This PEMCO case study showing how a hyper-local Northwest insurance company took word of mouth marketing offline was chosen to be a featured presentation at the 2011 WOMMA School of WOM.

1. Off line
Takin g it
M Scale
e WO
g Offlin
Makin

2. Overview
I. Who is PEMCO?
II. Our vision
III. Winning strategy
IV. Scalable tactics
V. Conclusion

3. 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.

4. Know what's important
World-Class
Customer Experience
PEMCO BUSINESS MODEL
• Integrity
• Responsibility
• Courage
• Leads with relationship

5. 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?
Why? Why? Why? Why?
of responsible 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?

6. Challenges: Old and new
1
Industry
• Highly regulated industry
• Product perceived as a commodity
• Insurance is an unsought product
2
Environment
• Consumers heavily influenced by peers, friends, even
strangers online
• New & unfamiliar channels are sustaining brand
conversations

7. ur Vision
O

8. Our vision
PEMC O gets it!
stomer
– Voice of the Cu
PEMCO is the Northwest insurance company
that “gets it.” An organization that’s great to do business with,
one that shares the values of those who live here, one that’s
genuinely likeable. It’s the first choice of responsible people.

9. 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.

10. S trat egy
Win ning

11. 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.

12. 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 through
customer experience consistent engagement

13. Tools in the toolbox

14. Tools in the toolbox

15. Offline communication programs
1
2
3
Marketing Community Sales
• Advertising • Grants & • Direct Agents
Partnerships
• Independent
• Media Relations
• Participation Agents
• Events and
sponsorships • Donations

16. Lead with relationship
Implement an integrated, scalable, dynamic
relationship building program
1
2
3
Awareness Impact Frequency
• Multi-channel • Offline • Consistency
• Easily sharable • Experiential • Dependability
• Output growth • Personal • Familiarity

17. Lead with relationship: Awareness
Multi-channel Sharable Output growth
Traditional Talk worthy Sustained input
Surprise &
Events Online
delight
Web Offline
Value exchange
PR Insider Info
Direct mail

18. Lead with relationship: Impact
Offline Experiential Personal

19. Lead with relationship: Frequency
Consistency Dependability Familiarity

20. Scale?
Wi ll It

21. Marketing partnerships
1
Local organization
2
Shared values
3
Common objectives

22. Local retailers
Celebrate a shared audience

23. Local services
Leverage shared interests

24. Local franchises & fans
Know your talkers!

25. Local franchises & fans
Know your talkers!

26. Make it fun and relevant
Give them something to talk about!

27. Make it fun and relevant
Make it easy to share!

28. Community agent partners
Amplify hyper-local community initiatives

29. Building powerful partnerships
Extending brand on a small budget
• Attract potential partners
• Lead with relationship
• Gauge image & reputation
• Seek complimentary strengths
• Capitalize on identity

30. Building powerful partnerships
Alignment
Re sults
ners Enhance
Enga ged Part
Purpose
Values
Vision
Commitment

31. Events and sponsorships
1
Local Commitment
2
Meaningful Interaction
3
Memorable & Recurring

32. PEMCO brand ambassadors
Empowered to build relationships
• Outgoing & enthusiastic
• Social media & tech savvy
• Strong writing skills
• Familiar with campaign
• Understand PEMCO brand
• Customer service background

33. Connect with community
Service-oriented activities create conversation

34. Facilitate engagement
Personalized souvenirs have life beyond events

35. Spark conversation
Integrate “talkable” campaign elements into events

36. Act local to be local
Livin’ la vida local!

37. WALLY… on the road
In 2011, PEMCO will sponsor
and participate in more than 100
events across Washington
Oregon

38. Media relationships
1
Timely news & safety info
2
Relevant feature stories
3
Northwest insights

39. Pitched features
Telling the story of PEMCO in the community

40. News & safety
Informing & educating

41. Northwest insights
Sharing attitudes & perceptions on local issues

42. Community relations
11
Celebrate Northwest
22
Uphold Educator Legacy
33
Empower Employees

43. Serving community & neighbors
Empower employees
Uphold educator roots
Celebrate Northwest

44. clusion…
In Con

45. PEMCO offline social graph
PEMCO teams from
across the
organization reach
consumers and their
networks with
tangible offline programs
the yield
measureable
results with scalable
output

46. PEMCO offline social graph
Each branch of PEMCO
offline activity is highly
integrated &
multidimensional,
connecting in
unexpected ways
with unanticipated
audiences & driving
engagement

47. Metrics: Marketing
Building powerful & enduring relationships offline
1.2m • Attendees to PEMCO sponsored events
19.5m • Potential impressions from 7 PEMCO Polls
25k • Personalized lanyards distributed
95 • Earned 2010 media hits

48. Metrics: Community relations
Building 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

49. Metrics: Conversations
Activities drive insurance conversations
Had a conversation about auto insurance in the past month
40%
35%
30%
25%
Insurance
20%
15% PEMCO
10%
5%
0%
Mar 09' Sept 09' Mar 10' Feb 11'

50. Metrics: Conversations
Activities drive insurance conversations…offline!
91% • Of insurance conversations occur in person as
opposed to online
100%
80%
60%
40% Online
In-person
20%
0%

51. Learned
Lessons

52. Lessons learned
1
Be clear about “Why” & “Who”
2
How: Meaningful, Experiential, Consistent
3
What: Personal & Community Engagement

54. Conn ect!
Let’s
@NW_Mktg_Guy @alyssa_no
www.rodbrooks.com

55. Questions?