Archive for the ‘Achievement’ Category

Liberty Mutual Takes a Bold Risk

Tuesday, November 11th, 2008

In the past couple of years, auto insurance has sprung into a position as one of the noisiest advertising categories in the world. Whether it’s the Geico cavemen or All State State Farm at the MLB All-Star Game, there’s apparently a lot of money to be made by getting in front of our eyeballs to talk insurance rates. But an underdog success story is forming around Liberty Mutual, which has moved its marketing approach to meaning and is starting to reap some powerful returns.

Thanks to David Hessekiel at the Cause Marketing Forum, I found the video interview below with Liberty Mutual’s Senior VP of Communications, Steven Sullivan. Sullivan tells an impressive story of Liberty Mutual’s strategy for increasing its share of the profitable auto insurance market, from a position as a smaller player with smaller budget.

What I found most fascinating was that Liberty Mutual and its new advertising agency, Hill-Holliday, started to build its strategy by looking within. They gravitated to the company’s mission statement, which ended with the line: “helping people live safer, more secure lives.” They then interviewed employees to understand what they felt was special about Liberty Mutual. This research led to a strong overall belief that, “at the end of the day, we do the right thing.”

Liberty Mutual saw a connection between its employees and the customers it most coveted. The connection was a shared belief in the importance of personal responsibility. However, the team realized that just another 30-second ad would not be enough….

How do you really make something like that tangible? How do you connect with people in a way that’s not just another claim from a big insurance company that people are going to disbelieve?” (Steven Sullivan, Senior VP of Communications, Liberty Mutual)

The marketing team’s solution was to use television and print ads to build awareness of the importance of personal responsibility, and then drive them to engage and discuss the issues with others. The hub of this deeper engagement has been a website called The Responsibility Project, which includes video stories of personal choices around responsibility. And Liberty Mutual poses engaging debate questions on popular news sites – for example, asking if government should be responsible for regulating trans fats in restaurants.

While many brands claim that their consumers wish to engage in a dialogue, Sullivan has proof. Within months of its campaign launch, the company received more than 3,000 requests thanking them for promoting this message and asking for copies of the commercials that they could share in schools and churches. One man who doesn’t drive even sent in a $20 donation to the “cause.”

This Liberty Mutual campaign hits on what we label as “achievement” in the realm of meaningful marketing.  It is the highest form of meaning in that it has the potential to actually help people improve their lives, their family, and the world. The company is continuing its success and deepening its impact; for example, it has partnered with NBC to develop two made-for-TV movies that will promote the theme of personal responsibility.

And at the end of the day, this campaign seems to be a significant business builder. Liberty Mutual’s premium revenue in auto insurance is up 17.4% to $3.6 billion in the most recent six months, in part due to “strong customer retention and new business growth.” The added benefit is that by bonding with people who believe in personal responsibility, they are keeping and attracting the most profitable customers – the ones who take personal responsibility for not getting into auto accidents in the first place! Sure enough, the six-month numbers show that auto liability losses are down.

Our goal is to get people to say that Liberty Mutual shares my values and I’m going to get my insurance from them.” (Steven Sullivan, Senior VP of Communications, Liberty Mutual)

I also believe there is a strong long-term benefit to be seen in Marketing with Meaning and this specific  example. While Geico might be remembered fondly for years for its cute cavemen and gecko, Liberty Mutual has a chance of deeply linking in our minds as a company that stands for something uniquely important to our lives and society overall.

Delta Makes Me Smile (again)

Wednesday, September 24th, 2008

A few weeks ago I wrote about a great experience with Delta, in which the airline noticed that I was stuck in the middle seat on a Monday morning and rewarded me with an apology and a few bonus miles. This week, I was again pleasantly surprised with a nice charitable tie-in to the Breast Cancer Research Foundation.

I received an email from Delta inviting me to register for a promotion in which 250 miles would go to both me and the Breast Cancer Research Foundation if I simply booked a flight or checked in online at Delta.com. In terms of meaning, this provides value to me on two levels. First, I’m definitely a mile collector, and I like the chance to add a few to the bank for future free tickets. We call this Solution marketing.

