Distribution of insurance through Affinity programs in the USA is constantly changing, as concluded by Tyson and Drowne in a research for PIMA. It forces Affinity Program Managers to embrace change and manage various pressures.
The authors see many challenges in the Affinity Arena.
- Both the way the products are distributed through (e.g. the Sponsor) and how it is distributed (the method, e.g. worksite) are being impacted. There is “marketing fatigue” across the entire direct marketing spectrum, putting some more mature programs at risk due to the inability to add new, younger members into these mature insurance pools. There have been cuts in budgets and stricter adherence to ROI standards-of-perform.
- A changed landscape of “Mass Distributors” in the age of “Creative Destruction” and a mistrust of both Advertisers and traditional Institutions.
- Changes in methods of distribution due to changes in technology and consumer behavior…the proliferation of inbound and outbound channels, new methods of interaction and service that consumers demand.
- Drivers impacting each distribution “segment”.
- Legal and Regulatory Challenges.
The authors conclude as a result of these transforming trends that Affinity program managers and marketers have to embrace change, adapt, balance and manage various pressures, while considering various options to define their futures. In their article they specify some thoughts on what many of the industry leaders can do to compete in this dynamic marketplace.
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