By Jeremy Weinstein, Senior Client Advisor, Global Reviews @drjezza
A recent Marketing Effectiveness Study run by Global Reviews indicated that 31% of people who had used, or would use travel insurance could not recall a single brand when asked.
The study of over 200 people led to the startling discovery that travel insurance brands are effectively invisible to many consumers.
One of the key revenue drivers – across any industry – is repeat business (think of the 80/20 rule), and one of the best forms of advertising is word of mouth (WOM). This study suggests that the travel insurance industry is ignoring both.
Australia’s travel insurance industry is valued at $744M of which $230M is being spent by people without any idea who provides their insurance, or at least cannot recall them when asked. This means that there is no opportunity for WOM or repeat business from satisfied customers. The conclusion is that consumers who can remember a brand are likely to do so based on a bad experience and if just one of those customers turned to social media, the repercussions could be catastrophic. Just take the United Breaks Guitars YouTube clip (currently over 13 million views), which was allegedly responsible for wiping $180M off the value of United Airlines in four days.
Furthermore, the return on investment required to secure customers is not fully realised for many of the key players in the industry as evidenced by when we asked users to locate, shortlist then select a travel insurance company by doing some desktop research. 41% of consumers who could not initially recall a travel insurance brand selected a brand to put their shortlist because they were ‘familiar with their name’. This further reinforces the value of brand recognition.
Finally, of the remaining participants in the study (those that could initially recall a brand), 46% would not be prepared to make a decision without doing some further research. This means that there is limited brand loyalty even amongst those who are brand aware – representing a further $236M that is being leaked by companies due to disloyalty.
A huge, multimillion dollar opportunity exists for a company who can create strong brand recognition and loyalty in a crowded, competitive and otherwise invisible marketplace.
Do you know how much your brand is losing annually?
For more information on this research, please contact:
Senior Commercial Director
T: +61 3 9982 3412
M: +61 409 054 641