In a world that is getting increasingly inclined towards digital marketing, PolicyBazaar’s chief executive officer Sarabvir Singh comes with a slightly different opinion. As he speaks to ETBFSI.com about the changing FinTech landscape, Singh highlights the challenges to building a profitable business using digital marketing.
“It is impossible for anybody to build a profitable business by acquiring customers through Google and facebook,” he mentions. Singh opines that customer acquisition through mediums like Google and Facebook can only be a ‘topping on top of the main business’.
He supports this statement by sharing PolicyBazaar’s model, when it comes to advertising and acquiring new customers. Shedding light on managing customer acquisition cost (CAC), Singh says, “The reason we are able to manage the CAC is because 80 per cent of our transactions happen through people who come directly on our website.”
Over the last 10-12 years, Singh shares, PolicyBazaar has advertised largely on television, creating demand for insurance. “If you see our advertisements, we don’t really say too much about PolicyBazaar, we tell you why you should buy health, term or motor insurance,” he adds.
Here, the aim for the company remains to create demand, which later transcends into online channels. “Customers may then find us through search engine optimisation (SEO), or also because of PolicyBazaar’s brand name,” Singh mentions.
According to him, the advertising that has happened on television...
Read Full Story: https://brandequity.economictimes.indiatimes.com/news/business-of-brands/customer-acquisition-through-google-facebook-is-not-enough-to-build-a-profitable-business-policybazaar-ceo/90414471
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