I’ve heard plenty of reasons why going after consumers is both an ill-fated waste of time and resources and why it’s the wave of the future. Here is the stat that I find the most important to think about though:
90 percent of people believe they are smarter than average.
I’m not the best at math, but I can tell you that is statistically impossible. It’s an important stat because it shows how people think of themselves — highly. The power of the Internet and the widespread availability of information through the use of smart phones and iPads — and whatever the next thing is going to be only — reinforces this characteristic
What this means is when Bob New Customer doesn’t feel well today, he heads to the Internet to self-diagnose himself and then researches the ways to cure himself. When Bob’s sink is backed up, he Googles information on plumbing. When Bob wants to cook ribs for the first time, he heads to YouTube to watch the best way to prep them. And if Bob doesn’t feel bold enough to do these things himself, he will Google the closest professionals who can help. The reason he picks one might be about price, or customer reviews or location or experience or attractiveness, but he picked them.
Yes, title insurance is an unknown commodity to most people today; it’s a line item that gets pointed to and sometimes glossed over. But will it stay that way forever? Does it have to stay that way forever? Is it even possible to stay that way forever?
Listen to a presentation on the housing market — the refrain the last few years is there is built up demand from a younger generation that has yet to make the leap to homeownership. Those jobless college grads and budding young professionals won’t stay renters forever, and soon they will start buying homes, and refinancing those homes. I haven’t even mentioned the Consumer Financial Protection Bureau’s role in changing the conversation, either. I’m not saying consumer marketing is the wave of the future so push all of your chips to the middle. On the other hand, do you want to gamble on title insurance continuing to be an unnoticed line item for an uneducated consumer?
It should at least give all of you 90 percenters out there something to think about.
Until next time,
Chris Crowell | Editor of The Title Report