Browsing Tag

geico

Be A Better Brand Manager: Measure Everything

It’s pop quiz time! Where do baby Geckos come from?

If your answer begins “When a Mommy Gecko and a Daddy Gecko love each other very much…” stop now. And this isn’t really part of the ever-popular live birth vs. eggs debate either. Geckos, or at least the Geico Gecko, which is the one we’re particularly interested in, owes its ongoing existence to a very proud set of data.

In an interview with AdAge, Ted Ward, Geico’s CMO, said, “The green scaly spokes-character you reference was actually born in a petri dish of data. The Gecko was ‘hatched’ with absolutely no research or even the intention of producing a long-running, iconic campaign. The fact is we analyzed results from running the first set of Gecko TV spots and liked the bump in business volume. We were able to attribute the increased business to the campaign and decided to move forward with additional Gecko executions. From that point on we have incorporated more traditional market research to track and monitor consumer sentiment related to the little green guy.”

Cult Brands Measure Everything

The measurement-centric approach definitely appears to be working. Geico appears to be on the verge of moving past Allstate to capture the #2 spot in the highly competitive auto insurance industry. Many pundits have attributed Geico’s success to their huge advertising budget, but as we all know, there are plenty of brands out there that do a ton of advertising without achieving a dominant position in their industry.

What makes the Geico story important for brand managers is the explicit relationship between marketing campaigns and the measurement thereof. When Geico knew, with a high degree of certainty, what types of messaging were most effective at capturing both customer interest and business, they were able to replicate the essential elements of that campaign in other campaigns.  Geico’s Cavemen and Maxwell the Pig campaigns were both powerful tools for the brand, but who knows if they ever would have seen the light of day if there’d been no data to support the fact that quirky humor helped sell car insurance?

Being unique in the marketplace is not easy. Creativity requires courage. That creative courage is sometimes at odds with institutional decision makers who prefer a more conservative approach. Measuring everything and making smart use of the data makes it easier to get the creative freedom you need to be an effective brand manager because you can say, with a high degree of certainty, that your campaigns will be successful before you launch them.

Be a Better Brand Manager: The Essentials

Data is your friend. The more you know about your customers, including how they find you, their path to purchasing, and how they talk about you online, the better you’ll be able to serve them.

Data needs interpretation to be a meaningful asset. Ideally, you’re looking for identifiable patterns of behavior held in common by significant numbers of your customers. This will allow you to figure out how well your campaigns are working.

Be willing to accept that data doesn’t always dance the way you want it to. The results of inquiry will not always yield up  the answers you’re hoping to hear. Great brand managers listen to what their customers are telling them.

Nationwide Insurance: Speeding Toward Success

One of NASCAR’s biggest stars, driver Dale Earnhardt, Jr., has been a spokesperson for Nationwide Insurance for many years. Here’s one of the most recent commercials he’s done for Nationwide.

We really like this commercial because it articulates many of the key concepts of Brand Modeling. In the first ten seconds of the spot, Dale Earnhardt Jr. explains (and we’re paraphrasing here) that as a NASCAR owner and driver, he knows that there’s nothing more important than pleasing the fans. Pleasing the fans is the top priority, because without the fans, there’s no NASCAR. Just like without their customers, there’s no Nationwide.

Earnhardt continues to explain that Nationwide reports to their customers, not to Wall Street. Throughout the spot, the message is clear: the Nationwide approach puts customers in the driver’s seat.

Brand Modeling: Key Concepts

Nationwide’s approach is one we’ve seen consistently used by Cult Brands and dominant organizations.  Companies that win are doing so by focusing on the needs of their best customers. Identifying who an organization’s best customers are, learning what psychological factors motivate their decision making, and meeting their needs in the most satisfying fashion possible is a proven formula for success.

Nationwide currently enjoys a reported 4.5% of the automotive insurance market. This market is highly competitive, currently dominated by State Farm and Allstate. Together, the two companies control a little less than a third of the entire market. Nationwide is also vying with Geico, Progressive, and Farmer’s. What’s the best way for this insurance company to stand out from the pack, capture customer attention, and gain market share?

Identify The Most Valuable Customer

NASCAR became a phenomenon by focusing on the needs of their best customers: the thousands of loyal fans who never miss a race, who travel countless miles and spend thousands to see their favorite drivers live, who wear NASCAR apparel and participate in racing fan communities online. By catering exclusively and exhaustively to these fans, NASCAR has thrived. People are passionate about car racing.

They’re not necessarily as passionate about car insurance. Yet Nationwide needs to know just as much about their customers as NASCAR does. NASCAR can articulate, clearly and with pinpoint precision, what leads someone to join the NASCAR Nation. They know their fans love exciting races with fantastic finishes, exhaustive information about their favorite cars and drivers, and the sense of community that has built up around the sport of racing. To thrive, NASCAR needs to keep delivering these essential elements. Otherwise, their fans will find other ways to occupy their attention and command their entertainment dollar.

Nationwide’s focus on the customer could begin with examining what it takes to belong to Nation Nationwide. A percentage of the insurance market will always be driven by nothing more than price and convenience. However, by looking at Nationwide’s best customers—those that have multiple policies with Nationwide, who enthusiastically recommend Nationwide to their family and friends—and identifying what they value most about their car insurance company, it becomes possible to craft strategically targeted marketing messages designed to attract new customers who are very likely to be highly satisfied with (and profitable for!) Nationwide.

Is Nationwide on the right track? It looks that way. If this customer focused approach is implemented consistently, they might even make it in record time!