“Get Naked on your car”.
YES, that is a marketing initiative from the new market disrupter Naked Insurance. Naked Insurance opened its doors in 2018. Today, only 7 years old the company is known for being as unique as its lime green and black brand colours. The company boasts different and starts conversations with either its marketing initiatives or its Naked Difference payments, which donate money to organisations voted for by their customers. An excerpt from the Naked blog about the Naked Difference tells us so much about the company focus “The Naked Difference is all about changing insurance to break the cycle of distrust between insurers and their clients and making an impact across South Africa”.
Usually, when you think of insurance you think of a big corporate building, with very corporate colours, a strict and serious tone of voice, and a few people in suits around a big boardroom table, hiding the small print of your policy from you so they can take your money and not pay you when you need them to. That’s not the case with Naked, and they are shouting it from the rooftops.
Image source: Behance
Naked Insurance has effectively differentiated itself from a very saturated insurance market by being everything most insurance companies are not. It’s bold, a little goofy, futuristic, transparent, and affordable.
Their positioning strategy is making their products simple and transparent to understand and use by using something we all use every day, technology. Through their online platform, they allow customers to personalise their insurance coverage based on their needs, manage their claims, and even adjust their premiums. Naked’s focus on digital innovation allowed its customers, who value convenience due to their busy lives use its products effortlessly.
Naked also uses AI (artificial intelligence) and machine learning which enables them to offer more accurate risk assessments which in turn allows for better insurance premiums. This technology-driven strategy allowed Naked to differentiate itself from its traditional competitors. Their clear jargon-free policies make trusting the brand easier because there is no misunderstanding about what you sign up for and the transparent pricing options are a big bonus too.
Another way Naked has differentiated itself is through its marketing and communication. Using phrases and campaigns like “Get Naked on your car” or “It’s insurance, but it’s human” or “Never phone a call centre when you’re Naked.” using their tone of voice to show that insurance does not have to be serious. Insurance can be an easy, fun thing that you must have. Their ads and sayings are hilarious and a little cheeky too. Their name Naked also refers to their focus on transparency and openness and they represent their values and focus every chance they get. For example, Naked Insurance does not have a call centre, because everything is done on their app.
The ramifications of successful positioning and differentiation:
Naked’s uniqueness and transparency have led them to attract a loyal customer base, especially from a younger audience which has helped the company grow substantially. We all have technology we all want convenience and ease and Naked provided what their customers needed because they understood their targeting needs. If you look at their brand positioning statement you can see they are in the winning zone between 1. What consumers want and 2. What the brand does/offers. This assisted in gaining a big market share from competitors. This means that Naked can command premium pricing.
By focusing on customer service, to-the-point marketing and products and technology, Naked’s positioning, and differentiation strategies have given the brand an advantage in the insurance industry and made them top of customers mind and easy to pick out from the selection set.
Blog Image Credit: Naked Insurance
Sources: Naked Insurance Blog