In the current, ever-changing insurance space, differentiation is a growing challenge. Products are increasingly commoditized, with little differentiation in terms of the products and added value propositions. And, one begins to look like the other and the other and the other.
Whether a carrier, an MGA, a broker, an agent – the enhancement of technology and higher customer expectations have forced those in the insurance space to work harder than ever to stay distinctive amongst the competition.
Why Differentiation is Essential for Success
From a differentiation standpoint, the first order of business in the insurance space is to take a deep dive on what makes your organization different and better from the customer's perspective. The sooner this is determined, the faster you can use these unique value propositions to positively impact the bottom line.
For many companies, executing this exercise internally can be challenging. A third-party facilitator versed in Brand Distinction is best positioned to walk company leadership through a methodical approach to identify the attributes that distinguish the company from a field of competitors.
With lack of differentiation in the insurance industry being more the norm than not, the sooner you lock in your key differentiator, the sooner you will make strides to building a strong market position.
What Are Differentiated Unique Value Propositions?
Unique value propositions (UVPs) are clear statements that describe the key benefits of what you offer your customer base, how you solve your customer’s needs and what distinguishes you from the competition. Your UVPs should become the core of your messaging, showcased throughout your website, the pinnacle of every marketing campaign – and the mantra of your sales team. These are the descriptors of what your customers and prospective customers should think of when they think of you.
No matter the niche focus, more often than not, the standard insurance offering doesn’t vary much in the relevant competitive space. Because of this, your company needs to think outside the box in regard to what your differentiated unique value propositions are. Consider –
- Coverage differences between you and your key competition
- Pricing attributes – low-cost leader or the higher cost option with the most value propositions
- Speaking of … what are your value propositions?
- Ease of access through an intuitive online business platform that customers find turnkey
The ultimate goal: Be known as your UVPs.
From there, define and sell your knowledge and expertise. Show current and prospective customers your organization’s unique value as a collective group of insurance experts first and foremost. Earning their business becomes much easier once you’ve earned their trust.
In our next blog post, we will go into depth on how to showcase your company’s differentiation through inbound marketing and content marketing.
And if you’d like to continue the discussion with Hult, join us at the 2019 IMCA Annual Conference! Hult is exhibiting at IMCA (Insurance Marketing & Communications Association) June 23-26 in Minneapolis. Visit our booth to have a conversation about leveraging our team’s expertise and innovative technology in insurance marketing.