But this goes further to add the benefit of helping me, in a small way, improve the lives of others by sending miles to this worthy cause. All I have to do is print a boarding pass online, so it’s little effort and a nice reward. It makes me feel a little better about myself.

And this is where the marketing benefits kick in for Delta. The brand benefits by linking the benefit to an action that builds Delta’s business. It might sell a couple more tickets, and also saves on costs by getting people to check in online. Shifting habits might lead to long-term benefits for Delta.

Another long-term benefit is the boost to the brand equity. Smart cause tie-ins like this make customers feel better about giving their business to Delta.

Finally, thanks to its loyalty program and ability to track customers through extensive data on each interaction, Delta can get ROI results for even modest promotions like this, and it can start personalizing the offers that it provides to individual members. Delta might find that it is more meaningful for me to receive cause-related offers, resulting in greater efficiency and results.

University of Phoenix Misses an Opportunity

Friday, July 11th, 2008

I am a huge fan of online education. I believe the combination of a rising cost of college, increased need by workers to retrain themselves to adapt to global competition, and the low-cost/scale efficiency of the Internet will dramatically boost this business model. A leader in online education that I’ve had my eye on for a while is the University of Phoenix. This school has revenues of $2.7 billion, has a very strong 23% operating margin, and grew enrollment by 11% last year.

Naturally, I was excited to see Adrants post about U of P’s latest online advertising campaign. Banner ads like the one above say: “19 years old. Works part time. Blogs daily. Goes to school online. If she can do it, so can you.” Adrants’ Angela Natividad praised the campaign’s apparent targeting of bloggers. She loves the insight that bloggers like her work their butts off to create content each day.

I can see where you could argue that this ad has everything going for it. Daily bloggers are a target audience that is active online and motivated by self-improvement (check). The ad media buy is online, where these people spend much of their time (check). And the ad uses a good insight and simple idea to communicate the benefit (check). The perfect ad, right? Wrong.

The University of Phoenix has missed an incredible opportunity to bring meaningful marketing to this focused target. The online education category is a perfect target for Marketing with Meaning. After all, education itself is a pretty meaningful service. And a niche focus on bloggers could really help the school come up with very specific ideas that are relevant and helpful to this group. Here are just a couple of ideas off the top of my head, all of which offer a much deeper personal experience than a static banner ad with cute copy:

  • Let people “audit” one session of any of the classes taught at the University of Phoenix.
  • Set up a discussion board where prospective students can ask questions of current students and alumni.
  • Share a listing of University of Phoenix student blogs so that we could see how they manage their time and how they enjoy the experience.
  • Create a special online class that addresses barriers that people may have and/or gives them a taste of how great the University of Phoenix can be, for example, classes on “How to Fit Online Education Into Your Schedule.”
  • Grab attention in the blogosphere and buddy up with bloggers by offering a course that helps them perfect their craft – say, “Journalism for Bloggers.”

I find it interesting to read that the University of Phoenix is in the middle of a search for a new advertising agency. If this is the kind of work they are getting, I can see why. The school is spending more than $200 million per year in media, with the bulk of it going to online efforts. That’s ample resources for doing something dramatically meaningful. Heck, U of P might even find that more meaningful marketing allows it to reduce the cost of new student acquisition.

So it’s blatant plug time: If anyone at the University of Phoenix is reading this, give us a call and we’d love to hop on a plane and share more thoughts! Alternatively, if you’ve got some meaningful marketing to share I would love to feature it here.

Cannes Day 1: Meaning Abounds

Wednesday, June 18th, 2008

I’ve been here at the Cannes advertising festival less than 10 hours and what I have seen and heard so far has blown away my expectations in terms of meaningful marketing. Of course my going-in impression was that Cannes is a tribute to navel-gazing creative work that desperately wants to be considered artwork. I pictured a lot of people in too-school-for-cool outfits smoking cigarettes and exchanging cynicisms. Instead, I find Cannes to be a more egalitarian environment of people anxious to break our careers into something more meaningful. Net, the epicenter of advertising is ready for meaningful marketing.

