How Bennett’s used Apt Strategies concerning Social Media to Beat its Competitors?
There are a number of companies who are in the business of offering services to people which are of great benefit to them. Insurance companies are one of the few companies which offer a service so that a person come to them or through a proxy after buying any valuable thing or vehicle. The whole process of insurance looks pretty easy and simple enough but it isn’t. Let me offer you an example of Bennetts, UK’s no. 1 bike insurer as how it was ranked high, then lost its Numero Uno position and then regained the number 1 ranking.
Bennett’s are UK’s number one bike insurance company with around 90 years of experience in this field. Till 2007 they lead the market with over 50% of the market share but with the introduction of price comparison websites, this totally the changed the dynamics of the market. People certainly got a perfect opportunity get the cheapest insurance and chose a plan according to their requirements. This started to make a dent to the Bennett’s.
Bennett’s Started to Lose Steam in 2007
Right after the price comparison websites hit the market, Bennett’s and other companies started to feel the heat. There are many ways in which it become the de-facto standard for people to get the quotes and hence a company which offered a rate that suits them. Suddenly Bennett’s was caught red face and it had to think about something to turnaround the situation. There were many ways in which it needs to change its tactics with keeping into account the price comparison websites.
Bennett’s lost 14% of the market value and within a few months after price comparison websites hit the market, it was thinking about a strategy that can change its fortunes for the better.
How Bennett’s Turnaround the Scenario in its Favor?
Bennett’s opted for a brand new strategy so that to make a dent in the market for other firms who were benefiting from the price comparison websites. It looked to initiate a social media marketing strategy with its target audience in mind, i.e. motorcycle riders interested in bike insurance. The fact that over 74% of the bike riders were relying on price comparison websites as the ultimate tool, it was inevitable for Bennett’s to use this website too to their advantage.
Bennetts places the bikers at the heart of all their strategies for spending all the budget on luring this segment. Bennetts were using Facebook, Twitter and YouTube but all were in the unofficial category. That’s where they needed to change their tactics and they did just that. So exactly how did they do that will now be discussed in the subsequent paragraphs.
Amazing Tactics and Strategies by Bennett’s
“Biking Dreams” was the first initiative they started and it made a big dent in the profits of other insurance companies competing with Bennett’s. It was all about an experience of a lifetime as it offered a biker after signing up with Bennett’s to meet a biker he idolized for life or have a VIP pass to visit the Ducati factor, for example. Bennett’s started to promote all these through every social media channels they deemed fit for their campaign. Not long time passed and Bennett’s started to get positive results after starting to post the “Biking Dreams” promotional offer.
Bennetts also developed dull customer servicing across FB and Twitter so that offering customers to contact them easily. Then they launched their own network for bikers in the form of Bike Social which turned out to be a monstrous hit. And the results were for anyone to be seen. Bennetts’ sales figures started to rise with thousands of FB fans and millions of YouTube views. The advertising spending on major websites started to decline and brand awareness went up by 20%. That was a real success for Bennetts as they were going down and out and industry pundits were righting off Bennetts from their radar but they bounced back and how.
The success of Bennett’s and the campaign they launched is a classic example of how companies can use the power of social media to turn the tables in their favor. If you want to ask me some questions or want to offer your feedback for this blog, please use the comments section below.