4 Ways Mobile Insurers Can Generate New Revenue Streams

Posted by Emma Ban on 2014-11-06 14:30:00

The mobile phone insurance revenue market is projected to grow at a compound annual growth rate of 17 % by 2020. As a business executive working for a mobile insurance carrier, you’re surely after a significant portion of it. But how do you go about gaining more revenue?

As we showed in our previous article on how to differentiate a mobile insurance plan from your competitors', it is important that you adopt a proactive approach and diversify your offer, to address emerging mobile risks. As mobile malware is on the rise, adding mobile antimalware protection to the insurance mix will not only help with the diversification, but will provide real value to the increasing number of mobile users facing risks posed by mobile malware.

In this article, we’ll look at 4 ways you can leverage mobile antimalware protection to address emerging customer needs and stay relevant to them, while generating new revenue streams.

1. Upselling is one way and it relies heavily on the customer state of mind when they’re making their buying decision. They’re already in the buying mode, so they’re more likely to consider increasing their purchase, by buying a related item. However, the value of the additional service must be clear and speak directly to the customer’s needs.
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For example, if the customer uses a smartphone for activities other than just talking on the phone – emailing, mobile shopping, internet browsing and socializing online, they may become victims to mobile malware distributed through email attachments, links leading to malware-laden websites, infected mobile advertisements or malicious apps. And mobile malware can affect you in various ways – it can access personal information and send it to cybercriminals, it can dial premium-rate numbers from your device and incur expensive charges on your phone bill; it can even cause damage beyond repair to your device, by altering key functionalities. So if customers want to purchase mobile insurance to have a safety net to fall on in case their device suffers a potential damage, adding mobile antimalware protection to their purchase will provide them with a comprehensive solution that meets their needs, and you with an additional revenue stream.

Adding #mobileprotection to the #mobileinsurance mix helps bring in new revenue streams” via @BitdefenderOEM [Tweet this!]

2. Cross-selling is another tactic that can help you increase sales. Existing customers have opted for mobile insurance for a reason. Since they’ve bought from you once, it’s likely that they’d buy from you again if you offer them additional value.

Just consider the damages caused by mobile malware outlined above. If your customers were aware of all the threats they face while going online, they’d surely want to know what solutions exist against them. So a key part in the cross-selling process is to first make sure your customers are aware of all the risks they face when using their smartphones. This will help reinforce the trust they already have in you. Then, providing them with the solution to cover those risks is the obvious next step. Help them to help you… gain more revenue.

3. Referral programs can help you gain what so many marketers strive for: word of mouth. But such programs only work if there’s a reward for the referrer.

Just put yourself in your customer’s shoes. Surely, if someone asked you to share a piece of information about them, you’d ask yourself ‘what’s in it for me?’ With this in mind, a simple scheme for a mobile insurance referral program might be to encourage existing customer to refer a friend or more to your insurance plan, and, in exchange, to give them a free mobile antivirus program. You can always customize the requirements, but the result will be the same: new potential subscribers gained through word of mouth, and new potential revenue streams.

4. Bundling is yet another way to diversify your offer and generate more revenue. As part of the bundling deal for example, you can offer your current insurance services together with mobile antimalware protection at a price attractively lower than the total of their individual prices, which will lead to higher sale volumes.

The mobile antimalware solution can be provided through a downloadable mobile app. If you don’t want to partner up with a mobile antimalware provider to offer bundled services and associate your brand with another one, you can always opt for rebranding an existing solution. This way you can create your own mobile antimalware brand, and offer your customers your own robust insurance package.

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Emma Ban

Emma Ban is a Content Writer at Bitdefender. Having worked in the industry for more than three years, in both B2C and B2B areas, she has a deep understanding of the online threats that put at risk the security of both consumers and corporations. Thus, her main focus is to provide insights into security technology trends that enable safe environments for companies and their employees. She thoroughly enjoys traveling and has a special interest in fashion technology.

Topics: OEM Business, Mobile Security