I sat across from two insurance veterans last week, good people who’ve built a solid auto and health insurance business over decades. Their client base calls them for everything: “Can you check my policy?”What’s my deductible again?” “How do I file a claim?”
Basic stuff. Stuff their clients could handle online in thirty seconds.
But here’s where it gets interesting: they want to launch auto tourist insurance for tech-savvy travelers: same company, different audience, completely different expectations.
The problem? They’re trying to fish in new waters with old bait.
The Disconnect is Real
Their current clients represent one behavioral segment; tourists who need temporary auto coverage represent another entirely. The contrast couldn’t be starker:
Current clients: Call for everything, prefer human interaction, comfortable with traditional processes
Target market: Expect self-service, demand instant everything, bail at the first friction point
When I suggested they’d need to modernize their systems and communication approach, they pushed back. Hard. “Why change what works?”
Here’s why: what works for one segment can kill your chances with another.
Three Truths About Market Expansion
1. Your delivery method IS your market positioning. If tourists have to call your office to get a quote, you’ve already lost them. They’re comparing you to companies that deliver quotes in sixty seconds through mobile apps.
2. Customer expectations aren’t suggestions; they’re requirements. Tech-savvy customers don’t want to adapt to your processes; they’ll find someone whose processes adapt to them. Period.
3. Operational evolution isn’t optional when you’re targeting new segments. You can’t serve premium coffee through a drive-through window designed for burgers and expect the same results.
The Hard Choice Every Growing Business Faces
My friends face the same decision thousands of successful businesses encounter: evolve your operations to match new market expectations, or stay in your lane.
Both choices are valid. But you can’t have it both ways.
Want to capture the tourist insurance market? You need:
- Instant online quotes
- Mobile-optimized applications
- Self-service policy management
- Digital-first communication
Don’t want to invest in those capabilities? Then focus on growing your existing client base through referrals and geographic expansion.
The mistake is thinking you can capture a digital-first market with analog-first operations.
The Real Question
This isn’t about right or wrong; it’s about strategic clarity. Ask yourself:
Are you willing to invest in the infrastructure your new target market expects, or are you better served doubling down on the segment that already values what you deliver?
Because trying to serve everyone often means serving no one particularly well.
Bottom line: The market doesn’t care about your preferences; it cares about its own.