Sunday, November 15, 2009

Why The Post Office Travel Insurance Is So Popular

The Post Office demonstrated fantastic ability to spout money recently in a bid to build their brand awareness due to the expansion of products to include travel insurance.

In 2007 the advertising spend reached 10 million and customers will recall TV and radio broadcasts depicting the celebrity interactions in a typical Post Office (PO).

The adverts drew criticism for being too simplistic and condescending in the attempt to reach a mass audience. Further efforts targeted the over-50 market with a radio campaign the following year.

Yet, it is exactly this huge reach which places the competition at a disadvantage especially online start ups with a miniscule budget. In this situation it is difficult to compete with the PO's strong brand, leaving price the only variable.

And for this reason the PO are not the cheapest in the market, meaning other companies must attract holidaymakers by offering the best deal, while the PO draws in customer flows who sometimes circumvent research and simply trust in the strength of the brand.

One major advantage which the Post Office holds over competing travel insurance companies, is the cross-selling of product lines to existing customers acclimatised to the time-proven staples of stamps and finance.

The next unique feature is the accessibility because a staggering 94 per cent of UK residents are within a mile of a Post Office branch.

Related Articles

  1. Post Office Travel Insurance Review - An in-depth examination of the product's pros and cons.

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