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

1. Rod Brooks
Vice President & Chief Marketing Officer,
PEMCO Mutual Insurance Company

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

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. Our Vision
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.

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.

9. Branding Playbook:
Your Company or Your Agencies
The importance of leveraging brand assets.

10. Jerry McGuire syndrome can be contagious!
Show me the money

11. 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.

12. 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
Nobody 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].”

13. Four billion dollars is like brand magic!

14. Four billion dollars is like brand magic!

15. Four billion dollars is like brand magic!

16. Four billion dollars is like brand magic!

17. Four billion dollars is like brand magic!
Top 5 Carriers
Spent $2.39
Billion Dollars
In 2009

18. Four billion dollars is like brand magic!
Top 5 Carriers
Spent $2.39
Billion Dollars
In 2009

19. Four billion dollars is like brand magic!
Top 5 Carriers
Spent $2.39
Billion Dollars
In 2009

20. Four billion dollars is like brand magic!
Top 5 Carriers
Spent $2.39
Billion Dollars
In 2009

21. Four billion dollars is like brand magic!
Top 5 Carriers
Spent $2.39
Billion Dollars
In 2009

23. Challengers
A Challenger is, above all,
a state of mind rather than
a state of market.
Challenger Brands are the
brands that inspire us.
Brands that we respect
and remember; that we
are attracted to.
After all…
No one roots for Goliath.

24. Battle Field
• Challenge Status Quo
• Highly Nimble
• Innovative & Creative
• Defined Strategies
• Leverages Partnerships
• Capitalizes on WOM of
loyal customers, and
• Lacks Economic Scale

25. Brand challenges and differing views
Carrier Agency Agent
1
Has invested Has invested Has spent
heavily in the heavily in the lifetime
INVESTMENT 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.

26. 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.

27. Brand challenges and differing views
Carrier Agency Agent
4
Expects Expects Believes that
consistency of consistency of the real brand
CONSISTENT 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.

28. 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.

29. 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.

30. 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.

31. 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”

32. 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!

33. 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.

34. Customer trained to rank order choices
• Best price?
• Best promise?
• Best value?

35. 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.

36. Brand ladder and consumer relevance
The third place... Think differently…
Between work and home. Challenge the status quo.

37. 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

38. 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

39. 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

40. 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 - Results
The Why is your driving The Hows are the specific The Whats are the tangible
motivation for action. actions that are taken to ways in which you bring your
realize your Why. Why to life.

41. Intersection of strategy and marketing...

42. …or road to nowhere!

43. Awareness to Advocacy
Transaction Stage
Close the loop on end to end engagement
1) Content 2) Connections 3) Collaboration

44. “I know you”
Transaction Stage
Initial: “I Know You” – Low Engagement
1) Familiar 2) Assessing & Evaluating 3) Consideration

45. “I like you”
Transaction Stage
Transaction: “I Like You” – Low Engagement
1) Functional 2) Transactional 3) Expectations met

46. “I love you”
Transaction Stage
Referral: “I Love You” – Active engagement
1) Loyal 2) Relationship based 3) Recommendation behavior

47. “I defend you”
Transaction Stage
Advocacy: “I Defend You” – Highly Active Engagement
1) Affinity 2) Proactive defender 3) Collaborative 4) Connected

48. Measure and monitor the journey
Identify, Engage, Enable, Encourage Fierce Advocates
Unaided
Awareness
23%
NW Local Most
Insurer Preferred
35% 45%
Approx.
200,000
Over
94%
Households Retention
Approx.
45% C.L.S.
(Loyalty)
?

49. 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.

50. 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.

51. 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

52. 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.

53. 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.

54. 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.

55. 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.

56. 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.

57. 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.

58. 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.

60. Let’s Connect
Twitter: @NW_Mktg_Guy
Facebook: Rod Brooks
Blog: www.rodbrooks.com

61. A Shameless Plug
“The leading organization for advancing the
art 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