BIP Branding: The Pendulum SWINGS

Advertisers and marketers throw the word “branding” around under the assumption that if you advertise enough you will create a brand that is recognizable to consumers. But it’s not that easy.

There are three key elements to branding that take it beyond volume messages: It must have consumer meaning, it must be sustainable (in other words, the meaning must be consistent), and it must be competitive in that it differentiates your product or service from the competition.

The Insurance Brokers Association of Canada (IBAC) believes brokers are at the stage where in order to survive and flourish in a crowded and increasingly complicated marketplace, the broker identity program (bip) must be developed into a recognizable “brand”. 1999 marked ten years of advertising for the independent insurance broker in Canada. During that time, and with a limited budget compared to the competition, remarkable progress has been achieved in defining the difference between agents and brokers. Studies have found consumers prefer to buy insurance from a broker, and that is why today, independent brokers remain the premier distribution channel in Canada.

Times, however, are changing, and they are changing very quickly. It is now time to ensure that the consumer knows how to recognize the symbol of quality insurance advice, no matter how, when or where they purchase insurance.

E-commerce has become an established purchasing method in a short period of time. Everyone agrees the Internet is going to be a huge source for business — the question, though, is when. Nigel Dyer, a former personal lines marketing director for London & Edinburgh, and now a consultant specializing in distribution, was quoted, in the Journal of the Chartered Insurance Institute (London, England) as noting online insurance is as yet uncharted territory. “Simply keying in the word insurance leads to thousands of confusing references. In the old days, you would find listings in the Yellow Pages for A-Plan, or even Aadvark Insurance Brokers. How to be the first choice on the Internet still has to be resolved.”

Time will tell if branding the broker identity program symbol will accomplish this goal, but for now, the television and print campaign is a beginning. Branding a service, as well, is much more difficult than branding a product such as Coca Cola.

Branding the bipper is harder too because the proposition is more difficult and IBAC does not have the hundreds of millions of dollars that big national or international brands have as part of their war chest.

However, there are examples of branding by organizations that have been successful including the Good Housekeeping seal of approval, the CSA seal on appliances, and the CAA or AAA seal on motels and hotels indicating a preferred rating.

The key to branding in these instances has been to develop a clear definition and consumer understanding of the organization, and then to be consistent in applying the logo wherever it rightfully belongs.

IBAC and its eleven member associations are committed to the same strategy, continually reminding consumers of the broker’s superiority as a distributor of insurance and tying the symbol to specific, identifiable individual brokers and the companies they represent. This strategy will encourage consumers to directly link understanding and knowledge to their purchasing behaviour. The benefit to brokers and participating insurers is that a successful branding strategy will retain and enhance market share. We are confident that, in the long term, the pendulum will continue to swing back to brokers and supporting insurer partners.cu