Insurance is the only thing that you ever buy that you’re glad to never get any use out of. At least it’s the only thing I can think of, apart from some dodgy impulse wardrobe buys. (Other ideas on a postcard please…)
It’s like buying a Mars bar and then being satisfied with an empty air filled packet.
There’s nothing tangible to buy, and it’s only of any benefit when something unfortunate happens.
Traditionally and fundamentally, there are two main ways to trigger a buying decision of a financial protection product.
- Demonstrate the likelihood of something happening / not happening
- Illustrate the repercussions of something happening / not happening.
Either way, the ‘need’ factor comes from fear. No doubt fear is a powerful emotion, but it’s also a negative and monotonous message to base your brand around.
Of course, the more attractive younger sister of fear is ‘peace of mind’. And for many years, that’s been the spin that you buy when you put your hand in your wallet to fork out for insurance.
But again, it’s a monotonous message that’s hard to demonstrate the value of.
You buy travel insurance and you don’t use it. Fine. Good in a way. But for the 98% of people that never need to claim on their insurance, how can you leave them feeling like they’ve got value for money?
There’s a new generation of insurance marketing strategy which aims to address this imbalance, and it’s an interesting development…
Take Vitality Health from Pru Health. When you sign up to their private healthcare insurance package, you get a whole host of additional benefits without ever needing to make a claim. Some directly related to health – video GP appointments and a 24/7 GP helpline. And others that are on-brand, but indirectly linked to their product.
They’re about rewarding their customers that live an active, healthy lifestyle – 50% off Virgin gym membership, a free Starbucks coffee each week.
Ultimately, these added bonuses are the result of a narrowing market space that evolved from a consumer reliance on comparison tools. There’s an unquenchable thirst for differentiators. Aiming to change, or at least supplement the buying motive with a more positive message – life’s for living – we’ll help you achieve this come rain or shine.
And hey presto, you suddenly have tangible benefits that 100% of your customers can use and enjoy, not just the unfortunate ones. Compare the Meerkat’s 2 for 1 cinema ticket offer when you buy insurance from them is another great example.
The penny has finally dropped that you’re not going to get raving customer reviews (or high retention rates) from the 98% of your customers that never see a return on their investment.
As consumers and marketers, we say ‘good’. We like where this is heading.
Let the bar raising commence…