Tuesday, April 22, 2008

New way of marketing

A blog reader asked how a new life insurance company can market its products in Singapore, without paying high commission to agents.

It can adopt an innovative "educational" approach:

a) Educate the customers through the website
b) Give educational talks at workplaces and public venues
c) Distribute educational materials on the street
d) Print articles in the print media

This educational materials will inform the consumers about the value of insurance and the difference in cost between the "low cost" and "high cost" products. I expect that many consumers will prefer to buy the "low cost" products directly.
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1 comment:

Anonymous said...

Hi Mr. Tan

You have good ideas on the marketing.

a) For website marketing, you can leverage on existing insurance companies design (mix and match. So far I find Income and Aviva's website least complicated. You can also place links on your blog to the main company's website. My insurance advisors does it all the time for their websites.

b) Educational talks at workplaces and public places are good. So far, I find AIA's been most pervasive.

c) Distribute education materials on the streets? You mean like those people/student who stand in the underground tunnel in Orchard MRT and at outside MRT stations and distribute the flyers? You can consider road shows too. The problem is that a lot of such "educational" material are also found next to the nearest bins.

Alternatively, you might want to find out where the other insurance companies/banks/financial institution does theirs and see where you can position yourselves, maybe a few steps away so that passengers can get your pamphlets first before getting your competitors. Real estate is location, location, location. Based on my observations, MRT stations and bus interchanges are best places to conduct such activities. You can also conduct "surveys" and invite the people to contact you to know more about the products or services that your new company is providing. Best if someone can sign up a plan on the spot if the plan is not too complicated. I know Prudential is very good at doing surveys.

d) Print articles in the print media - is this advertising? How much does it cost generally and is it effective? I noticed NTUC Income always like to print a lot, a lot of advertisements on New Paper and other tabloids - is it cheaper than the mainstream ST and BT? Be wary of high cost ads as it will eat into the capital of the new insurance company.

I think you don't have to reinvent the wheel - just look at the successful models practiced by other insurance companies can help you save costs and time.

Wish you success!

April 22, 2008 10:58 AM

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