30. Dezember 2018 14:12
Imagine you are the head of sales at a major insurance company. There is just one problem, you need to get better numbers. Attracting new clients would be the solution to make your boss happy but how to attract new clients in a short time?
We'd love to help you out, maybe with this idea: advertise on private cars from customers of your competitor. Its not just simple advertising,
its like a door opener in highly competitive markets.
The important point is this: A fixed amount of cash is paid as compensation in the beginning. After a while the "adriders" can choose between canceling the campaign or continuation but with different rewards.. like offering insurance covering instead of cash. Most of them will take the offer and become a new client. This behaviour is due to the endowment effect which is linked to loss aversion. (You can learn more about the endowment effect here.)
Insurance companies can now advertise, onboard new clients and convert them into local ambassadors in 4 steps.
The value of a brand depends heavily on individual experiences. How much can virtual experiences differ from each other? Real brand experiences are rare & expensive but they can make a difference. Instead of celebrating a brand/product on a single event, advertising on private cars raise awareness on the street but also within micro communities of the ambassadors.
Another aspect should not be forgotten. The waste of advertising money is hard to understand for most people. This is an opportunity to make marketing expenses more sustainable.
Thanks for the read and happy 2019!- Valentino