Social - A PEMCO story in under 20 minutes

Rod Brooks Vice President & Chief Marketing Officer,

PEMCO Mutual Insurance Company

In under 20 minutes…

Nice to meet you.

Just in case – The video

The challenge.

Jerry McGuire syndrome.

Blending Online & Offline

1

2

3

4

5

Know what's important

• Leads with relationship

• Integrity

• Responsibility

• Courage

World-Class

Customer Experience PEMCO BUSINESS MODEL

Our BHAG: Big Hairy Audacious Goal

PEMCO customers

can’t stand the thought

of friends & family

doing business with

anyone else.

“Never have to advertise

for a lead again”

Insurance is …

The law

Not valued

Not trusted

Not well understood

Can only

“win” by

“losing”

Jerry McGuire syndrome can be contagious!

Show me the money

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.

Four billion dollars is like brand magic!

Warren Buffet

- GEICO

“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’re not slowing down

until we get the job done. And our job is to capture the hearts and minds

[of potential customers].”

Pam El, Marketing V.P.

State Farm Insurance

“We wanted to kick Flo’s ass!”

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

Four billion dollars is like brand magic!

Four billion dollars is like brand magic!

Four billion dollars is like brand magic!

Four billion dollars is like brand magic!

Top 5 Carriers Spent $2.39 Billion Dollars

In 2009

Tools in the toolbox

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Tools in the toolbox

27

Engage in meaningful, relevant ways

29

Local fans and fan favorites!

Know your talkers!

Media partnerships

Get more than you pay for

Share your spotlight moments

Make it fun and relevant

Give them something to talk about!

Facilitate engagement

Make it easy to share!

Put a camera in their hands

Make it fun and relevant

Make it easy to share!

Make it easily shareable

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%).

Tri-County Preferred Drivers

January

2008

April

2008

Nov

2008

March

2009

September

2009

March

2010

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

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.

Reason 2001 2002 2005 2007 2008 2009 2010

Price 60% 62% 50% 50% 36% 40% 33%

Referral and/or

Recommendation

10% 12% 17% 20% 22% 22% 32%

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%

Market

When you first chose to purchase auto insurance with (carrier)

why did you select this company for your insurance?

43

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.

Reason 2001 2002 2005 2007 2008 2009 2010

Price 60% 62% 50% 50% 36% 40% 33%

Referral and/or

Recommendation

10% 12% 17% 20% 22% 22% 32%

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%

Market

When you first chose to purchase auto insurance with (carrier)

why did you select this company for your insurance?

44

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%

Let’s Connect Twitter: @NW_Mktg_Guy

Facebook: Rod Brooks

Blog: www.rodbrooks.com

Thank you!