Branding Playbook: Your Company Or Your Agencies

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Insights from CMO of NW challenger brand, PEMCO Mutual Insurance Company, on topic of branding your company while working closely with partner agency brands.
Includes discussion of brand ladder, brand advocacy, and effective collaboration techniques. Presented at NAMIC Personal Lines Seminar, April 2011 by CMO Rod Brooks

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Branding Playbook: Your Company Or Your Agencies

  1. 1. Rod BrooksVice President & Chief Marketing Officer,PEMCO Mutual Insurance Company
  2. 2. Who is PEMCO?• Personal-lines mutual insurance company founded in 1949• Serves niche market of preferred-risk policyholders• Provides coverage to ~200k Washington households• Historically conservative and legacy oriented• Leads with relationship.
  3. 3. Know whats importantWorld-ClassCustomer ExperiencePEMCO BUSINESS MODEL • Integrity • Responsibility • Courage• Leads with relationship
  4. 4. PEMCO’s “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?We enable and Why? Why? Why? Why? Why? Why? Why? Why?protect the dreams Why? Why? Why? Why? Why? Why? Why? Why?of responsible Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why?Northwest people. Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why?
  5. 5. Our VisionPEMCO is the Northwest insurance companythat “gets it.” An organization that’s great to do business with,one that shares the values of those who live here, one that’sgenuinely likeable. It’s the first choice of responsible people.
  6. 6. The BHAG: Our Big Hairy Audacious Goal “Never have to advertise for a lead again” PEMCO customers can’t stand the thought of friends and family doing business with anyone else.
  7. 7. Branding Playbook:Your Company or Your AgenciesThe importance of leveraging brand assets.
  8. 8. Jerry McGuire syndrome can be contagious! Show me the money
  9. 9. 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.
  10. 10. Four billion dollars is like brand magic! “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 wanted to kick Flo’s ass!” Warren BuffetNobody wants to sit around and talk about - GEICO car insurance… We needed to entertain… Get people’s attention.” Nina Abnee – Leo Burnett Agency for Allstate “...we’re not slowing down Pam El, Marketing V.P.until we get the job done. And our job State Farm Insurance is to capture the hearts and minds [of potential customers].”
  11. 11. Four billion dollars is like brand magic!
  12. 12. Four billion dollars is like brand magic!
  13. 13. Four billion dollars is like brand magic!
  14. 14. Four billion dollars is like brand magic!
  15. 15. Four billion dollars is like brand magic! Top 5 Carriers Spent $2.39 Billion Dollars In 2009
  16. 16. Four billion dollars is like brand magic! Top 5 Carriers Spent $2.39 Billion Dollars In 2009
  17. 17. Four billion dollars is like brand magic! Top 5 Carriers Spent $2.39 Billion Dollars In 2009
  18. 18. Four billion dollars is like brand magic! Top 5 Carriers Spent $2.39 Billion Dollars In 2009
  19. 19. Four billion dollars is like brand magic! Top 5 Carriers Spent $2.39 Billion Dollars In 2009
  20. 20. ChallengersA Challenger is, above all,a state of mind rather thana state of market.Challenger Brands are thebrands that inspire us.Brands that we respectand remember; that weare attracted to.After all…No one roots for Goliath.
  21. 21. Battle Field• Challenge Status Quo• Highly Nimble• Innovative & Creative• Defined Strategies• Leverages Partnerships• Capitalizes on WOM of loyal customers, and• Lacks Economic Scale
  22. 22. Brand challenges and differing views Carrier Agency Agent 1 Has invested Has invested Has spent heavily in the heavily in the lifetimeINVESTMENT carrier brand agency brand developing position and position and personal brand. promise. promise. Expects similar Expects similar Expects similar from the carrier from agency from carrier and agency. partners. partners.
  23. 23. Brand challenges and differing views Carrier Agency Agent 2 Views insured as Views insured as Views insured as “their customer” “their customer” “their customer”CUSTOMER first. first. first. 3 Views agency Views carrier as Views carrier as and agent as product manufacturer ROLE distribution manufacturer and agency as pipeline. and agent as employer. employee.
