For banks and credit unions struggling to increase non-interest income, a simple problem could be to blame. Consumers may not know much—or anything at all—about your products and services. Well over half of consumers say they weren’t aware that their financial institution offered insurance products.*
This alarming lack of awareness casts a long shadow over consumer satisfaction and, ultimately, bottom line. Left unchecked, the problem becomes more serious. If consumers don’t know that the products they want are available, their trust and loyalty start to deteriorate.
Solve the Awareness Gap to Boost Non-Interest Income
Trust remains the number one reason* that consumers want to purchase insurance offered by their bank or credit union, ranking even above price. The biggest hurdle financial institutions face in increasing non-interest income is a lack of familiarity.
Bringing awareness lays the foundation, and familiarity builds on awareness. Trust is then cultivated through familiarity and positive experiences. If consumers understand a product and believe it will meet their needs, they’re more likely to trust the company behind it.
Awareness usually includes education. It’s not uncommon for consumers to find themselves bewildered by the complexities of financial products, from insurance to investment services. This confusion is exacerbated by industry jargon, making it difficult for consumers to make informed decisions.
Many banks and credit unions inadvertently create obstacles for consumers by burying essential information about insurance or other products deep within their websites. Often categorized under the vague and broad term “investments,” insurance products become hidden in plain sight. This oversight is a missed opportunity to educate consumers about the important role insurance can play in financial planning.
By making insurance products hard to find, these institutions not only impede awareness, but they also erode trust. Consumers expect transparency and accessibility. When they can’t easily find the information they need, it creates a perception of indifference or even dishonesty.
Let us help you bring awareness to in-demand insurance products.
How does a financial institution overcome the awareness gap? Our clients have seen great success using these tactics:
- Drive engagement. Financial institutions can increase engagement and loyalty by tailoring insurance offerings to meet specific needs. Prioritizing consumer needs builds trusts and positions a bank or credit union as a reliable financial partner. Examples of this include adding products like recuperative care insurance to help support the financial health of the Sandwich Generation.
- Use omnichannel to educate. More marketing channels means more opportunities to raise awareness. At Franklin Madison, we implement an omnichannel marketing strategy on behalf of our clients for this purpose. Leveraging multiple channels, like email, in-app notifications, direct mail, and branch promotions, ensures that the marketing message reaches a broader audience.
- Add embedded offers. Integrating insurance products seamlessly into existing financial services enhances convenience and increases product visibility. Consumers also say that they want to buy their insurance from convenient places.* By embedding insurance within online banking platforms, mobile apps, or loan applications, financial institutions can make products easy to access.
- Target younger consumers. To effectively drive awareness, it only makes sense to target one of the largest growing segments. Younger and high-income consumers are the groups found to be particularly interested in purchasing insurance from their financial institution.*
- Integrate data analytics. By analyzing consumer data, financial institutions can identify specific segments with high buying potential. This allows for targeted marketing campaigns and awareness efforts. For instance, data might reveal that consumers with a mortgage and children at home are more likely to be interested in buying life insurance.
Let’s say a young professional has a checking and savings account at a bank. She’s aware of basic banking services, like debit cards and bill pay, but she hasn’t heard of any additional offerings, including the various types of insurance.
Like most young professionals, she spends most of her time online and soon realizes one of her accounts has been hacked. Since she wasn’t aware her bank offered cyber insurance, she never bought it. Now, she has to spend hours disputing charges and months rebuilding her credit after being the victim of identity theft.
Once consumers are aware of products like cyber and recuperative care, will they then purchase? Awareness is the first step in a consumer’s journey—and it’s a critical one. Increased awareness can lead to a better understanding of risks consumers may face and the role insurance plays in mitigating them. When consumers see insurance as a solution, they’re more likely to compare products and consider their options.
Despite the importance of awareness in driving non-interest income, nearly half of consumers reported receiving no information about insurance products from their financial institution in the past year.* Local and regional banks have the most opportunity as their consumers were the least likely to learn about insurance.
Outside studies of German and Swiss banks found that sending consumers relevant, data-driven offers raised the upsell rate by 19 percent. Among our clients, we’ve seen annual premiums grow by as much as 1,119 percent when using data modeling to send targeted insurance offers to responsive consumers.
It Starts with Offering the Right Insurance Products
At Franklin Madison, we specialize in using data-driven strategies to get the right offers in front of the right consumers. Our approach to smarter insurance marketing yields proven results in increasing non-interest income and maximizing ROI. Want to learn more? Let’s have a conversation.