The group benefits ecosystem —insurance and retirement products —is a growing market in the United States. Employees now have more options than ever, whether enrolling family members or adding auxiliary products to their plan. Unfortunately, as the market grows, competition gets fiercer. Group insurance providers can no longer rely on traditional marketing models, as consumers are growing less trustful of the industry.
Why indirect models weaken brand connection
Historically, insurers’ marketing model focused on the middleman, the broker. This B2B2C model limits the direct interaction the employee has with the brand itself. No matter the strength of the product, this model can still create customer mistrust. To combat eroding trust, benefits firms must create broader emotional appeals to the consumer through strong brand messaging.
Why build a strong brand?
Strong brand salience can help consumers differentiate between benefits products in this increasingly crowded industry. When employees trust a brand, they’re more likely to opt for higher-value plans—transforming a basic individual policy into full family coverage. And that matters: in 2023, the average American employee spent over $8,000 on single coverage premiums and nearly three times that for family coverage.. These expenditures have been increasing around 5% annually over the last 5 years (KFF). Furthermore, companies are evolving to offer more auxiliary insurance options, such as pet coverage. When employees trust a brand, they’re more likely to add extras—while unfamiliarity or lack of connection can cost the company those valuable add-ons.
By increasing the consumer’s affinity for their brand, an insurance company can set themselves apart from their competitors, enhance the impact of their typical marketing tactics, and plant the seeds for the long-term trust not always generated by demand harvesting tactics.
Building brand salience
Most benefits companies aren’t investing in large-scale, emotional brand marketing—and it shows. Here’s why that needs to change:
- Lack of comparison shopping. Buyers aren’t choosing based on premiums or investment performance. The products all feel similar—and that’s the problem. To build brand affinity and stand out from the competition, companies must be bold and begin long-term emotional marketing.
- Companies have more audience data than ever—and should use it to their advantage when targeting consumers. Tell human stories that someone can relate to – don’t lean on functional benefits that only marginally differentiate from the competition.
- Still think full-funnel. Investing in brand-building does not mean abandoning mid- and lower-funnel marketing, as closing the deal remains key, but rather it means adapting to continue evolving with the marketplace while standing out from the competition.
Measuring what matters
Despite the clear value of brand in driving trust, loyalty, and higher-value coverage selections, many benefits marketers hesitate to invest in brand-building—largely because it’s hard to measure. The impact isn’t always immediate, and without the right data science approach, it can be difficult to prove ROI. But avoiding brand investment because it’s “hard to quantify” is a missed opportunity.
If you’re wondering how to make brand more measurable and defensible, don’t miss our this blog, “Delivering brand success backed by data science.” We break down how to leverage data/latent factors to optimize brand building and strategy.
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