celebrity influencers can help with generating brand awareness, but the most valuable influencers are actual customers who project sincerity and objectivity with their feedback. Since most independent agency staff are involved in their community, having them post about their volunteer activities is often an underutilized avenue that is overlooked.
Is the party over, or just the setting?
