A twenty minute hole appeared in the 2011 Social 301 Conference agenda and I got the call. This short story includes a video case and an example of how PEMCO has entered into social engagement with an integrated, online and offline approach.

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

2. In under 20 minutes…
1 Nice to meet you.
2 Just in case – The video
3 The challenge.
4 Jerry McGuire syndrome.
5 Blending Online & Offline

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

5. 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.

10. Insurance is …
The law
Not valued
Not trusted
Not well understood

11. Can only
“win” by
“losing”

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

15. 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.

16. 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
- GEICO
Nobody 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].”

17. Four billion dollars is like brand magic!

18. Four billion dollars is like brand magic!

19. Four billion dollars is like brand magic!

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

23. Tools in the toolbox
26

24. Tools in the toolbox
27

26. Engage in meaningful, relevant ways
29

27. Local fans and fan favorites!
Know your talkers!

28. Media partnerships

30. Get more than you pay for

31. Share your spotlight moments

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

34. Facilitate engagement
Make it easy to share!

35. Put a camera in their hands

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

37. Make it easily shareable

39. WOM conversations about insurance
Over the past two years, likelihood to talk about auto insurance has increased from 16% to 24%.
Likelihood to have a conversation about PEMCO’s ads has doubled (from 8% to 17%).
January April Nov March September March
2008 2008 2008 2009 2009 2010
Tri-County Preferred Drivers
Had a conversation about auto
insurance in the past month.
16% 23% 24% 20% 24% 24%
In-person conversation 95% 85% 86% 95% 90% 93%
Online conversation 12% 19% 14% 12% 17% 9%
Talked about PEMCO 17% 19% 24% 22% 22% 23%
Talked about GEICO 39% 51% 13% 56% 31% 35%
Had a conversation about
PEMCO’s ads in the past month
8% 15% 17% 21% 22% 17%
Not asked in June 2008
Percentages of those having conversations about auto insurance are based on the total sample
Percentages of those having conversations about PEMCO’s ads are based on those who remember PEMCO ads.
42

40. Why did they buy? (statewide preferred market)
For the first time, in 2010, referrals and recommendations are just as important
as price in understanding why people make their buying decision.
Market
Reason 2001 2002 2005 2007 2008 2009 2010
Price 60% 62% 50% 50% 36% 40% 33%
Referral and/or 10% 12% 17% 20% 22% 22% 32%
Recommendation
Liked the agent 15% 11% 9% 9% 9% 9% 13%
Good service 33% 23% 5% 4% 9% 4% 10%
Local company <1% <1% <1% <1% 9% 6% 7%
When you first chose to purchase auto insurance with (carrier)
why did you select this company for your insurance?
43

41. Why did they buy? (statewide preferred market)
For the first time, in 2010, referrals and recommendations are just as important
as price in understanding why people make their buying decision.
Market
Reason 2001 2002 2005 2007 2008 2009 2010
Price 60% 62% 50% 50% 36% 40% 33%
Referral and/or 10% 12% 17% 20% 22% 22% 32%
Recommendation
Liked the agent 15% 11% 9% 9% 9% 9% 13%
Good service 33% 23% 5% 4% 9% 4% 10%
Local company <1% <1% <1% <1% 9% 6% 7%
When you first chose to purchase auto insurance with (carrier)
why did you select this company for your insurance?
44

42. 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'

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

45. Thank you!
Let’s Connect
Twitter: @NW_Mktg_Guy
Facebook: Rod Brooks
Blog: www.rodbrooks.com