Four In Five Consumers Open To Persuasion When Purchasing Health Insurance

Four In Five Consumers Open To Persuasion When Purchasing Health Insurance
SHARE
THIS



Only 18 per cent of people have a specific health fund in mind when recognising that they need health insurance, meaning that four in five are open to persuasion, a new report released by NewsMediaWorks has revealed.

More than a third (38 per cent) of health insurance buyers said their purchase decision, whether they were new to the category or were switching providers, was directly influenced by news media.

To understand how to engage health insurance buyers on their path to purchase, NewsMediaWorks collaborated with Research Now to develop one of Australia’s largest path to purchase projects*.

Unlike similar studies, which retrospectively look at consumer behaviour, this study gathered information from buyers in real time at four distinct stages of their purchase journey: 1. recognising that they need to purchase health insurance; 2. researching options; 3. forming a shortlist and 4. buying health insurance.

Some 66 per cent of buyers recalled seeing or hearing a specific health insurance ad across any media in the early stages of buying. The most common messages retained involved special offers and where to go for more details.

During the research phase, price is the most important factor at 53 per cent, followed by coverage (51 per cent), recommendations (34 per cent), how to buy (33 per cent) and reviews (26 per cent). In the research phase, news media was the most influential paid advertising platform, while organic search ranked well. In the shortlist phase, the percentage of consumers who have a favourite health insurer in mind rises from 18 per cent to 50 per cent and one in two buyers now seek out reviews of health insurance products.

The study reveals that buyers engage with a range of paid, owned and earned media channels during their path to purchase. News media consistently out-performed other paid media on this journey, while three other channels also ranked extremely well – organic search results (not paid ads), comparison websites and health fund websites.

At the purchase phase, 80 per cent of buyers selected a health fund based on price. Reputation ranked second at 60 per cent, followed by reviews (49 per cent) and recommendations from others (46 per cent).

Consumers turn to news media as a ‘one-stop shop’ for the five key pieces of information they require when buying health insurance (price, coverage, recommendations, how to buy and reviews). Their information needs remain throughout the path to purchase, but their weighting changes at each stage. When they are about to make their purchase, for example, buyers look for detail on coverage inclusions and how to buy.

“Throughout the path to purchase for health insurance – which on average spans 13 weeks – news media consistently outperforms other paid media. When people are in the market for health insurance, news media delivers credible, trustworthy content,” NewsMediaWorks CEO Mark Hollands said.

“Some 16.8 million^ people read news media in print and on digital devices every month, making news media a powerful advertising medium for health insurers. Health insurance buyers turn to news media for authoritative content to educate and inform them but also with the level of detail required to select a fund that’s right for them.”

The Health Insurance report is the fourth Path to Purchase study NewsMediaWorks has released with previous reports including Automotive, Travel and Electrical Goods. Full reports can be found here: http://www.newsmediaworks.com.au/search/major-reports/pathtopurchase/

*The study surveyed 606 consumers in the market for health insurance captured at different stages of their purchase journey in July 2016.

^ Source: emmaTM, 12 months to August 2016. Readership based on last four weeks. Trends compared with 12 months to August 2015. Survey conducted by Ipsos MediaCT, people 14+, Nielsen Digital Ratings (Monthly), August 2016.

Please login with linkedin to comment

NewsMediaWorks Support

Latest News

AnalogFolk Hires Senior Creative Content Specialist Naomi Martin
  • Advertising

AnalogFolk Hires Senior Creative Content Specialist Naomi Martin

Global independent creative agency AnalogFolk has added more creative content firepower to its Sydney team with the appointment of award-winning Naomi Martin as senior copywriter and social lead. Martin’s focus will be further building the agency’s creative and strategic capabilities across editorial, branded content, influencers, creation and production. Formerly head of content at IPG Mediabrand’s […]

Apple Set To Bundle Subscription Services
  • Technology

Apple Set To Bundle Subscription Services

Apple unveils latest initiative that is rumoured to have come to Tim Cook while he was scooping the leaves in his pool.

by B&T Magazine

B&T Magazine
SkyBus Welcomes Back NZ Travellers With New Campaign Via Hardhat
  • Campaigns

SkyBus Welcomes Back NZ Travellers With New Campaign Via Hardhat

SkyBus’ latest ‘The Easy Way to Getaway’ campaign via newly awarded creative agency Hardhat aims to give a warm welcome to returning New Zealand travellers, letting them know the airport transfer service is ready and waiting. The win has seen Hardhat lead the charge on SkyBus’ strategy and creative across New Zealand, ensuring confidence in […]

by B&T Magazine

B&T Magazine
Woolworths W23 Longtail UX. From left Will Santow, Longtail UX Co-Founder and Co-CEO; Ingrid Maes, Managing Director W23 and Andreas Dzumla, Longtail UX Co-Founder and Co-CEO. Pictured at Dan Murphys in Mosman. 13th August 2020. Photograph Dallas Kilponen.
  • Technology

Longtail UX Secures $2.25M In Funding From Woolworths Group’s Venture Capital Arm W23

Longtail UX, an Australian founded tech company with 70+ clients across the Americas, EMEA and JAPAC, has today announced a $2.25m supplementary equity raise in partnership with Woolworths Group’s venture capital arm, W23 and Steven Lew-owned group, Global Retail Brands (GRB). The investment builds on the $3m funding round led by Investec through its Investec […]

Enero Posts Net Revenue Increase Of 4.9%
  • Media

Enero Posts Net Revenue Increase Of 4.9%

Forget 2020's plagues, pestilence and famine says Enero, as balance sheet comes out with sweet smell of potpourri.

by B&T Magazine

B&T Magazine