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Differentiating In An Undifferentiated Industry


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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)

Published in: Business, Economy & Finance

Differentiating In An Undifferentiated Industry

  1. 1. Rod BrooksVP & Chief Marketing Officer, PEMCO InsurancePresident: Word of Mouth Marketing Association
  2. 2. Evening Magazine
  3. 3. Seeing The EdgeDifferentiating in anundifferentiated industry
  4. 4. Who is PEMCO?World-ClassCustomer ExperiencePEMCO BUSINESS MODEL • Integrity • Responsibility • Courage• Leads with relationship
  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. 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?
  7. 7. Our BHAG: Big Hairy Audacious Goal “Never have to advertise for a lead again” PEMCO customers can’t stand the thought of friends & family doing business with anyone else.
  8. 8. PEMCO’s winning approach Differentiate Different because we live, work, learn on hyper local and play in the same communities. Achieve meaningful Grow and evolve tools to reach and interaction connect with broad consumer base Invest in long-term relationships with Deliver world class consumers through consistent customer experience engagement
  9. 9. Our situation in 2007 PEMCOShare of 3%advertisingvoice was lessthan 3% in the $55 Millionprior 2 years 2005-2006
  10. 10. Our situation in 2007 Brand Awareness 100 80 60 40 Geico State 20 Farm AllState Farmers PEMCO 00
  11. 11. Our situation in 2007 Market Share20151005 8.3 7.9 7.4 7.1 7.2 7.1 6.7 6.400
  12. 12. Employee moral GOING IN THE WRONG DIRECTION
  13. 13. Market oportunity
  14. 14. Insurance is … The law Not valued Not trustedNot well understood
  15. 15. Can only“win” by“losing”
  16. 16. ALWAYSSHOPPINGSee very little productdifferentiation
  18. 18. Challenges: old and new1 Industry• Highly regulated industry• Product perceived as a commodity• Insurance is an unsought product2 Environment• Consumers heavily influenced by peers, friends, strangers online• New & unfamiliar channels are sustaining brand conversations
  19. 19. Be likeable When all you have is rocks, you need a better plan.
  20. 20. Be likeable• Challenge Status Quo• Highly Nimble• Innovative & Creative• Well Defined Strategies• Leverages Partnerships• Capitalizes on WOM of loyal customers• Builds Fierce Advocates
  21. 21. Extensive research initiative Consumer • 100 In-home Ethnographic Interviews • Important aspects of consideration Research • Key influences of decisions they make Internal • Cross Functional & Multi-level Conversations • Culture, Values, and Challenges Reviews • Strengths and Opportunities Competitive • Studied Top Twelve Companies – S.W.O.T. • Product, Price and Brand Positioning Assessment • Advertising, Messaging, Distribution and P.R.
  22. 22. Some of thepeople we talked to!
  23. 23. Leaders in innovation – Proud!
  24. 24. Incredibly GREEN
  25. 25. LOVE THE LOCAL GUY Hometown Heros Local Trumps Large Personal Trumps Price
  26. 26. Unique, Quirky and COLORFUL
  27. 27. Jerry McGuire Syndrome
  28. 28. 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.
  29. 29. 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 Buffet - GEICONobody wants to sit around and talk about 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].”
  30. 30. Four billion dollars is like brand magic!
  31. 31. Four billion dollars is like brand magic! Top 5 Carriers Spent $2.39 Billion Dollars In 2009
  32. 32. And the trend continues Advertising spending topped $5 BILLION in 2010
  33. 33. PEMCO’s success depends on the positive opinion of people like me.They listen, participate, encourage and enable me to share with others. Listen Enable + Participate Partnership Encourage
  34. 34. “I know you”Initial: “I Know You” – Low Engagement1) Familiar 2) Assessing & Evaluating 3) Consideration
  35. 35. “I like you”Transaction: “I Like You” – Moderate Engagement1) Functional 2) Transactional 3) Expectations met
  36. 36. “I love you”Mature: “I Love You” – Active Engagement1) Loyal 2) Relationship based 3) Recommendation behavior
  37. 37. “I defend you”Mature: “I Defend You” – Active Engagement1) Affinity 2) Proactive defender 3) Collaborative
  38. 38. 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.
  39. 39. Tools in the toolbox
  40. 40. Tools in the toolbox
  41. 41. Keeping it real – focus on people
  42. 42. Act Local - To Be Local!Where they live, work, learn and play.
  43. 43. Act Local - To Be Local!Where they live, work, learn and play.
  44. 44. PEMCO brand ambassadors
  45. 45. WALLY on the road In 2011, PEMCO will sponsor and participate in more than 100 Northwest events!
  46. 46. Serving community & neighbors Empower employees Support health & education Celebrate Northwest
  47. 47. Local retailersCelebrate a shared audience
  48. 48. Local servicesLeverage shared interests
  49. 49. Local franchises & fansKnow your talkers!
  50. 50. Facilitate engagementGive them something to share
  51. 51. Community agent partnersAmplify hyper-local community initiatives
  52. 52. Connect with communityService-oriented activities create conversation
  53. 53. Spark conversationIntegrate “talkable” campaign elements into events
  54. 54. YOUR EDGE