Editor’s note: This article was first published in August 2010, and describes Mapfre’s 2010 sales campaign in Spain and its position as market leader at that time, during the financial crisis.
There are different techniques, strategies and formulas for rescuing a business when things are going badly, although the rules change depending on the type of business. Today we look at the strategy followed by the insurance company Mapfre. It’s an example of how to act when the competition is closing in on you.
When the crisis hit, there were several sectors that “technically” shouldn’t have been hurt, since they’re needed whether people have money or not, and one of them was the insurance sector.
If you want to drive, you need car insurance. If you don’t want to pay large sums for breakdowns or disasters at home, you need home insurance. Because insurance promised profitability in a time of recession, new insurers arrived in expansion mode, and even banks started selling all kinds of insurance, with the advantage (or the “blackmail”) of granting you something in return for taking out your insurance with them.
Mapfre was the leading insurance company in Spain and saw its leadership threatened by the competition bearing down on it, which in some cases was competing on very low prices.
What Mapfre did
Mapfre has launched a big, aggressive campaign to win customers. It has taken its sales staff out of the offices and onto the streets, and it has put its in-house department to work calling back former customers who had cancelled at some point.
It’s hard to turn down the offer when they tell you something like, “We’ll beat the price you’re paying right now.”
And I know price isn’t everything, but they also offer every service an insurance company can have, so if on top of that it’s cheaper, as the saying goes, it’s twice as good.
I’m not trying to give an insurance company free advertising, but it’s an example of how, even when you’re the leader in a service, you can’t let your guard down, and when the unexpected happens, the best defense against your competition is a good offense.
An old man used to say, “Why lose 5 trying to win 10 when you can settle for 3?” I hope Mapfre’s example gives you one more perspective on how to compete with your competitors.
Further reading
- 5 ways to grow your business
- How to run a business in times of crisis
- A drug cartel’s guidelines applied to business
- The entrepreneur’s mindset: Donald Trump
Featured image: Zarateman, CC0 1.0, via Wikimedia Commons.
