Allstate Removes Barriers that Keep Customers from Buying

May 4, 2011 Leave a comment

Insurance Provider Brilliantly Eases Consumers’ Hidden Fear

Life insurance should be one of those products that sells itself. It provides an abundance of benefits, including:

  1. Protecting those who depend on your paycheck.
  2. Paying off debts such as outstanding mortgage, medical bills, and funeral expenses.
  3. Providing college funding for your children.

Nothing matters more to us than our loved ones. There isn’t one husband who does not want a safety net for his spouse, or one mother who does not want to protect her children. Yet, the percentage of U.S. households with life insurance coverage is at its lowest point in 50 years.  Today, 30 percent of U.S. households (35 million) have absolutely no life insurance coverage, compared to 22 percent of households in 2004.

Why is this? I believe that it has to do with fear. Not the fear of “what if I die”, but rather the worry of “what if I don’t die”. If I don’t die, then that means I waste a lot of money on monthly premiums; money that I could have invested elsewhere or used to pay off debt. For many people, this notion is a tremendous barrier to getting life insurance coverage.

To help people overcome this barrier to life insurance, Allstate recently launched GoodForLife. What makes GoodForLife life insurance unique is that it gives you half of your premiums back when you turn 65. It still protects you in the event of death, but it also provides a benefit for living a long life.

This is an absolute brilliant move by Allstate. It removes the barrier that keeps many customers from buying life insurance by making it less risky.

Filed under Branding, Marketing Tagged with , ,

Nissan LEAF Helps Drivers Understand the ‘Value of Zero’

April 21, 2011 Leave a comment

Nissan Leaf: the Power of Zero

Zero is worth more than nothing. Zero is worth everything.

The latest commercial for the battery powered Nissan LEAF is a winner. The LEAF is the first all-electric vehicle from a major car maker and is a 100% battery car, unlike other electric-hybrids such as the Chevy Volt. What makes the spot so powerful is the way it communicates the car’s USP — zero emissions.

I have written before about the power of showing customers the benefits of your product, rather than telling them. This ad is a fantastic example of this concept of showing; it combines a simple idea with attention-grabbing imagery. The result is a spectacular ad that  enables customers to grasp the true value of zero.

Ad Copy: What is the value of Zero? Is it nothing? Imagine zero dependency on foreign oil. Zero pollutants in our environment. Zero depletion of the Ozone. Suddenly zero starts adding up. Which is why we at Nissan built a car inspired by zero. Because Zero is worth more than nothing, zero is worth everything.

Filed under Advertising, Brand Message, Marketing Tagged with , ,

Master the Art of Saying ‘No’ as a Brand Marketer

March 29, 2011 Leave a comment

Warren Buffett - The Oracle of Omaha

Legendary investor Warren Buffet once said, “The difference between successful people and very successful people is that very successful people say ‘no’ to almost everything.”

The same can be said for very successful brands and brand marketers—they have mastered the art of saying no.

Today, more than ever, there is enormous pressure on marketers to grow sales and market share. This means the temptation of new opportunities:

  • Targeting new market segments
  • Adding new products and line extensions
  • Abandoning tried and true methods for the latest ‘flavor of the week’

But wise is the marketer who adheres to the wisdom of the Oracle of Omaha. Sure, saying yes to these new opportunities could increase brand revenue in the short term, but are the long-term consequences really worth it?

What happens when you take a child the grocery store? They always find something they can’t live without. Would it be wise to continuously say yes and give into their every request? It would avoid the kicking and screaming in the short term, but doing so would reap the long term result of a child who is spoiled and undisciplined.

Please don’t misinterpret my post as an excuse to stay where you are, saying no to each and every new opportunity that comes your way. (Just ask Kodak how this worked out)

This is about saying no much, much more often. No to new opportunities. And no current business activities that are futile. Most importantly, it’s about making the right choices for your brand in the long run.

