Auto Insurance Broker Merchant Services
Automobile insurance is mandatory for anyone who owns a car and drives it. The types of insurance, the coverage choices and the costs can all be variable though. So how does one figure out what is needed? You should call an auto insurance broker. Auto insurance brokers are in a very competitive market with thin margins so any way they can reduce their fixed business costs or even reduce their cost per acquisition then they will make more income. This article will talk about credit card processing fees as well as tips for your insurance business.
Credit card processing fess are a fixed cost of doing business as an auto insurance broker, as many clients now a days want to pay with their credit card to earn points or miles or to pay with their debit card because many people do not carry a checkbook any more. Every time you swipe or key in the card number there is a cost. That cost will be less expensive if you swipe the card compared to if you key in the card number. For a lot of auto insurance brokers it is key to take transactions over the phone and not just in person. There is even technology available to store tokenized card numbers in the cloud on secure servers so you can set up recurring billing for your clients. This method is by far the most convenient for the auto insurance broker especially with next day funding for cash flow.
Now that you have cash flow how do you reduce your marketing costs to bring down that cost per acquisition? Well first you need to calculate what it actually costs you to obtain a new client, then you need to track what marketing channels you are using for advertising that are producing results. Do you have a system to determine your ROI? This can be as simple as an excel spreadsheet to track cost of the ad, how many leads you received, how many new clients obtained from that lead source. These numbers will be the life force of your business. Once you start to track you need to only but your money where the winners are coming from… but you cant do this unless you track!
If you are in need of marketing tools to better convert sales and increase your local market share check out some of our marketing services available.