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Offer a discount : one of the worst things you can do in marketing direct

by

Alain Castonguay

June 8, 2018 07:00

Photo : Freepik

Once the bid solicitation is accepted and the conversation has begun, there are gestures that should be absolutely avoided in marketing direct.

The first, according to Jacques Nantel, professor at HEC Montréal, is to “beware like the plague” coupons or other types of gifts. “The temptation is there. It is rooted in our genes when we do the marketing and of the marketing, ” he says.

Regardless of the field, not only to insurance, use of coupons, gifts and discounts has the effect of reducing literally the average revenue obtained per customer. “The people who use the coupons customers are the least loyal “, he confirms.

Secondly, he notes that the probability of purchase declines with the number of raises. The more you multiply quotations, unless the person buys. Empirical studies in marketing show that the higher the demand is insistent, the less it gives results.

Any advertising that is purchased on the Internet works with this approach. If you watch an advertisement, and the targeted consumer has not responded after three attempts, the advertisers ask the search engine to suggest other advertising, ” he says.

Thirdly, it recommends limiting the number of messages. Even if the person became a client, the statistics are clear : again, there is a direct relationship between the number of messages received and the likelihood that the qualified customer request that we remove his name from the mailing list. Some will do it as soon as the first message received. Those who remain continue to listen.

“In the second and third message, you are made in the best customers. The first who were not interested are already gone. You are now in the window, the more lucrative your marketing custom, ” he says.

For all of the customers present on the lists, the best strategy is that every person in the organization who is in the relationship with the customer that encourages him to gradually go on the page Facebook or a portion of the website which gives access to information that is more personalized. “Stop the bombarding of e-mails. Let them come to you. Once the relationship is established, if you’re relevant, if you’re there at the right time, if you have good content and if it is custom, you go into a relationship, ” said Mr. Nantel.

The lessons learned

The purchase of customer lists non-qualified is not recommended. “If the client came to you and showed his interest, arrange to talk to him. If the person is a customer for a long time, make sure to highlight it. You are in a personal relationship. It is important to ensure that the person is not asking if a new customer would have a better bonus that he or she is, then she is your client for the past ten years, ” said Mr. Nantel.

In the era of artificial intelligence and machine learning, companies now have the tools to customize their offers. “Better fewer leads, but better clients. This is the most important point to remember, although it is also the most disturbing. It is sadly convinced, as a human being, that quantity is better than quality. In reality, it is exactly the opposite. This is particularly true in insurance, ” he says.

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