In business, disruption in the market is inevitable. New ideas, better methods, improved tools, and sudden shifts can all create tectonic change. And, in the modern era, these changes can happen practically overnight. So, if you’re brand isn’t hearing your customers, they may be someone else’s customers before you realize it.
One of the largest – and oldest – currently operating businesses in the United States, John Hancock insurance, recently faced that stark reality. For more than 150 years, the life insurance market operated on pretty much the same business model. But, recently, consumer needs and wants have shifted, and these consumers, offered myriad options at the touch of a screen, are starting to find these needs being met in different ways.
For John Hancock, these market realities necessitated an abrupt and drastic change, explained in the following statement:
“John Hancock … will no longer sell traditional life insurance policies. All of our policies will come with John Hancock Vitality – a platform designed to help policyholders live longer, healthier lives by giving people incentives to make healthier choices linked to physical activity, nutrition and mindfulness. Our path here started with a simple, revolutionary thought: Your life insurance company should care how long and well you live…”
Someone who understands the insurance industry may read that statement and think, “well, sure, of course insurance companies want their customers to live longer… That helps their bottom line…”
Hancock’s message anticipates that perspective and addresses it, offering this:
“For too long, our industry wasn’t truly investing in the very thing it is designed to protect: life… The time to act is now – lifestyle diseases are now the primary cause of death in America. Today just four choices — physical inactivity, unhealthy diet, excessive alcohol and smoking — cause more than 60 percent of deaths and 80 percent of the disease burden in the United States, according to the Oxford Health Alliance…”
This statement reads as bold and bluntly honest. While, yes, Hancock knows longer-living people mean a stronger bottom line, the company is introducing initiatives to help improve the quality of those lives as well.
This message is communicated in simple terms, with an easy-to-remember list of “enemies” to combat: lack of exercise, bad diets, too much alcohol, and smoking. There’s also a collective call to action. John Hancock has announced its intentions, but the tone and the message implies an invitation for consumers to come along with them.
This is a smart tactic to take in communicating this change. Making it about responding directly to consumers’ needs and offering to partner with them in building a happy, healthier life, shifts the focus away from the “change,” which people often dislike, and onto the “features and benefits” being offered.