 "Healthy, wealthy, wise")
We live in interesting times. The world as we know it is constantly evolving and change is everywhere: changes in consumer behaviour, products, media options and the marketplace. For a marketer, this is challenging and exciting at the same time. The consumer is talking to us in many ways, giving us feedback when we least expect it and in ways that were unknown to us. Brands and organisations that embrace this change and keep their ears open to the chatter will emerge as the new leaders. It is time to turn the traditional on its head and look for the unconventional.
As a category, health insurance is one of the least penetrated in a country of our size and disease incidence. It is a "product" which is not in the need basket of most of the consumers. The traditional model of selling has been push-based and at most times motivated as a tax-saving mechanism. But we are waking up to the reality of today.
Past: Indians had an optimistic view of their health and future typified by a "nothing can happen to me" attitude.
Current reality: Disease incidence is at an all-time high, cost of treatment is increasing and consumers are realising that they "are not invincible".
Past: "If I had heard of the brand and someone came to sell it to me, I would buy" used to be the typical consumer reaction.
Current reality: Increased internet penetration is leading to consumers seeking out information (which is not easy to access), comparing and making informed choices.
So what does it mean for the marketers of health insurance?
* First, they need to make the brand relevant to the consumer. It is no longer enough just to be known. Users are comparing insurance brands and schemes and seeking out information, which makes it imperative to be a relevant brand rather than just a known brand. With push-based sales decreasing, brand awareness is not the only measure of success.
* They should make a promise and deliver: Users are looking for word-of-mouth on the web; they are accessing experiences others have had with a brand across the geo constraints. Brands no longer exist in a cocoon; and marketers can no longer wish anything away.
* They must create reasons for purchase: Trust is hygiene; heritage is a good-to-have but not a must-have. Consumers these days get used to new brands fast. For instance, a must-have for any music buff today, the iPod didn't exist a few years ago. As long as marketers create a compelling reason to purchase, the consumer will put the brand in her consideration set.
Marketing as a function is now an extension of each of the various elements of the organisation, especially in health insurance, where companies are in the business of settling claims. The next level is about understanding what appeals to the consumers, and there is a myriad of techniques to help. But it boils down to speaking with enough number of consumers and understanding what drives their lives. Consumer research by Bupa in 2012 across several countries, including India, has revealed several insights which have influenced our marketing communication and product design. The important insights include the following:
* Family over self: A predominantly Asian trait is that individuals prioritise family over self. In the Indian context, family includes elderly parents and not just the nuclear family unit. Interestingly, 65 per cent of parents in India expect their children to take care of their healthcare. This is in stark contrast to the Western markets.
* Relationships and experience: From price being the main determinant of purchase decisions, consumers are now valuing relationships and attach a value to the experience as well.
* What is 'old'? At what point do people think of themselves as old. In India, more people think that old age sets in before 60 than after! This is not intuitive considering that official retirement age typically is 60 and upwards in the country.
* Health awareness: A paradigm shift is happening in the country on the health awareness front. People now understand preventive healthcare versus reactive, which is very different from a few years ago.
These insights heavily determine what a health insurance brand's communication should be. Our latest campaign addressing the extended family is a case in point. In the health insurance segment, communication should focus on driving trust and inducing healthy behaviour rather than fear. Brands which deliver experiential value and not just low price are more likely to succeed in the future.
The health insurance space is heating up, there is clutter emerging for the first time in many years. Herein lies opportunity. There is clutter in the marketplace but that does not mean that the space is about to plateau out. Health insurance penetration level is at 5 per cent, which means that we are just scratching the surface. There are areas where effective marketing can create a large opportunity, to be reaped later.
* Tier II, III opportunity: This untapped opportunity has been talked about quite often, but remains an interesting challenge for brands, not only in health insurance but across all industry verticals. The marketing and branding strategy that would work best in this scenario is something which requires the best marketing practitioners to work together.
* Distinctive 'mass' offerings: This boils down to a good marketing segmentation exercise and tailoring different communication types to different segments. The one-size-fits-all approach never worked for products, nor will it work for marketing communication.
* Digital media: I foresee (as do several others) 2013 being the year when e-commerce really comes to life - when the chaff gets blown away and the wheat remains. What this also means that marketers need to be ready to tackle the consumers who spend most of their time online, surfing, searching for information or connecting on social platforms.