  24. 24. Brand challenges and differing views Carrier Agency Agent 4 Expects Expects Believes that consistency of consistency of the real brandCONSISTENT brand image brand image relationship that throughout the regardless of matters is the life cycle of the which carrier the one they hold relationship. business is with the written to. customer.
  25. 25. Brand challenges and differing views Carrier Agency Agent 5 Expects that all Expects that all Expects that all agency touch carrier touch brand promises PROMISE points deliver points deliver made by carrier product and product and and agency set service service them up for experience experience success at the consistent with consistent with point of sale. carrier brand agency brand promise. promise.
  26. 26. Brand challenges and differing views Carrier Agency Agent Expects carrier 6 Expects agency Expects carrier to deliver an to deliver an and agency to “unfair share” of “unfair share” of supply leads, UNFAIR easy to use SHARE business in support in systems, and exchange for exchange for “unfair marketing new business, compensation” support and service and for selling on distribution retention that behalf of the rights to product. agency provides. both.
  27. 27. Brand challenges and differing views Carrier Agency Agent 7 Firmly believes Firmly believes Firmly believes that carrier that local agency that they could TRUMP brand trumps the brand trumps the do what they do local agency carrier brand. for any agency brand. and carrier, and that their brand is the one that is the ace of trump.
  28. 28. Early lessons still apply A feature without a benefit is like a car without gas... It’s not going to go very far!Feature: Benefit:• What a product or service includes! • How a product or service helps!• A feature “tells” • A benefit “sells”
  29. 29. Early lessons still apply – and more If you don’t know your why, your what and your how don’t matter.Purpose:• The emotional reward your customer expects to receive from their engagement with the brand.• How a product or service feels!
  30. 30. Early lessons still apply – and more People don’t buy what you do, they buy why you do it.Value Proposition:• Tells your customer why you do what you do that leads to a powerful value proposition and brand positioning statement.
  31. 31. Customer trained to rank order choices • Best price? • Best promise? • Best value?
  32. 32. In Commodity Business – Partners Matter • Best Relationship! • Best Service! When brands are viewed as commodities, the distribution partner may take the higher rung on the ladder.
  33. 33. Brand ladder and consumer relevance The third place... Think differently… Between work and home. Challenge the status quo.
  34. 34. Brand ladder and consumer relevance The third place... Think differently… Between work and home. Challenge the status quo. Superior beans Innovation /cool design Genuine service Over 300,000 apps Inviting atmosphere Outstanding experience
  35. 35. Brand ladder and consumer relevance The third place... Think differently… Between work and home. Challenge the status quo. More than great coffee Convenient – Easy to use Coffeehouse experience Enables a simplified life A relaxing place for me Helps me stay connected Superior beans Innovation /cool design Genuine service Over 300,000 apps Inviting atmosphere Outstanding experience
  36. 36. Brand ladder and consumer relevance The third place... Think differently… Between work and home. Challenge the status quo. Feeling of connection Belong to an elite group Place for conversation It’s cool, so I’m cool A sense of community Empowering technology More than great coffee Convenient – Easy to use Coffeehouse experience Enables a simplified life A relaxing place for me Helps me stay connected Superior beans Innovation /cool design Genuine service Over 300,000 apps Inviting atmosphere Outstanding experience
  37. 37. The Golden Circle – Are yours aligned? Bad Marketing: • Attempts to sell – What we do Good Marketing: • Attempts to tell – Why we do it - Simon Sinek Why? How? What?Purpose – Cause – Belief Guiding Principles Tangible Proof - ResultsThe Why is your driving The Hows are the specific The Whats are the tangiblemotivation for action. actions that are taken to ways in which you bring your realize your Why. Why to life.
  38. 38. Intersection of strategy and marketing...
  39. 39. …or road to nowhere!
