Evolving InsurTech Marketing Landscape for New Era Consumers, Marketing & Advertising News, ET BrandEquity
For an industry that traditionally operated through offline channels, the advent of digitalization has been nothing short of metamorphic. This not only accelerated the pace of product innovation, but also helped move the insurance category from a push product to a pull product for consumers. In today’s technology-fueled era, consumers are inundated with information and brands are vying for the coveted consumer mindshare. Even after the awareness brought on by the pandemic, marketing a product like insurance in the current era still needs a symmetrical intersection of information and entertainment to capture the consumer’s limited attention span. .
As industry-wide knowledge, the two factors that tend to hinder insurance adoption are distrust and procrastination. Marketing in the field of insurance is primarily aimed at gaining consumer confidence while breaking the inertia to purchase insurance. With the digital paradigm shift, it has now become easier for InsurTechs to reach the consumer, understand their needs and inspire that trust. Marketing to the new-age consumer is all about changing their attitude towards insurance from reactive to proactive. A powerful consumer engagement strategy helps build traction and dispel deep-rooted misconceptions around insurance. As technology accelerates product innovation and distribution, it is equally crucial in bringing that product to millions of people.
Here’s how InsurTech marketing is changing to meet the needs of the new-age consumer.
Invest in consumer awareness
The consumer-to-brand journey has four key elements: awareness, consideration, conversion and loyalty. Marketing largely works around the first and most crucial aspect: awareness. While insurance is the most effective financial and social shield, especially in these times, people are still postponing their purchase decision unless an unfortunate event triggers it. Therefore, in the insurance industry, a large part of the marketing expenditure is dedicated to the awareness of this category.
Television campaigns are an effective way to reach potential insurance customers. With a broader and more concrete reach, these campaigns aim to transform consumers’ mindsets about insurance, which are often clouded by misconceptions. Especially in an industry like insurance, consumer awareness is entirely dependent on how well the brand or product is positioned and promoted. This is where a clear advertising message helps reduce clutter. The need of the hour is to stay ahead of the consumer. This means understanding the pulse of the consumer and developing products based on their needs before consideration even enters the picture.
Personalized marketing strategy for personalized products
The insurance industry is rapidly changing to cater to all consumer segments by developing personalized products and facilitating customization of standard products. High sum insured plans in health insurance, independent term plans for housewives and corporate insurance for transgender people are just a few of the many insurance categories where product innovation is transforming the industry.
However, again, awareness of these products is low and preconceptions still dominate the mindset of consumers. To overcome this, brands are now changing their marketing strategy based on consumer behavior. The messaging of a product like insurance needs to be nimble enough to hit a nerve and help consumers make decisions faster.
While a TV campaign with a celebrity attraction works well on a broader level to stay top of mind, digital advertising works just as well when the consumer is proactively researching products. The USP of TV commercials is that they are a profitable medium with massive reach. They also help maximize demand and adoption for Tier 2 and 3 cities, which can be a game-changer for a product like insurance. They also work well for demonstrating affordable pricing points. The public appeal of such campaigns also proves effective during news events like the IPL. Sports marketing, due to its strong appeal to the public, fits perfectly with product marketing with thematic television campaigns.
Simplicity is the key
With so much information coming from all channels, it can be difficult for brands to reach the consumer. An effective marketing strategy always takes into account the power of simplicity to have an impact on the consumer. A marketing campaign, no matter how good, will only work if it fits into consumers’ increasingly short and fragmented attention spans. Therefore, the key to rising above the noise is to keep it simple and straightforward.
Digitization seamlessly facilitates one-to-one communications through different touchpoints and channels to amplify marketing efforts. It helps analyze consumer behavior through data-driven insights and findings, then rethink and redesign consumer journeys accordingly. This makes the whole approach consumer-centric rather than product-centric. The next step is to leverage this consumer sentiment to market the product.
With digital media, it has become easier to target untapped consumer segments through highly engaging content. Whether it’s through videos, instant marketing, or short trending content, it’s all about getting the message across. Digital platforms massively extend the reach of a brand and also help in the scalability of these marketing initiatives, which, in turn, helps increase brand awareness.