When you talk about free automobile insurance quotes, you tend to calculate the advantages and disadvantages on the perspective of a client. However, no one really thinks about what it does on the part of an insurer.
Giving free automobile insurance quotes has been praised and criticized by clients and other companies. Hence, to finally settle things, here are the good and the bad of providing this service.
First up, we have the upsides of offering free automobile insurance quotes.
As an insurer, you can expect more clients. If you advertise giving something for no expense at all, expect a lot of people to line up on your doorstep. This is why you always see a long queue of people at the free takeout counter. The basic rule is that if you give people what they want – especially if they do not have to pay for it – you will get a lot more customers; maybe even more than you can handle.
You can also establish better business reputation – that is, if you can legitimately and fairly do your service. In relation to the above, the more people come to you, the more chances of people giving you feedback. Clients tell their friends, and friends tell other friends. Before you know it, your company will have become talk of the town.
Probably the best advantage in a business setting is the fact that you establish a better relationship with your clients. If people like you, they will stick with you. This means people will keep buying policies from you because they feel comfortable dealing with a likable insurer such as yourself.
Next, here are the downsides in giving away free automobile insurance quotes.
There is a big chance of earning lesser income. If someone gives something away for no cost at all, no income is expected. This is a strategy undertaken only by those who have guts of steel because they risk going out of business. After all, earning income is the first reason why people engage in financial ventures.
Competitors may overtake you with newer and more effective business strategies. Let’s face it – freebies are nothing new. Almost anyone can offer something without exchange. If you stick to this one strategy for the entire duration of your business life, chances are the company will be left in the dust by innovative competitors.
Offering freebies is like “giving back” to the community. It is a way of taking care of your clientele despite obvious disadvantages. However, what matters above all is that the relationship stays, which will always mean better business.