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indexannuity.org - An Index Annuity Resource |
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When your answer loses, answer a different question Last fall Verizon started running commercials showing two U.S. maps of cell phone coverage. The Verizon map had the country covered in red balls. The ATT map used blue balls showing many, many bald spots with no coverage. At first ATT tried to meet the lack of coverage issue head on by covering a map with postcards. The problem was Verizon does have greater network coverage and ATT loses on this point. Around Christmas ATT changed their approach by essentially stating ATT has better network coverage because with ATT you can talk on the phone and surf the web at the same time. Huh? ATT’s response has nothing to do with greater network coverage...and that’s the point. ATT couldn’t win by answering the question asked so they answered a different question they could win. The same approach can work with annuity questions. If asked, “Do you offer a 10% premium bonus like your competitor?” when you only offer a 5% bonus, a possible answer might be “Even better, our annuity offers a potential 12% first-year yield” (if there is a 7% cap on the index method offered) Or to the query “Is it true your A.M. Best Rating is B-?” an answer of “Which is why we offer checkbook access to your account value” sounds like you’re answering the question, but instead you’re answering a question you can win at. If you think answering, “How safe is this annuity” might result in an unwinnable discussion on policy reserves and the lack of federal annuity insurance a response of “This annuity contains no asbestos or carcinogens of any kind” addresses the issue of safety in a positive context. And the poser “What is your commission?” might best be responded to with “Annuity finders fees are paid by the carrier and do not require you to write me a check for my services.” The new ATT campaign is concentrating on answering questions where they beat Verizon and sidestepping the losing ones. It is a time tested marketing approach that often works. It's time to take retirees to school and and show them the benefits of being annuity pupils. An Annual Reset Approach To S&P 500 Total Gain (Loss) Periods Ending 12/31/09 How To Read This: All the different periods end on 12/31/09. For the last 5 years, 12/31/04 to 12/31/09, the S&P 500 finished 7.99% lower, but if you used an annual reset approach treating negatives years as zeros the total gain is 49.57%.
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