Ruchika Varma, Chief Marketing Officer of Future Generali India Insurance shares her insight on why making the BFSI category more approachable to consumers is the key to achieving both industry growth and customer satisfaction.
Should we seek the opinion and feedback of those watching the Banking, Financial Services, and Insurance or BFSI industry, from the outside, am certain they view us as an industry walled by a complicated web of jargon and technical terms. Their view of the sector revolves around the fact that, for ages, finance and its corollaries have been considered outside the parlance of the laypeople.
As someone on the inside, I strongly feel that it is time to change this rather technical industry into a segment that is approachable and lively, a sector that becomes as comprehensible as it is imperative. This means becoming an enduring part of the customer’s journey, rather than only making special appearances at select moments.
Here are some ways that marketing professionals in the industry can adapt to demystify the category and create a lasting bond with the customer:
Create An Emotional Connect
Traditionally, most BFSI marketing is primarily focused on left-brain marketing, i.e., appealing to the logical and practical side of the consumer. This means that the storytelling is educative, feature-focused, fact-based, and functional. But, this, also, means that we run the risk of neglecting the fact that human beings are emotional by nature.
Therefore, while the product/service may need to appeal to the logical thinker, there is still the need to create an emotional connection with the audience by embracing a right-brain marketing approach.
For instance, the blurred line between personal life and professional life during the lockdown, fear of loss of job, loss of income, anxiety around health, etc., have all resulted in the increase in mental health issues. And so, at FGII, we have made mental health awareness a pivotal part of our brand strategy, not only offering mental wellness products but also creating a heartfelt empathetic message about the need to focus on mental health.
Sell Hope, Not Fear
Most narratives try to get consumers to consider buying financial products, especially insurance, by creating fear in their minds, with the underlying idea being ‘create a safety net’, ‘a reliable pillar of support in your old age’, ‘invest now or repent later’. However, rather than relying on fear psychosis, weave positive conversations and create contextual marketing messages that resonate with the consumers.
Why should BFSI marketing be any different from retail marketing, which focuses on desires, wants, and feel-good messages which leave consumers in a better frame of mind?
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Differentiated Value Proposition
Modern-day consumer is better informed, has discerning taste, and demands more options, whether it is a product or a service.
The focus needs to shift from merely selling the product or offering cookie-cutter solutions to finding a way to be relevant to the consumer’s reality and unique needs.
Therefore, in the insurance segment, micro-segmentation, following a needs-based approach, will give brands a right to win with the customer.
Consumers can now seek protection against specific illnesses such as COVID-19, cancer, or mental health or opt for a plethora of insurance covers targeted at specific groups, such as gig workers and essential support staff. While this may have made the work of BFSI marketing and communication teams more voluminous, but it has also simplified our target groups—we know exactly what to pitch, and whom to pitch it to, to ensure optimal coverage and customer retention.
Leveraging Digital & Technology
Customers are connected digitally like never before. We are a country of 825 million internet users and 600 million smartphones. Today, the consumer’s lifestyle is ruled by FinTech, EdTech, digital gaming, online fitness, and digital meetings. BFSI brands, especially insurance brands, have to re-invent themselves to find a place in this new digital world. Digitisation of the sales process is just the starting point.
The future lies in providing digital self-servicing platforms that infuse simplicity and convenience in the life of consumers.
For example, according to the Ministry of Electronics and Information Technology (MeITY), there are 53 crores users on WhatsApp today. In order to service them at a platform they are comfortable with, we have, at FGII, developed a self-servicing platform on WhatsApp, where customers can easily manage their policies and renew them. In addition, there is a great opportunity for brands to arm agents with the right tools to enable digital prospecting. BFSI companies are, also, increasingly leveraging technology to map and study consumers’ evolving preferences and behaviour patterns, to understand the target audience, as well as generate powerful stories and create content that has a positive impact.
Be Part Of The Audience’s Environment
Inarguably, consumer behaviour has changed during the pandemic. The number of social media users in India has increased by 78 million (+21%) between 2020 and 2021. Influencers have emerged as key players in the marketing space and have begun to feature on several BFSI brand’s marketing strategies. Similarly, the way we consume entertainment has changed drastically. According to the India Brand Equity Foundation, paid subscriptions on OTT video platforms grew to 29 million, registering a staggering growth of 31% in the first four months of the pandemic. Using these platforms in the media mix will help the brand connect with the audience, where they are most comfortable.
BFSI may be a technical field, but with simple and honest communication that is devoid of jargons and a clear brand message, one can establish an emotional connect with the consumer. This will ensure not just brand recall but brand loyalty - an asset of immeasurable value for any brand.
The article is authored by Ruchika Varma, Chief Marketing Officer of Future Generali India Insurance.
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