Marketing is a science that draws from psychology, statistics and other tricks to get people to give their money. Some define marketing as the art of helping people make happy decisions. Sales and marketing professionals may pull any trick, technique, or turn to draw a crowd in and ensure they leave with a smile on their faces. Many of the strategies used in insurance sales are highly profitable and competitive. This is evident in the many strategies we see online, in print, and on television.
Many people now shop online to find great deals, bypassing brokers and high-street retailers. They’re not only cutting down on costs, but they also ensure that they purchase the right product. With the ability to quickly compare products and search for specific criteria, people now have a stronger buying position. The consumer is now in control, rejecting passive buying and adopting a pro-active approach to take advantage of a wider marketplace.
To be distinguished from comparison sites
Some of the most prominent insurance companies have taken the unusual marketing approach of declaring themselves non-participants to comparison websites. They claim that they are so competive, offer a wide range of products, and can provide all the services you require that they don’t feel the need to compete with the rest. They are bigger and more successful than the competition, and they have chosen not to compete in the market for comparison sales. Some other reasons they might use include not wanting their site to be compared, but instead prefer to pass the savings on as lower premiums.
The reason they refuse to participate is that the price of car insurance is only one aspect. Consumers need to consider more than just cost when choosing an insurance provider. It’s similar to buying food, wine, chalk, or cheese based only on the price. There are also important degrees of subjectivity involved when purchasing motor insurance. A price comparison website cannot cater for. Perhaps they didn’t take a sufficient look at the variety of criteria that can be used to evaluate policies on comparison websites. It’s an interesting tactic – the “our product is so superior, we don’t need to go head-to-head with our competitors on comparison sites” approach.
Fearful of the competition
Or maybe their products cost more than the competitors and they prefer not to have it shown on comparison sites as clearly and consistently. The head office has clearly calculated that the lost business value due to not being included on comparison sites will be more than offset by the added value of their other routes of market.
Companies that participate in comparison websites are also calculating their commitment to online marketing. The increased sales volume will offset their lower pricing and less value. It is best to compare quotes from different comparison sites and then to see which ones are comparable to those of companies that have chosen to opt out. While it can be frustrating because it defeats the purpose of a comparison website (ease of comparison), it’s definitely worth doing it several times. The competitive nature of comparison sites may mean that you will be able to save your time and stick with them. There is a good chance that your comparison site insurer will provide not just the lowest quote, but also the most appropriate one.