Surviving tough price wars through ‘online marketing’
- Insurance businesses struggle in price wars to achieve their KPI and survive in periods of economic recession.
- “Online Marketing” is a potential tool to increase sales for insurance businesses due to its ability to reach customers, especially new generations who are deeply engaged in the digital world, at every touchpoint.
- The top 3 insurance business in Thailand turned to online marketing in the belief that it is a way to survive.
Since last year, economic recession has been affecting the insurance business in Thailand. Everyone noticed the decline in consumer purchasing power, but company KPI has remained the same. This pressures insurance agents to cut prices, and so results in a price war.
This is surely an unhealthy business strategy in the long run!
Price wars create a no-win situation for insurance businesses since consumers will buy only when you offer the lowest-priced products on the market.
One company probably enjoys a larger sales volume, but it generates the same or even lower profits, while another company will lose money and might even go bankrupt.
The question here is why you have to take these risks since you have another option which generates more revenue and avoids a price war.
“Online Marketing” is an essential tool helping insurance businesses to approach their customers at every touchpoint, especially those in this “Transitional” age who are changing their behaviour and lifestyle to be more digital.
A survey from Insurance 2020: ‘The digital prize – Taking customer connection to a new level’, which collected the data from 10,000 insurance clients across the world, shows that 71% of insurance clients on digital platforms search through websites and social media before making any decision.
While Google stated that insurance clients these days spent more than one month to make any purchase and within this period there is an important moment called ZMOT (Zero Moment of Truth).
This moment is the point at which a consumer has a strong interest in a product, but still hesitates to buy due to a lack of information.
The pool of information affecting the decision of insurance clients to make a purchase is not only advertising in newspapers, television or handouts, but is increasingly online information like reviews on a Webboard or information from search engine.
Thus, what insurance businesses wishing to avoid a price war need to do is add an online promotional channel to your plan. Doing so connects you with your prospects easier and boosts sales by feeding necessary information to them.
Don’t hesitate to go online since the three leading insurance businesses in Thailand have turned to online platforms, using Google, Facebook, YouTube or Influencers to advertise themselves and engage digital clients.
Leave price wars behind and distinguish yourself with online marketing today! Heroleads is a professional online marketing expert who deeply ‘understands’ and gets ‘insight’ into new-gen insurance consumers.
We have a vastly experienced and dedicated team to drive insurance businesses to success: Be no.1 in the minds of the customers, increase sales and achieve KPI.