social - a pemco story in under 20 minutes
DESCRIPTION
A twenty minute hole appeared in the 2011 Social 301 Conference agenda and I got the call. This short story includes a video case and an example of how PEMCO has entered into social engagement with an integrated, online and offline approach.TRANSCRIPT
Rod Brooks Vice President & Chief Marketing Officer,
PEMCO Mutual Insurance Company
In under 20 minutes…
Nice to meet you.
Just in case – The video
The challenge.
Jerry McGuire syndrome.
Blending Online & Offline
1
2
3
4
5
Know what's important
• Leads with relationship
• Integrity
• Responsibility
• Courage
World-Class
Customer Experience PEMCO BUSINESS MODEL
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”
Insurance is …
The law
Not valued
Not trusted
Not well understood
Can only
“win” by
“losing”
Jerry McGuire syndrome can be contagious!
Show me the money
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.
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
Four billion dollars is like brand magic!
Four billion dollars is like brand magic!
Four billion dollars is like brand magic!
Four billion dollars is like brand magic!
Top 5 Carriers Spent $2.39 Billion Dollars
In 2009
Tools in the toolbox
26
Tools in the toolbox
27
Engage in meaningful, relevant ways
29
Local fans and fan favorites!
Know your talkers!
Media partnerships
Get more than you pay for
Share your spotlight moments
Make it fun and relevant
Give them something to talk about!
Facilitate engagement
Make it easy to share!
Put a camera in their hands
Make it fun and relevant
Make it easy to share!
Make it easily shareable
WOM conversations about insurance
Over the past two years, likelihood to talk about auto insurance has increased from 16% to 24%.
Likelihood to have a conversation about PEMCO’s ads has doubled (from 8% to 17%).
Tri-County Preferred Drivers
January
2008
April
2008
Nov
2008
March
2009
September
2009
March
2010
Had a conversation about auto
insurance in the past month. 16% 23% 24% 20% 24% 24%
In-person conversation 95% 85% 86% 95% 90% 93%
Online conversation 12% 19% 14% 12% 17% 9%
Talked about PEMCO 17% 19% 24% 22% 22% 23%
Talked about GEICO 39% 51% 13% 56% 31% 35%
Had a conversation about
PEMCO’s ads in the past month 8% 15% 17% 21% 22% 17%
Not asked in June 2008
Percentages of those having conversations about auto insurance are based on the total sample
Percentages of those having conversations about PEMCO’s ads are based on those who remember PEMCO ads.
42
Why did they buy? (statewide preferred market)
For the first time, in 2010, referrals and recommendations are just as important
as price in understanding why people make their buying decision.
Reason 2001 2002 2005 2007 2008 2009 2010
Price 60% 62% 50% 50% 36% 40% 33%
Referral and/or
Recommendation
10% 12% 17% 20% 22% 22% 32%
Liked the agent 15% 11% 9% 9% 9% 9% 13%
Good service 33% 23% 5% 4% 9% 4% 10%
Local company <1% <1% <1% <1% 9% 6% 7%
Market
When you first chose to purchase auto insurance with (carrier)
why did you select this company for your insurance?
43
Why did they buy? (statewide preferred market)
For the first time, in 2010, referrals and recommendations are just as important
as price in understanding why people make their buying decision.
Reason 2001 2002 2005 2007 2008 2009 2010
Price 60% 62% 50% 50% 36% 40% 33%
Referral and/or
Recommendation
10% 12% 17% 20% 22% 22% 32%
Liked the agent 15% 11% 9% 9% 9% 9% 13%
Good service 33% 23% 5% 4% 9% 4% 10%
Local company <1% <1% <1% <1% 9% 6% 7%
Market
When you first chose to purchase auto insurance with (carrier)
why did you select this company for your insurance?
44
Metrics: Conversations
Activities drive insurance conversations
0%
5%
10%
15%
20%
25%
30%
35%
40%
Mar 09' Sept 09' Mar 10' Feb 11'
Insurance
PEMCO
Had a conversation about auto insurance in the past month
Metrics: Conversations
Activities drive insurance conversations…offline!
0%
20%
40%
60%
80%
100%
Online
In-person
• Of insurance conversations occur in person as opposed to online 91%
Let’s Connect Twitter: @NW_Mktg_Guy
Facebook: Rod Brooks
Blog: www.rodbrooks.com
Thank you!