Optimizing Takaful Product Selection: Strategic Marketing Approaches to Accelerate Technology Adoption

Objective: This study aims to propose effective marketing strategies that enhance technology adoption in Takaful product selection, addressing the need for digital transformation in the Takaful industry to maintain competitive advantage and improve customer engagement. Framework/Variables: The research is grounded in the Unified Theory of Acceptance and Use of Technology (UTAUT) model, which examines four key constructs: perceived usefulness, social influence, performance expectancy, and facilitating conditions. These variables are pivotal in understanding customers' readiness to adopt technology in selecting Takaful products. Methodology: A quantitative research approach was employed, utilizing structured surveys to collect data from Takaful customers in Malaysia. The data were analyzed using the Partial Least Squares Structural Equation Modelling (PLS-SEM) tool to evaluate the relationships between the UTAUT constructs and technology adoption. Result and Discussion: The findings reveal that social influence and facilitating conditions significantly impact customers' willingness to adopt technology in selecting Takaful products. Conversely, perceived usefulness and performance expectancy exhibited minimal influence on adoption rates. This suggests that external social pressure and the availability of supportive infrastructure play more substantial roles in shaping customer behavior than the perceived technological benefits. Implication and Originality: The study provides practical insights for Takaful operators by proposing ten targeted marketing strategies to drive technology adoption. These include developing user-friendly digital platforms, offering comprehensive customer support, incentivizing agents, fostering consumer trust, and aligning services with technological trends. The study contributes to the growing literature on digital transformation in Islamic finance, offering a strategic blueprint to optimize Takaful operators' digital marketing efforts in the evolving financial landscape.