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Insurance Companies Prove Problem With Most Marketing Approaches

Posted by Nicole Babka

Jul 27, 2012 4:07:00 AM

The comedic approach taken by a number of insurance companies is not working, according to USA Today. While I admit that I find the Farmer’s Insurance commercial entertaining, it hasn’t even tempted me to think about buying anything from them.

As I’ve written many times before, being different should never be the focus  Today, it’s not even enough to be different and better; instead, you must be different, better and relevant.  The problem with most traditional marketing approaches is they do nothing to make companies, products or services relevant.

The article highlights the changes Nationwide Insurance, among others, is making to their advertising campaigns.

“While the World's Greatest Spokesperson helped boost brand awareness for the first time in over a decade, the two-year campaign couldn't stem eroding market share — off 9% since 2009 — even as Nationwide was pouring more and more money into advertising. Last year alone, Nationwide hiked annual ad spending more than 35% to more than $200 million.”

How do you like that?!  Increase ad spending by more than $70 million dollars and lose 9% of your market share.  Where is Sergio Zyman when you need him?

If this isn’t proof that awareness means nothing, I don’t know does.

Growing your business today require more than awareness; it requires engagement.  It requires bridging the chasm between your marketing and sales efforts and building a system that focuses on creating meaningful conversation, rather than just making claims.

The failure to radically change this approach will continue to cost businesses – large and small – millions in lost sales, profits and equity value.

Topics: Inbound Marketing, B2B Sales Strategy