Strategic Interactive Marketing

Impact and opportunity within the insurance industry

Consumer Impact

People are likely to adopt new behaviours as they come to terms and adapt to these changes:
 

• Confusion will be the initial reaction making people will seek new adaption models.
• Learning is the next stage and people will turn to a variety of sources of help.
• Experimentation comes next as people try different coping strategies.
• Confidence will come over time, but there will be set backs and new learning. For instance the recent pensions scandal will make people reappraise how to provide for their retirement.

Note that consumers can be at different stages in this model for different situations and needs.

Industry Opportunity

The insurance industry has an opportunity to assist consumers at every one of the above stages. In fact, by initially providing support with no immediate pressure to buy will enhance consumer confidence and appreciate. These are ideal actions for 1:1 Marketing and Lifelong customer value.

The new technologies provide enable all stages to be addressed in a cost effective manner. But this is easily replicated. More important, is that new technologies also provide an opportunity to deliver personalised value added services directly delivered to the point of need, at the time of need, and as a continuum, as needs become clear, evolve and change.

By using Mass Customisation, companies can provide these superior value added services at a price of their more mass market competitors.

Industry Challenges

However, many established providers of insurance will be slow to seize the opportunity. Some will be burdened with poor reputations or find it difficult to adjust to new legislation and regulatory controls. Others will address these areas with marketing enthusiasm, only to be let down by existing administrative processes, unsupportive and out-dated IT, and traditional culture. Some will simply wait until the concept has been proven, and then make a desperate attempt to catch -up. Commentators have liken 4 months of internet development as equivalent to 1 year of normal business and IT development.

All these situations will leave the "playing field" open for new teams. Teams with innovative ideas, greenfield operations, strong brands, and established and loyal customer bases. Virgin and the food retailers have already seen the opportunity. And, to make matters potentially worse, the single currency and european insurance deregulation will open the floodgates to other.

Next is The importance of a marketing approach

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