Coming back to the point about the enormous flux today and the clutter, I believe that the next few years might be a lifetime opportunity for marketing practitioners and strategists to shape the brands they lead.
As a category, health insurance is one of the least penetrated in a country of our size and disease incidence. It is a "product" which is not in the need basket of most of the consumers. The traditional model of selling has been push-based and at most times motivated as a tax-saving mechanism. But we are waking up to the reality of today.
Past: Indians had an optimistic view of their health and future typified by a "nothing can happen to me" attitude.
Current reality: Disease incidence is at an all-time high, cost of treatment is increasing and consumers are realising that they "are not invincible".
Past: "If I had heard of the brand and someone came to sell it to me, I would buy" used to be the typical consumer reaction.
Current reality: Increased internet penetration is leading to consumers seeking out information (which is not easy to access), comparing and making informed choices.
So what does it mean for the marketers of health insurance?
* First, they need to make the brand relevant to the consumer. It is no longer enough just to be known. Users are comparing insurance brands and schemes and seeking out information, which makes it imperative to be a relevant brand rather than just a known brand. With push-based sales decreasing, brand awareness is not the only measure of success.
* They should make a promise and deliver: Users are looking for word-of-mouth on the web; they are accessing experiences others have had with a brand across the geo constraints. Brands no longer exist in a cocoon; and marketers can no longer wish anything away.
* They must create reasons for purchase: Trust is hygiene; heritage is a good-to-have but not a must-have. Consumers these days get used to new brands fast. For instance, a must-have for any music buff today, the iPod didn't exist a few years ago. As long as marketers create a compelling reason to purchase, the consumer will put the brand in her consideration set.
Marketing as a function is now an extension of each of the various elements of the organisation, especially in health insurance, where companies are in the business of settling claims. The next level is about understanding what appeals to the consumers, and there is a myriad of techniques to help. But it boils down to speaking with enough number of consumers and understanding what drives their lives. Consumer research by Bupa in 2012 across several countries, including India, has revealed several insights which have influenced our marketing communication and product design. The important insights include the following:
* Family over self: A predominantly Asian trait is that individuals prioritise family over self. In the Indian context, family includes elderly parents and not just the nuclear family unit. Interestingly, 65 per cent of parents in India expect their children to take care of their healthcare. This is in stark contrast to the Western markets.
* Relationships and experience: From price being the main determinant of purchase decisions, consumers are now valuing relationships and attach a value to the experience as well.
* What is 'old'? At what point do people think of themselves as old. In India, more people think that old age sets in before 60 than after! This is not intuitive considering that official retirement age typically is 60 and upwards in the country.
* Health awareness: A paradigm shift is happening in the country on the health awareness front. People now understand preventive healthcare versus reactive, which is very different from a few years ago.
These insights heavily determine what a health insurance brand's communication should be. Our latest campaign addressing the extended family is a case in point. In the health insurance segment, communication should focus on driving trust and inducing healthy behaviour rather than fear. Brands which deliver experiential value and not just low price are more likely to succeed in the future.
The health insurance space is heating up, there is clutter emerging for the first time in many years. Herein lies opportunity. There is clutter in the marketplace but that does not mean that the space is about to plateau out. Health insurance penetration level is at 5 per cent, which means that we are just scratching the surface. There are areas where effective marketing can create a large opportunity, to be reaped later.
* Tier II, III opportunity: This untapped opportunity has been talked about quite often, but remains an interesting challenge for brands, not only in health insurance but across all industry verticals. The marketing and branding strategy that would work best in this scenario is something which requires the best marketing practitioners to work together.
* Distinctive 'mass' offerings: This boils down to a good marketing segmentation exercise and tailoring different communication types to different segments. The one-size-fits-all approach never worked for products, nor will it work for marketing communication.
* Digital media: I foresee (as do several others) 2013 being the year when e-commerce really comes to life - when the chaff gets blown away and the wheat remains. What this also means that marketers need to be ready to tackle the consumers who spend most of their time online, surfing, searching for information or connecting on social platforms.
Coming back to the point about the enormous flux today and the clutter, I believe that the next few years might be a lifetime opportunity for marketing practitioners and strategists to shape the brands they lead.
Sevantika Bhandari
Director, Marketing, Max Bupa Health Insurance