Taking it Offline

Making Offline WOM Scale

Overview

I. Who is PEMCO? II. Our vision III. Winning strategy IV. Scalable tactics V. 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 what's important

•  Leads with relationship

• Integrity • Responsibility • Courage

World-Class Customer Experience PEMCO BUSINESS MODEL

PEMCO’s “WHY”

We enable and protect the dreams of responsible Northwest people ?

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? 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? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why?

Challenges: Old and new

•  Highly regulated industry •  Product perceived as a commodity •  Insurance is an unsought product

Industry 1  

Environment 2  

•  Consumers heavily influenced by peers, friends, even strangers online

•  New & unfamiliar channels are sustaining brand conversations

Our Vision

Our vision

PEMCO gets it! – Voice of the Customer

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.

The BHAG: Our big hairy audacious goal

PEMCO customers can’t stand the thought of friends and family doing business with anyone else.

“Never have to advertise for a lead again”

Winning Strategy

Extensive research initiative

Consolidate three prior slides into one that simply depicts the magnitude of the three research efforts (Employee, Agents, Consumers)

•  100 In-home Ethnographic Interviews •  Important aspects of consideration •  Key influences of decisions they make

Consumer Research

•  Cross Functional & Multi-level Conversations •  Culture, Values, and Challenges •  Strengths and Opportunities

Internal Reviews

•  Studied Top Twelve Companies – S.W.O.T. •  Product, Price and Brand Positioning •  Advertising, Messaging, Distribution and P.R.

Competitive Assessment

PEMCO’s winning approach

Differentiate on hyper local

Deliver world class customer experience

Achieve meaningful interaction

Different because we live, work, learn and play in the same communities.

Grow and evolve tools to reach and connect with broad consumer base

Invest in long-term consumer relationships through consistent engagement

Tools in the toolbox

Tools in the toolbox

Offline communication programs

Marketing 1  

Community 2  

Sales 3  

• Advertising

• Media Relations • Events and sponsorships

• Grants & Partnerships

• Participation

• Donations

• Direct Agents • Independent Agents

• Multi-channel •  Easily sharable • Output growth

•  Offline •  Experiential •  Personal

•  Consistency •  Dependability •  Familiarity

Lead with relationship

Awareness 1  

Impact 2   Frequency

3  

Implement an integrated, scalable, dynamic relationship building program

Lead with relationship: Awareness

Multi-channel

Sharable

Output growth

Traditional

Events

Web

PR

Direct mail

Sustained input Surprise &

delight Value exchange

Insider Info

Talk worthy

Online

Offline

Lead with relationship: Impact

Offline

Experiential

Personal

Lead with relationship: Frequency

Consistency

Dependability

Familiarity

Will It Scale?

Marketing partnerships

Local organization

Shared values

Common objectives

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Local retailers

Celebrate a shared audience

Local services

Leverage shared interests

Local franchises & fans

Know your talkers!

Local franchises & fans

Know your talkers!

Make it fun and relevant

Give them something to talk about!

Make it fun and relevant

Make it easy to share!

Community agent partners

Amplify hyper-local community initiatives

Building powerful partnerships

Extending brand on a small budget

•  Attract potential partners •  Lead with relationship •  Gauge image & reputation •  Seek complimentary strengths •  Capitalize on identity

Building powerful partnerships

Purpose Values Vision Commitment

Alignment

Engaged Partners Enhance Results

Events and sponsorships

Local Commitment

Meaningful Interaction

Memorable & Recurring

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Empowered to build relationships

PEMCO brand ambassadors

•  Outgoing & enthusiastic •  Social media & tech savvy •  Strong writing skills •  Familiar with campaign •  Understand PEMCO brand •  Customer service background

Connect with community

Service-oriented activities create conversation

Facilitate engagement

Personalized souvenirs have life beyond events

Spark conversation

Integrate “talkable” campaign elements into events

Act local to be local

Livin’ la vida local!

In 2011, PEMCO will sponsor and participate in more than 100 events across Washington Oregon

WALLY… on the road

Media relationships

Timely news & safety info

Relevant feature stories

Northwest insights

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Pitched features

Telling the story of PEMCO in the community

News & safety

Informing & educating

Northwest insights

Sharing attitudes & perceptions on local issues

Community relations

Celebrate Northwest

Uphold Educator Legacy

Empower Employees

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Serving community & neighbors

Celebrate Northwest

Empower employees

Uphold educator roots

In Conclusion…

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

PEMCO offline social graph

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

Metrics: Marketing

Building powerful & enduring relationships offline

•  Attendees to PEMCO sponsored events 1.2m •  Potential impressions from 7 PEMCO Polls 19.5m •  Personalized lanyards distributed 25k •  Earned 2010 media hits 95

Metrics: Community relations

Building powerful & enduring relationships offline

•  Contributed to or volunteered with local organizations 98%

•  Donated to a company sponsored events 82% •  Volunteer for non-PEMCO affiliated

organizations 67% •  Board members on a community or non-profit

organization 15%

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%

Lessons Learned

Lessons learned

Be clear about “Why” & “Who”

How: Meaningful, Experiential, Consistent

What: Personal & Community Engagement

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@NW_Mktg_Guy www.rodbrooks.com

@alyssa_no

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Questions?