Selling an intangible item such as a service contract or life insurance requires a different sort of advertising campaign. If you focus on the product, then you are going to remind the customer that they are paying for something that they cannot get their hands on. But if you follow the advertising guidelines for effective intangible advertising, then you can create a demand for your offering.
Benefits
One of the guidelines to follow when advertising an intangible product is to focus on the benefits of the offering. Help the customer to see what she will gain by investing in your product. For example, when advertising life insurance, point out the help it will offer loved ones when the policy holder has passed on. Point out the costs involved in a funeral, and that the next of kin are responsible for any debts left behind. Show how the product addresses those issues, and you have created a need with your audience.
Return
Customers purchasing an intangible product can often be won over by showing the customer the financial return in purchasing your product. For example, if you sell repair services for stereo equipment, then you can run advertising that compares the cost of replacing that equipment versus the cost savings of repairing it using your service. If you can get the customer to understand the immediate financial benefits of buying your intangible product or service, then the customer can justify the expense.
Tangible Associations
If a client understands the value of an intangible product, then offering a tangible return on buying the intangible product can make the advertising more effective, according to Dee Davey, writing on the SalesVantage website. It is the same concept that motivates banks to offer free toasters to people who open new savings account. It does not matter if the tangible offering has anything to do with the intangible product. A toaster has nothing to do with a bank savings account. But the customer benefits by receiving something tangible for his intangible purchase, and the bank benefits from the ongoing intangible business that client will offer.
Sell the Company
To many customers, the difference between intangible products is the company offering the product. Life insurance appears to be the same to consumers, but those same consumers would be more apt to purchase life insurance from a company that they were familiar with and trusted rather than a new company they had not heard of. In your intangible advertising, mention the history of the company, its standing as an industry leader and the company's financial success. These elements help the consumer to gain confidence in the company and create a desire to purchase the company's intangible products.
Tags: intangible product, life insurance, that they, intangible advertising, intangible products