Can a small home insurer in a hurricane-prone market blow the doors off State Farm?
People’s Trust Insurance found themselves in the eye of of a hurricane. A Category 5 hurricane.
The Florida-based home insurer was being pounded on all sides. From the right - known as the “dirty” side - an exceptionally active hurricane season had led to an unusually high number of claims. As a result, Florida home insurance rates were skyrocketing. Homeowners could no longer afford to insure their homes – and many weren’t.
From the left - the “clean” side - mega insurers such as Nationwide and State Farm were outspending People’s Trust 1,000 to 1 in the state.
The news wasn’t all bad. A number of major home insurers were pulling out of the Florida market, forcing home insurers to scramble to find a new solution. Despite the challenges,
The challenge: Generating 100,000 new policyholders in a single year
People’s Trust sought to take advantage of the new competitive reality by setting an aggressive goal: Generate 100,000 more policyholders over the next 12 months – an increase in more than 100%.
After conducting a thorough marketing audit, I saw three opportunities to improve People’s Trust marketing: targeting, tactics and messaging.
Targeting. I reviewed PTI customer data to identify audience segments that could effectively be targeted. Trigger programs were developed targeting homeowners with expiring insurance. Demographic targeting campaigns were introduced, focusing on core and niche audiences.
Tactics. Their core audience -- the 55+ consumer – prefers talking to a live person before making a purchase decision. PTI’s in-house call center was highly effective, converting prospects at a high rate. Knowing this, I targeted core customer lookalikes with direct mail designed to drive calls, not clicks.
Message. Skyrocketing rates and ongoing support issues created a high level of distrust. Our strategy was to position PTI as the Florida-born insurer who understood the concerns of Florida homeowners - because they were Florida homeowners themselves.
Personalized messages spoke to the challenges faced by homeowners in the area - challenges shared by the employees of Peoples’ Trust. As a result, brand relevancy and appeal skyrocketed over the course of the campaign.
