“Cheap insurance premiums”, “let us help you structure your package in a way that is affordable”, “earn up to R800 back on fuel spend every month”, “great rewards for driving well”, are just some of the known phrases in the insurance environment: The trend of the “battle of the premiums!” What is quite apparent is the fact that people, in general, are indeed on the look-out for instant gratification and cheaper insurance premiums, especially the younger generation entering the marketplace, buying products and services. The issue here is not where one is insured, but rather the fact that he/she will change insurers for a premium saving as little as R20 to R50 per month.
Times have changed so significantly that people will do anything to get something for free or behave differently in order to be rewarded. We no longer live in a society where people pay for the so needed cover and if “not used” nothing is given in return. Knowing this, companies in today’s day and age have tweaked their marketing strategies to attract clients in buying into the instant gratification “regime”. The question one needs to ask are consumers really getting the best product and/or service an insurer has to offer? Is the premium then really the cheapest? Or is the consumer actually paying for the reward themselves but only structured in such a way that it looks and sounds attractive?
Also trending is the fact that insurers may underestimate or even be intimidated by the influx of Social Media into their business model as Social Media is already affecting how people buy products and services. Young people, as well as the techno-savvy consumer, might use their mobile phones to start enquiring and even conduct business with companies in this manner, if not keeping abreast of this way of doing business; insurers might wake up one day and realize lost opportunities. Recent studies show that the role of social media on marketing decisions is astounding, meaning it is time companies started putting more emphasis on their social media strategy.
According to Masroor Ahmed (conversation optimization analyst) simply put, social media is a peer influencer when it comes to making buying decisions, as 71% of consumers are likely to purchase an item based on social media referrals; 78% of respondents in a social media survey said that companies’ social media posts impact their purchases.
In conclusion, perhaps a brilliant strategy is to develop reputable, rock-solid, consumer-focused products including longevity, cheap premiums and rewards so desperately desired through the right social media channel/s, with an added cherry on top - service excellence, for free!