Filed under Branding, Focus Tagged with ,

Doing More with Less: Fewer Product Options Can Be a Valuable Differentiator

March 16, 2011 3 Comments

In my last post Is There Really Such a Thing as Too Many Choices?, I looked at how too many product choices can leave customers frustrated and unhappy. Everyone says they want more product choices, but studies have shown that more choice equates to less sales, sometimes by a factor of 10.

Most brands ignore this simple fact and continue to pump out new variations to give consumers what they ask for – more product choices. Because of this, offering fewer product choices (resulting in an easier purchase decision) is a huge differentiator in this cluttered market.

Here are some examples of doing more with less product choices:

Trader Joe’s

Trader Joe'sMost grocery stores carry around 40,000 different items. Trader Joe’s takes a different approach and stocks about 4,000 items. With all of the different choices, choosing an item at a grocery store can be a stress-filled experience – brand names, price, size options, flavor differences, ingredients. At Trader Joe’s, instead of choosing between fifteen or twenty types of Italian salad dressing, you are given only a few options. This makes for a better shopping experience and shoppers are often much happier with their purchase decision.

Apple

Apple's iMacWhen discussing the topic of simplifying the customer experience, Apple has to enter the conversation. They integrate this approach in all of their touchpoints, including the purchase process. They offer limited varieties of their products to minimize the amount of buyer confusion. Looking to buy a new desktop computer? Apple offers four variations of the iMac. Compare that to other computer manufacturers whose vast number of options can drive customers away; Dell currently offers 119 different types of desktop computers.

In-N-Out Burger

In-N-Out Menu Variety vs McDonald’sThis West coast burger chain offers only four food items on their menu; three burger varieties (hamburger, cheeseburger, and “Double-Double”) and French fries. This minimalist menu is the polar opposite of McDonald’s endless menu choices. (Click here to see a comparison). Limiting product choices has enabled In-N-Out to beat the almighty McDonald’s in average sales per store.

Google

The world’s most popular search engine has always been about simplifying the complexity of search. Their homepage doesn’t distract users and offers them a clear choice. There is power in simple.

Google Homepage vs AOL

These are some examples of brands that make the purchase process easier by limiting choices. There is a difference between listening to what customers want (more options) and truly understanding what it is they want (fewer options). Choose wisely.

Filed under Branding, Customer Experience, Marketing, Strategy Tagged with , , , , , ,

Is There Really Such a Thing as Too Many Choices?

March 11, 2011 Leave a comment

Too many product choices can leave consumers unhappy and afraid to buy.

Conventional marketing wisdom says that the more varieties of a product you have, the more you will sell. You can see this in action the next time you go grocery shopping; just take a stroll down the toothpaste aisle. However, more choices does not equate to more sales; in fact the opposite is true, it actually decreases sales.

Something strange happens when we are given too many choices…we become paralyzed and make no decision at all. Columbia University psychologist Sheena Iyengar ran an experiment to  study this phenomenon.

Her team set up a booth in a grocery store with free samples of jam. On the first day, 6 flavors were displayed; 40% of customers stopped to taste and 30% of those who stopped purchased jam. On the second day, 24 different flavors were displayed; 60% of customers stopped to taste and only 3% of those who stopped purchased jam.

These findings show that, at first, a variety of options seem highly appealing to consumers (40% vs. 60%). However, having too many choices drastically reduces the motivation for a customer to purchase the product. (30% vs. 3%) In this case, fewer choices led to 10 times more sales!

Not only do too many choices de-motivate consumers to purchase a product, but it also leads to a greater level of dissatisfaction. For instance, when looking for a new pair of jeans at the Gap, they will dozens of different styles. You may find a pair that fit damn good, however, they aren’t perfect. Watch Barry Schwartz as he describes his jean-buying adventure and why choices don’t make us happier, but more dissatisfied.

The Choice is Yours

All of this points to the fact that too much choice is bad for business. When consumers have too many  choices to make they end up more dissatisfied with their decision or don’t make a choice at all.

Every now and then a company recognizes the power of making the purchase decision easier. This will be the topic of my next blog post.

Filed under Branding, Marketing, Strategy Tagged with , , ,

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