Designing Direct Marketing Products
By Peter Coy, President, Prodigm Inc.
The design of a direct-marketed Insurance product needs to be different from the standard agent-sold product. The whole integrated process of marketing sales and service needs to be considered to maximize efficiency and profitability by minimizing handling and reducing unprofitable service requirements. Here are a few of the issues:
Simplicity
to minimize misunderstandings and client service call volumes
Minimum options
to guide the consumer along a limited choice path with predetermined variability
Personalized
to make the consumer feel that their needs are being specifically addressed
Multi-provincial
to meet the regulatory requirements of as many provinces as possible
Lifetime profitable
taking into account the total cost of sales and on-going service when determining the pricing
Upgradeable
so that there is a very good and self-funding reason to contact the policyholder on a regular basis
Distinctive
so that a clear and bold offer may be made to the prospect. The uniqueness may well come from the packaging, promotion or sales channel.
Designed for automation
with preferably little or no underwriting required
Ease of payment
ideally by PAC or credit card
Opportunity for cross-sell
Make it easy to accept the offer.
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