There were two sessions that really got me charged up and had me wearing through a notebook. First was a session featuring Nike’s Stefan Olander, Global Director for Brand Connections. As you might have guessed, Nike is a leading brand in the move to create more meaningful marketing, and Stefan presented several killer insights. For example:

  • Nike added a design studio with consultants to its Nike Stores to help people better design their Nike ID shoes.
  • They created “The Ballers Network” after noticing that a big issue with playing basketball is organizing the dates and times among friends. It’s an application in Facebook that makes it easy for friends to coordinate. On top of this useful tool it adds locations and info from 1,700 courts around the world, player reviews and scouting reports, score recordings, and a mobile version for courtside.
  • Nike is promoting its Nike+ service with “The Human Race 10k,” which will have races in 25 cities and including people running and uploading from their homes. The hope is to have 1 million participants on one day around the world.
  • Finally, Nike announced the launch of a new avatar tool called the “Nike+ Mini” (example above). It’s like a Nintendo Mii that you design as you like and post to your blog or Facebook page. Further, it actually reacts according to how much you’re running in the real world, i.e., run a lot, and it goes faster, slack off and it, too, loses pace. It’s a great way to create fun, deepen the community, and add a little more motivation (“I don’t want to make my Mini look like he’s slacking!”).

Nike continues to blow me away with its wholehearted dive into meaningful marketing. Stefan also shared data, such as the fact that “30% of Nike+ users come to the site three or more times per week.” He said that people who don’t have their Nike+ sensors with them will simply skip running “because they want credit for their achievements.” Overall, Stefan summed up Nike’s approach as follows:

“If we can do something good for somebody, they will repay us with sales.”

My second interesting session came from Contagious Magazine and Leo Burnett Worldwide. Leo is driving a meaningful-marketing-type quote around “moving from ads to acts,” and Contagious has “been tracking the branded utility space for three years.” (In fact, a reporter from the magazine interviewed me two weeks ago for a big upcoming piece.) The two shared several examples of meaningful marketing, some new, some old. I was struck, though, by how the examples they shared touched so few people – especially compared to traditional advertising’s reach into the tens of millions. For example:

  • 7,900 people downloaded a widget for Nike+.
  • Guinness created a mobile tour guide in Catonese for the 20,000 people who visited Hong Kong for a rugby tournament.
  • 5,000 people in Australia uploaded photos for a Canon promotion.
  • Big brands are running product placement on a webiseries called “Kate Modern” that 1.5 million people view each week around the world.

These are small numbers. So small that I’d have a hard time telling a client these looked good, much less bragging in front of thousands of people at Cannes. I’m personally a big fan of much deeper engagement with fewer people, rather than a massive reach play with millions of interruptions. But we also need to take a hard look at the numbers behind these amazingly creative (and meaningful) programs, and ensure that they are achieving enough scale to actually move the needle on revenues.

OK, time to cat nap before my first night on the town at Cannes. We’ll see if the cocktail conversation is as meaningful as the work we saw today.

Pedigree Justly Awarded

Friday, June 6th, 2008

This week Pedigree dog food and its agency, TBWA/Chiat/Day, won the grand prize in the 27th annual Kelly Awards, a show presented by the Magazine Publishers of America that honors creative excellence and effectiveness in magazine ads.

Pedigree won top honors with a marketing campaign that drew attention to the plight of dogs living in shelters, asking people to contribute time and money to dog shelters, and asking people to adopt pets of their own.  Compelling print ads were accompanied by a website that provides information for prospective adopters.

The results show success on both Meaning and Marketing objectives.  According to Ad Age, the campaign “raised $2.7 million for shelter dogs and contributed to double-digit sales growth for Pedigree.”  What’s more, TBWA/Chiat/Day is contributing the entire $100,000 in prize money to the Pedigree Adoption Drive Foundation.  That’s a big deal in the agency world of tight margins!

For years advertisers have used cute puppies in ads to sell products.  Now they’re actually saving cute puppies through ads, and selling products.  That’s a nice win-win.