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Insurance Articles
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Why Is FREE The Most Powerful Marketing Word You Can Use?
By James Burchill
Mis-sold Ppi I can remember going to my bank in the late 1990s to enquire about a loan for a new car. I`d fell in love with this slinky, silver sports car and being a single male at the time, with plenty of disposable income, I thought I`d treat myself to this flashy kind of motor. The bank eventually approved my loan but I was forced into taking out payment protection insurance at the same time. I`m not sure why I took it out to be honest. I think I felt pressured into taking out the policy because the person whom I spoke at the bank said it strengthen my initial loan application if PPI was in place. Nothing was explained to me about the PPI and how it would cover sickness payments or payments for the loan if I was made redundant. In fact, I think I was Mis-sold Ppi by the bank and had it not been so long ago I would put a claim in against the bank in question. Over the years countless customers have been Mis-sold Ppi policies through the banks. Huge profits could be made out of PPIs so you can see why banks would push them onto their customers. Today people are fighting back. Anyone who thinks they might have been Mis-sold Ppi polices in the past can speak to claims management firms who will take their case on and try to recover as many payments as possible.
So what does that have to do with ?FREE?? Quite a lot really. Firstly, business is a constant evolution - a process, you simply cannot remain still even if you are in the lead. You need to be constantly improving, constantly evolving and constantly looking for ways to differentiate yourself from the other guy. Here`s why: There are essentially three types of customers: ? Type 1 was going to become your customer no matter what.
Type 3 customers are sitting in the middle, they`re on the fence. They need a little nudging - sure, some will require more nudging than others, but nudging will be required. Type 3 is your target market customer. Type 3 customers represent about 75% of the population so don?t worry about missing out on the others. Now, let`s think about this for a moment. You do a great job. You offer fair prices, you excel at what you do and you advertise this. The problem often faced is that the bad companies can hire good marketing consultants and present that same great image - and type 3 customers know this. Type 3 customers are naturally distrusting of the claims made, so you include proof and other objection defeating tactics and this of course works just fine. However, even with the proof, even with the objections all nailed down, there are still some folks who require "more proof", more nudging. The kind that says, "Don`t tell me... SHOW ME!" So how do you show them? That`s easy; you give them a sample, a demonstration, a taster of just how great you really are. You offer them a chance to come and see for themselves - at no risk to them. Now pay close attention here ? this is critically important. You`re taking away ALL THE RISK so that they can "try before they buy". In other words... it`s FREE. The largest corporations do it. They?ve found FREE so successful they use risk reversal as often as possible, they even offer unconditional money-back guarantees too! The strongest offers are always "try first, and if you like it then pay" and for you this might be a "Free oil change", or a ?FREE tire rotation?, or a ?FREE 21-point seasonal inspection?, or some other `risk reversal` strategy. With this lead generating, ?loss leader? strategy you?re taking a big picture approach and you`re buying customers by showing them what they`ll get when they become paying customers. Moreover, if any of your colleagues make strange comments, just remember, this is a risk reversal program. You are giving customers the chance to "TRY BEFORE THEY BUY". In addition, if anyone says something like this to you, "Is this really the type of customers you want?" I`d say that sounds like a typical Type 1 customer comment (remember type 1`s were already in your camp) and more importantly you should answer a resounding "Yes!? Just because someone is skeptical, just because someone wants you to make it easy for them to try your product or service before they commit to you doesn`t make them a bad customer or a cheap customer. It makes them normal. It?s a bit like dating without all the embarrassing bits? And when you `trust` them with a `free` introduction, the law of `reciprocity` begins working - people will want to `pay you back` for your trust in them. Remember, people only deal with other people they like and trust ? and this is a great way to start that relationship off on the right foot. That is why "FREE" Is The Most Powerful Marketing Word You Can Use ? because it?s all about - risk reversal. 
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