differentiating in an undifferentiated industry
DESCRIPTION
When your business or product lines are being outspent, misunderstood, and commoditized what can you do? What do you do to be the challenger brand that takes on the Goliaths? This presentation about a challenger insurance brand may give you a few ideas that you can apply. (Disclosure: I am the CMO at PEMCO Insurance)TRANSCRIPT
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Rod Brooks VP & Chief Marketing Officer, PEMCO Insurance
President: Word of Mouth Marketing Association
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Evening Magazine
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Seeing The Edge Differentiating in an
undifferentiated industry
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Who is PEMCO?
• Leads with relationship
• Integrity
• Responsibility
• Courage
World-Class
Customer Experience PEMCO BUSINESS MODEL
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Our vision
PEMCO is the Northwest insurance company
that “gets it.” An organization that’s great to do business with,
one that shares the values of those who live here, one that’s
genuinely likeable. It’s the first choice of responsible people.
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PEMCO’s “WHY”
We enable and
protect the dreams
of responsible
Northwest people
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
Why? Why? Why? Why?
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Our BHAG: Big Hairy Audacious Goal
PEMCO customers
can’t stand the thought
of friends & family
doing business with
anyone else.
“Never have to advertise
for a lead again”
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PEMCO’s winning approach
Differentiate on hyper local
Deliver world class customer experience
Achieve meaningful interaction
Different because we live, work, learn
and play in the same communities.
Grow and evolve tools to reach and
connect with broad consumer base
Invest in long-term relationships with
consumers through consistent
engagement
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Our situation in 2007
$55 Million 2005-2006
PEMCO
3% Nationally,
GEICO Insurance spent
approximately. . .
$1 Billion 2009
Share of
advertising
voice was less
than 3% in the
prior 2 years
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Our situation in 2007
Insert a slide depicting the erosion of brand awareness (similar to slide #4)
Brand Awareness
100
80
60
40
20
00
Geico State
Farm AllState Farmers PEMCO
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Our situation in 2007
Market Share
20
15
10
05
00 6.7 7.1 7.2 7.1 7.4 7.9 8.3 6.4
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Employee moral
Insert a slide here showing internal employee and agency moral going down (Exceed)
(The big green downward arrow animation?)
GOING IN THE WRONG
DIRECTION
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Market oportunity
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Insurance is …
The law
Not valued
Not trusted
Not well understood
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Can only
“win” by
“losing”
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ALWAYS SHOPPING
See very little product
differentiation
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ALWAYS SHOPPING
PO 2
PISSED OFF or PRICED OUT
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Challenges: old and new
• Highly regulated industry
• Product perceived as a commodity
• Insurance is an unsought product
Industry 1
Environment
2
• Consumers heavily influenced by peers, friends, strangers online
• New & unfamiliar channels are sustaining brand conversations
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Be likeable When all you have is rocks,
you need a better plan.
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Be likeable
• Challenge Status Quo
• Highly Nimble
• Innovative & Creative
• Well Defined Strategies
• Leverages Partnerships
• Capitalizes on WOM of
loyal customers
• Builds Fierce Advocates
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Extensive research initiative
• 100 In-home Ethnographic Interviews
• Important aspects of consideration
• Key influences of decisions they make
Consumer Research
• Cross Functional & Multi-level Conversations
• Culture, Values, and Challenges
• Strengths and Opportunities
Internal Reviews
• Studied Top Twelve Companies – S.W.O.T.
• Product, Price and Brand Positioning
• Advertising, Messaging, Distribution and P.R.
Competitive Assessment
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Some of the people we talked to!
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Leaders in innovation – Proud!
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Incredibly GREEN
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LOVE THE LOCAL GUY
Hometown Heros
Local Trumps Large
Personal Trumps Price
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Unique, Quirky and COLORFUL
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Jerry McGuire Syndrome
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Four billion dollars is like brand magic!
• Car insurance is anything but
conservative when it comes to
marketing these days!
• Doling out dollars once reserved for
categories like beer and travel.
• 2009 Spending - $4.15 B – more
than twice industry spending in 2000.
• Industry growth – all lines – up 2.7%
in same time period.
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Four billion dollars is like brand magic!
Warren Buffet
- GEICO
“Everything is working. The one thing I don’t want to have
stand in your way is money. That’s what I’ve got.”
“...we’re not slowing down
until we get the job done. And our job is to capture the hearts and minds
[of potential customers].”
Pam El, Marketing V.P.
- State Farm Insurance
“We wanted to kick Flo’s ass!”
Nobody wants to sit around and talk about car insurance… We needed to entertain…
Get people’s attention.”
Nina Abnee – Leo Burnett
- Agency for Allstate
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Four billion dollars is like brand magic!
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Four billion dollars is like brand magic!
Top 5 Carriers Spent $2.39 Billion Dollars
In 2009
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And the trend continues
Advertising
spending
topped
$5 BILLION in 2010
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PEMCO’s success depends on the positive opinion of people like me.
They listen, participate, encourage and enable me to share with others.
Listen
Participate
Encourage
Enable +
Partnership
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“I know you”
Initial: “I Know You” – Low Engagement
1) Familiar 2) Assessing & Evaluating 3) Consideration
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“I like you”
Transaction: “I Like You” – Moderate Engagement
1) Functional 2) Transactional 3) Expectations met
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“I love you”
Mature: “I Love You” – Active Engagement
1) Loyal 2) Relationship based 3) Recommendation behavior
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“I defend you”
Mature: “I Defend You” – Active Engagement
1) Affinity 2) Proactive defender 3) Collaborative
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Awareness To Advocacy
Closing the loop on
end-to-end engagement:
Listen: What is being said about
your brand and brands of your agents
Participate: Join the conversation
with great content, relevant resources
for customers AND agencies.
Encourage: Foster connections
between customers, agencies, carrier.
Enable: Provide customers and
agents a place to tell their stories.
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Tools in the toolbox
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Tools in the toolbox
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Keeping it real – focus on people
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Act Local - To Be Local! Where they live, work, learn and play.
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Act Local - To Be Local! Where they live, work, learn and play.
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PEMCO brand ambassadors
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In 2011, PEMCO will sponsor
and participate in more than
100 Northwest events!
WALLY on the road
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Serving community & neighbors
Celebrate Northwest
Empower employees
Support health & education
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Local retailers
Celebrate a shared audience
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Local services
Leverage shared interests
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Local franchises & fans
Know your talkers!
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Facilitate engagement
Give them something to share
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Community agent partners
Amplify hyper-local community initiatives
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Connect with community
Service-oriented activities create conversation
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Spark conversation
Integrate “talkable” campaign elements into events
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YOUR EDGE
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