Royal London recently announced a major re-branding exercise with the future scrapping of two of its most well-known brand names, Scottish Provident and Bright Grey. Does ‘brand awareness' matter among clients or consumers when it comes to picking a particular insurance policy over another?
Damian O’Connor, Roxburgh Financial Management
We have experienced cases where we’ve made a recommendation and the client hasn’t heard of that company even if it is substantial, old or well-respected. Sometimes the customer may feel a little nervous. So there’s no question that insurers benefit from spending a lot of money on making their brand visible.
However it also depends whether you’re operating in an advisory world or a non-advisory world.
In an advisory world, if you have the trust of the client, you’re giving a full recommendation and you explain why you are recommending perhaps a relatively small friendly society. Even though that company may not advertise in the public space, clients are more comfortable with that approach.
In a non-advised environment, where you’re leaving the choice to the customer and you are just giving them the facts and information, often they will select the provider they have seen a TV advertisement for.
Ultimately as advisers we would always make the best recommendation for the client, irrespective of the brand, and the brand is not relevant to us. Financial strength and service are important, but ultimately we’re looking to make the best recommendation for the client.
With the Royal London rebrand, I never understood why companies took what could be a big and powerful brand that could be promoted in a number of different areas in financial services and segment the company into different brand names. To me that almost dilutes the power of the brand.
Susan Landers, Allianz Worldwide Care
Brand awareness does matter and it can and does influence a client’s decision, particularly in a somewhat homogenised sector such as private medical insurance.
But brand awareness is not about shouting the loudest. It’s about standing out from the crowd and backing up your brand with evidence of your company’s unique offering.
From day one, Allianz Worldwide Care’s unique selling point was the quality of its client service. The company is part of the Allianz Group, a trusted and respected global brand and, according to Interbrand, one of the most recognised brands in the world. Being aware of the Allianz name offered clients a degree of trust when it came to dealing with us for the first time.
While we benefited from being part of the Allianz Group, it was important that we developed a company with its own credentials and personality, one that was trusted and selected not only because people recognised the name, but because the company delivered on its promises.
But, while brand awareness is important, it is imperative to live up to your brand promise. Failure to do so will result in a damaged reputation. Staying true to your unique selling point has to be the focus and this focus was on providing the best possible service to clients.
It’s an interesting debate and I’m delighted the Commission has highlighted something that’s been an issue for a decade, if not longer.
