Along with brand trust, having the best offers and prices is a key driver for getting shortlisted and finally selected by a customer. When compiling a shortlist of motor insurance providers, 42% of consumers put a brand on their consideration list because they had good prices/offers.
Budget Direct is a brand with relatively low initial recall of just 18% compared to AAMI’s 66% unprompted recall rate, according to the most recent data from our Digital Marketing Effectiveness studies. However, once customers did their initial research, 27% placed Budget Direct on their consideration list. Given that Budget Direct scored an impressive 78% in our Digital Sales Effectiveness benchmark for their site content around value proposition, their strong inclusion on shortlists is not surprising. They sit well above the industry average of 41% for their value proposition content, and hold a 22 point lead on Coles Insurance and GIO who share second spot each with a score of 56%.
Brands that cannot compete on price need to be focusing on clearly communicating what their value proposition is, otherwise they will lose out to brands who are in a situation where they can offer the lowest prices.
For a non-tangible product such as insurance, it can be difficult for consumers to determine the difference between policies offered by different brands. Therefore, brands need to be able to set themselves apart by including things such as a slogan to identify their competitive advantage.
Explain to the consumer what it means to be a policy holder with you. All insurance products offer protection, so what does your brand offer that nobody else does?
In addition to explaining what sets a brand apart, companies also need to be ensuring that they refer to the customer needs rather than solely focusing on the product. Using user centric language such as ‘you’ and ‘your’ can help to engage the consumer as it can turn the language used from feeling like jargon to becoming more conversational and relatable.
All of this helps to build a stronger brand impression whilst delivering a value proposition consumers can relate to and understand. This strong brand impression in turn helps to drive higher conversions online.