proprietary and company confidentialnovember 5, 2009a.m. bests imas the marketing of esurance am...
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Proprietary and Company Confidential November 5, 2009A.M. Best’s IMAS
THE MARKETING OF ESURANCETHE MARKETING OF ESURANCEAM BEST COMPANY’S 2009 INSURANCE MARKETING & ADVERTISING SUMMIT
November 5, 2009Proprietary and Company Confidential A.M. Best’s IMAS2
Agency Operations
Los Angeles
50
350
298,000
$350 Million
Affinity/Partnership
Auto, Property, Motorcycle
ESURANCE FAST FACTSESURANCE FAST FACTS
Headquarters:
States Covered:
Associates:
Policies-in-Force:
Written Premium (2008):
Distribution Model:
Products:
Insurance Operations
San Francisco
30
1,650
467,000
$823 Million
Direct to consumer
Auto Insurance
Note: Agency Operations include Answer Financial, Inc and the Esurance Property and Motorcycle Insurance programs
November 5, 2009Proprietary and Company Confidential A.M. Best’s IMAS3
ESURANCE SHOPPING SHAREESURANCE SHOPPING SHARE
34% 31% 25% 23% 12% 11% 10% 9% 9% 6% 5%
$92M $56M
$265M $221M
$163M
$251M
$80M
$472M
$572M
$336M
$807M
Share of Shoppers Total Spend
How did Esurance become the 5th most shopped auto insurance brand in 10 years?
Source: JD Power 2009 Auto Insurance Shopping Study; Dowling Securities
November 5, 2009Proprietary and Company Confidential A.M. Best’s IMAS4
PRE-ERIN YEARS: 2000 - 2003PRE-ERIN YEARS: 2000 - 2003
• Pure direct marketing with little brand awareness• Paid Search
• Portals
• Affiliates/Lead Gen
November 5, 2009Proprietary and Company Confidential A.M. Best’s IMAS5
• Creative concept that would have impact• Must appeal to consumers inclined toward Esurance already – Young,
Urban, Single Males (classic internet early-adopters)• Must stand-out from the pack• Must be efficient to produce• Must drive immediate response
• Erin Esurance• Animation addressed many of those requirements
• Lower cost• Stands out• Appeals to target
• Erin was developed to personify our brand to this target• High entertainment value• Visually impactful (pink hair)
TAKING AN “ONLINE BRAND” OFFLINETAKING AN “ONLINE BRAND” OFFLINE
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ERIN IS BORNERIN IS BORN
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ERIN GOES NATIONAL ERIN GOES NATIONAL
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WHY DID THIS CAMPAIGN WORK SO WELL?WHY DID THIS CAMPAIGN WORK SO WELL?
November 5, 2009Proprietary and Company Confidential A.M. Best’s IMAS9
THE RISE OF THE COMPETITIONTHE RISE OF THE COMPETITION
$1.25$1.44
$1.84
$2.43
$2.85
$3.51$3.85
2002 2003 2004 2005 2006 2007 2008
Total Spend by Top 15 Insurance Advertisers($ billions)
Source: Dowling Securities
November 5, 2009Proprietary and Company Confidential A.M. Best’s IMAS10
THE FALL OF THE SHOPPING MARKETTHE FALL OF THE SHOPPING MARKET
2007
14%
22%64%
Non-Shoppers
Shopped & Retained
Shopped & Switched
2008
10%
18%
72%
Non-Shoppers
Shopped & Retained
Shopped & Switched
US Auto Insurance Shopping Market
Source: JD Power 2009 Auto Insurance Shopping Study
November 5, 2009Proprietary and Company Confidential A.M. Best’s IMAS11
THE NEXT STAGE – THE WAR OF THE “BRANDS”THE NEXT STAGE – THE WAR OF THE “BRANDS”
20061 Auto Makers
2 Auto Dealers
3 Wireless
4 Movies
5 Prescription Drugs
6 Fast Food
7 Consumer Banking
8 Credit Cards
9 Invest. Prod/Services
10 Furniture Stores
11 Hotels/Resorts
12 Clothing Stores
13 Home Improvement Stores
14 Auto Insurance
20071 Auto Makers
2 Auto Dealers
3 Wireless
4 Prescription Drugs
5 Movies
6 Fast Food
7 Invest. Prod/Services
8 Consumer Banking
9 Credit Cards
10 Hotels/Resorts
11 Furniture Stores
12 Auto Insurance
20081 Auto Makers
2 Wireless
3 Auto Dealers
4 Prescription Drugs
5 Movies
6 Fast Food
7 Invest. Prod/Services
8 Consumer Banking
9 Auto Insurance
20091 Auto Makers
2 Wireless
3 Movies
4 Fast Food
5 Prescription Drugs
6 Auto Dealers
7 Investment Products
8 Auto Insurance
Top Advertising Categories – United States
Source: TNS Media Intelligence
November 5, 2009Proprietary and Company Confidential A.M. Best’s IMAS12
THE INTERNET IS THE MAJOR BATTLEGROUNDTHE INTERNET IS THE MAJOR BATTLEGROUND
Portion of shoppers who used the Internet to obtain a quote
68%
Portion of consumers who will turn to the Internet first the next
time they shop
37%
28%24%
2006 2007 2008
Source: JD Power 2009 Auto Insurance Shopping Study; Esurance proprietary research
November 5, 2009Proprietary and Company Confidential A.M. Best’s IMAS13
THE YOUTUBE EFFECTTHE YOUTUBE EFFECT
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FACEBOOK – ENGAGED CONSUMERSFACEBOOK – ENGAGED CONSUMERS
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TWITTER – ENGAGED CONSUMERSTWITTER – ENGAGED CONSUMERS
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TWITTER – THE POSITIVETWITTER – THE POSITIVE
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TWITTER – THE NEGATIVETWITTER – THE NEGATIVE
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TWITTER – THE NEGATIVE BECOMES POSITIVETWITTER – THE NEGATIVE BECOMES POSITIVE
• Received an email detailing issue• Forwarded customer’s email to Customer Service• We resolved issue and stayed in contact customer• Received a “Thank you” in response
November 5, 2009Proprietary and Company Confidential A.M. Best’s IMAS19
TWITTER – THE POSITIVETWITTER – THE POSITIVE
Proprietary and Company Confidential November 5, 2009A.M. Best’s IMAS
John Swigart, Chief Marketing OfficerJohn Swigart, Chief Marketing [email protected]@esurance.com
THANK YOUTHANK YOU