OverviewI. Who is PEMCO?II. Our visionIII. Winning strategyIV. Scalable tacticsV. Conclusion
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.
Know whats importantWorld-ClassCustomer ExperiencePEMCO BUSINESS MODEL • Integrity • Responsibility • Courage• Leads with relationship
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, even strangers online • New & unfamiliar channels are sustaining brand conversations
Our vision PEMC O gets it! stomer – Voice of the CuPEMCO 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.
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.
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.
PEMCO’s winning approach Different because we live, Differentiate on work, learn and play in the hyper local same communities. Grow and evolve tools to Achieve meaningful reach and connect with broad interaction consumer base Invest in long-term consumer Deliver world class relationships throughcustomer experience consistent engagement
Offline communication programs1 2 3 Marketing Community Sales • Advertising • Grants & • Direct Agents Partnerships • Independent • Media Relations • Participation Agents • Events and sponsorships • Donations
Lead with relationshipImplement an integrated, scalable, dynamicrelationship building program 1 2 3 Awareness Impact Frequency • Multi-channel • Offline • Consistency • Easily sharable • Experiential • Dependability • Output growth • Personal • Familiarity
Lead with relationship: AwarenessMulti-channel Sharable Output growth Traditional Talk worthy Sustained input Surprise & Events Online delight Web Offline Value exchange PR Insider Info Direct mail
Lead with relationship: Impact Offline Experiential Personal
Lead with relationship: FrequencyConsistency Dependability Familiarity
Metrics: Community relationsBuilding powerful & enduring relationships offline 98% • Contributed to or volunteered with local organizations 82% • Donated to a company sponsored events 67% • Volunteer for non-PEMCO affiliated organizations 15% • Board members on a community or non-profit organization
Metrics: ConversationsActivities drive insurance conversations Had a conversation about auto insurance in the past month40%35%30%25% Insurance20%15% PEMCO10% 5% 0% Mar 09 Sept 09 Mar 10 Feb 11
Metrics: ConversationsActivities drive insurance conversations…offline! 91% • Of insurance conversations occur in person as opposed to online100%80%60%40% Online In-person20% 0%