  40. 40. Awareness to Advocacy Transaction StageClose the loop on end to end engagement1) Content 2) Connections 3) Collaboration
  41. 41. “I know you” Transaction StageInitial: “I Know You” – Low Engagement1) Familiar 2) Assessing & Evaluating 3) Consideration
  42. 42. “I like you” Transaction StageTransaction: “I Like You” – Low Engagement1) Functional 2) Transactional 3) Expectations met
  43. 43. “I love you” Transaction StageReferral: “I Love You” – Active engagement1) Loyal 2) Relationship based 3) Recommendation behavior
  44. 44. “I defend you” Transaction StageAdvocacy: “I Defend You” – Highly Active Engagement1) Affinity 2) Proactive defender 3) Collaborative 4) Connected
  45. 45. Measure and monitor the journeyIdentify, Engage, Enable, Encourage Fierce Advocates UnaidedAwareness 23% NW Local Most Insurer Preferred 35% 45% Approx. 200,000 Over 94% Households Retention Approx. 45% C.L.S. (Loyalty) ?
  46. 46. Awareness To Advocacy • In reality, the model is less linear and more circular. • Advocacy can be touched and impacted – pro or con – at each stage. • The ideal result is to fuel “The Advocacy Engine” with timely and relevant conversations consistently and regularly.
  47. 47. 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.
  48. 48. Developing brand continuity that pays 1. Compare and contrast 2. Plan and develop 3. Implement and monitor 4. Follow up and validate 5. Keep eye on the prize 6. Don’t repeat mistakes 7. Establish results-based investing
  49. 49. Listen to your agents with open minds. 1. Compare and contrast • Assess and Identify common traits and values of both brands • Review and establish brand guidelines for both parties • Determine where brands are NOT aligned and avoid those intersections.
  50. 50. Establish a plan for success. 2. Plan and develop • Establish common goals and desired outcomes for the collaborative effort • Agree on support and investments • Establish and follow a review process • Assess deliverables and results • Set tracking methods and metrics.
  51. 51. Work your plan – Be opportunistic 3. Implement and monitor • Agency leads the way • Communicate and implement launch plans with all stakeholders • Monitor and review opportunities for improvement and next steps.
  52. 52. Inspect what you expect. 3. Implement and monitor • Agency leads the way • Communicate and implement launch plans with all stakeholders • Monitor and review opportunities for improvement and next steps. 4. Follow up and validate • Assess deliverables and impact • Stay current on financial obligations • Review metrics and determine success.
  53. 53. Focus, listen, add value. Be different! 5. Keep your eye on the prize • Remember who is closest to customer • Listen. Ask questions. Listen some more. • Act local, spend local, be local • Add value to the brand ladder • Be creative, flexible, and nimble • Support out-of-the-box ideas.
  54. 54. Learn from effort – Don’t repeat mistakes. 5. Keep your eye on the prize • Remember who is closest to customer • Listen. Ask questions. Listen some more. • Act local, spend local, be local • Add value to the brand ladder • Be creative, flexible, and nimble • Support out-of-the-box ideas. 6. Don’t repeat what doesn’t work • Carrier branded templates for direct mail, newspaper, broadcast, out of home • Heavy-handed co-op rules.
  55. 55. Reward performance with investments. Available to all eligible agencies • Puts agency in control and holds accountable Designed to help sell more products • 50/50 matching funds from first dollar • Focused on local use – Co-branded Action and result-based techniques • Funds determined by prior-year production • Failure to grow reduces next year’s funding Keeping it simple • Agency selects options, sets their plan, runs their program, reports their results.
  56. 56. Let’s ConnectTwitter: @NW_Mktg_GuyFacebook: Rod BrooksBlog: www.rodbrooks.com
  57. 57. A Shameless Plug “The leading organization for advancing theart and science of “talkable brands” and advocacy”. Case Studies from market leaders Ethical Leadership - Best Practices Online and Offline - Measurable ROI Enthusiasts – Brands – Service Providers www.womma.org

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