SME Branding Lesson #11 – Be Straight in Your Communications

Tesco Pet Insurance Brand Communications
Brand communications that lost them my loyalty and custom.

I received a letter from Tesco pet insurance about the renewal of our policy. The letter suggested an upgrade of the policy and mentioned just on the side the new monthly fee. It was more than double to what I signed up for. I did the ‘usual’ shopping around and found a cheaper offer – with the same or nearly the same benefits. I called and spoke to a chap to cancel the policy and he mentioned that I did have the ‘save 50%’ special offer last year. Sadly, by then my mind was made up.
Why do I mention this?
In my mind, the brand communication went wrong in a few ways. The letter of renewal arrived late and gave hardly any time to consider. It mentioned nowhere the reason for the dramatic increase – e.g. the special offer from the last year – or any reasons why I should renew. It was written in typical lawyers talk mixed with marketing speech and fact I had to hunt down where the actual monthly costs were displayed (ok, so I am blind to right hand column advertising on google and facebook) made the whole experience annoying.
The Tesco brand positions itself as great value for money – their policy communications did not get that brand promise across.
What would I change?

  • Be nice to your existing customers! They have no real reason to stay loyal other than being happy with your product and service – and with the way you treat them. Whether you are a small business or Tesco, customers today expect to feel valued and not just like sheep led along…
  • Be upfront! Explain your charges, why they occur, why they increase, what the benefits are. You can always use the psychology of feeling loss much more than feeling a gain and highlight what the client will miss out on if they leave. Most importantly though, don’t try to hide any money issues.
  • Be creative! How nice would it have been to have received a letter or some other form of communication from Tesco a couple of months before the anniversary, perhaps something pet related, telling me ‘thank you’ (especially since I never made a successful claim) and told me about the new fees well in advance with reasons why and future benefits of staying on. (No claims policy comes to mind!!!) Even some clubcard offer relating to pets would have made a difference and not cost them much.
  • Be flexible! With rate increases comes frustration. Try to find a solution that keeps the customer happy and keeps you as their service provider. Perhaps you can tailor the service to match their budget even if it means they lose some benefits. They may prefer that to moving company. It’s at least worth a try.
  • Stay nice. That’s the only thing I can’t complain about Tesco. The chap on the phone remained nice and friendly and did not try to persuade me as I have experienced with other insurances in the past. If someone has made their mind up and wants to leave, let them go. They will be more likely to keep you in good stead than trying to convince them with more sales banter.

I shall await the new brand experience offered by Tesco’s competitor! Perhaps it will make me stay another year.

attitude, brand management, Brand Strategy, differentiation, SME

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