Building For Your Future

1. Building For Your Future Marketing Your New Agency for Success

2. Welcome – Meet Your WC Marketing Team

3. Marketing Education Process • Building Your Future • National Sales Education Center (NSEC) • Technology For Your Future • In-office consultations (NAS/NAC) • Ongoing seminars & workshops

4. Agenda • The Marketing Position • What is Marketing? • Allstate Brand Strategy • Developing an Agency Marketing Plan • Overview of Marketing Support

5. In the '50s and ‘60s, consumers often… Watched the same TV shows Read the same magazines Bought the same products The Marketing Position The consumer landscape is changing… • Today, people are more unique… • People have many different needs • Life is more complex • Consumers have many more choices

6. The Marketing Position • Technology • New “gadgets” allow consumers to choose when, where, and how they get information • More media choices make mass advertising less effective • “Business of Choice” • Universe of consumers is relatively flat • # of service providers is growing • No new, untapped niche (customer base) …causing a shift of control from Marketers to Consumers

7. The Marketing Position Marketing Needs to Evolve… • Shift from Mass Advertising“Spray & Pray” • TO • Targeted Local Marketing&Customer Experience BasedDifferentiation

8. The Marketing Position • The Process of the Consumer Buying Decision: Value = Benefits / Price • Commodity Based Consumers (primarily price driven) • Value Based Consumers (understand the value of benefits) • Who are you choosing to sell to? • Do your choices align to your offering? • Are you prepared to answer the question:“Why should I buy from you – what makes you so special?”

9. The Marketing Position The challenge is finding a balanced approach. • Marketing Efforts • General (Mass) Advertising • “Spray & Pray” Approach • Inbound Acquisition Strategy • = Yields LLTV customers that are continuously “shoppers” (28%) • Marketing Efforts • Targeted Marketing • Relationship-Building • Outbound Acquisition Strategy • = Yields HLTV customers that retain and cross-sell better “non-shoppers” (72%) HLTV LLTV

10. Commodity Based Consumer Price-competitive product Responds to mass advertising (price messaging) Ease of purchase (direct, online) Quoting Proficiency “Order-taking” selling process Value Based Consumer Relationship driven Responds to targeted marketing(agency value messaging) Knowledgeable personal advisor Relationship-building/trust “Needs-based” selling process The Marketing Position An acquisition model based on retention

11. The Marketing Position Relationships: Bridging the gap between product & consumer to build loyalty Product • Agency • Targeted Marketing • Community Involvement • Networking • Meaningfultouch points • Thrilling, differentiatedexperience Consumer

12. What is Marketing?EMyth Definition Marketing is the research and analysis of your customers and the formulation of strategies and tactics that will shape your business processes.

13. EMyth - Marketing Lead Generation is creating awareness in your target markets and attracting customers to your products and services. Lead Conversion encompasses sales and the enrollment of customers and clients in your services. It’s the conversion of leads to buyers. Client Fulfillment includes producing and delivering on the promises made in lead generation and lead conversion.

14. Anything you do proactively to help: • attract consumers to your business • sell more products to existing customers • retain the customers you already service What is Marketing?

15. NATIONAL LOCAL AGENCY How does Allstate promote it’s brand? 3 levels of marketing

16. Brand Strategy As an Allstate Agency Owner, you have the opportunity to promote and leverage one of the most recognized brandsin the industry and the world.

17. National Marketing • Communicate brand image and differentiate brand from competition • Wide mix of media • Television • Radio • Print • Online • Sponsorships

18. Local Marketing • Supplements national efforts • Drives awareness of brand and products withlocally relevant messages • Broad media mix • Radio • Print • Online • Billboards • Direct mail

19. Advertising = Allstate(The “Big” A) Branding “Allstate” National Advertising TV Radio Print Online National Sponsorships Consumer Advocacy Points of Presence(Agency Locations) 1-800-Allstate Allstate.com Allstate Foundation Marketing = Agent(The “Little” A) Branding Your Agency Local Advertising(featuring the Agent) Networking/Community Involvement Centers of Influence (COI) Generate Leads/Sell Prospecting Processes Cross-sell Processes Cultivating Relationships Retention Processes Customer Experience Processes Interpersonal Skills Brand Strategy

20. START Why a Marketing Plan? Don’t let your marketing efforts look like this!

21. Getting Started • Suggested Guidelines to Consider: • Budgeting:Marketing Expenses* = 2 – 5% Gross Premium(i.e. - $1 Million Gross Premium x .02 or .05 = $20,000 - $50,000) • Annual Co-op Allowance: • $4,500 for under 0-12 month agencies • $3,000 for 13-24 month agencies • $2,000 for 25-36 month agencies • Executive Advantage: • New agents receive funds in 7th month based on 6 month RFG score

22. Getting Started • Regional Marketing Support: • TaG • $400 Credit • Direct Mail • Group Co-op advertising opportunities • Local event sponsorship opportunities • Lead generation programs

23. Developing Your Plan The Right People. The Right Message. The Right Place. 1. Target audience 2. Consumer needs 3. Timing is everything! The right people. The right message. The right place.

24. Understanding your market • What does your marketplace look like? • Demographic make-up • Socio-economic • Competitive landscape • Market trends

25. Reactor Mass Marketer Caller TargetMarketer Networker Cultivator The Marketing Position What type(s) of marketer are you? • Most business owners fall into more than one category • Need to shift focus more heavily to the right end of the scale to better reach today’s consumer

26. The Marketing Position • Targeter • Targeted advertising • Targeted mailings • Targeted lead development • Targeted re-quote process • Targeted networking What type(s) of marketer are you? • Reactor • Responds to inbound calls from National, Regional, and Local advertising campaigns • Networker • Community involvement • Event participation • Centers of Influence processes • Referral process • Mass Marketer • Blind quote mailings • Mass mailers • “Spray & Pray” advertising • Re-quote process • Internet leads • Cultivator • Cross-sell campaigns • Customer relationship building • Annual CPR’s • Retention processes • Referral process • Caller • Telemarketing • Follow-up calls to mailings • Customer calls

27. Reactive Inactive The Marketing Position What type of Marketing plan do you have? Interactive Proactive • Reactor • Mass Marketer • Caller • Target Marketer • Networker • Cultivator

28. The Marketing Position Top 3 Marketing Goals Get your name out.Branding your agency in your local community. Generate leads/sell.Find targeted prospects likely to buy or switch. Cross-sell/retain.Build deeper relationships with existing customers.

29. Future State of Marketing:Core Marketing Processes Get Your Name Out(Lead Generation) Generate Leads/Sell(Lead Conversion) Cross-sell/Retain(Client Fulfillment) • Customer Protection Review Process(Select 1 from options below) • - Tracie Bibb CPR Process • - David Harrington CPR Process • - Discovery Process • Phil Sperber Lead Follow-up w/Telemarketing Process • Quote/Requote Process • Steve Walsh Auto Selling System • Brand My Agency • (Select 1 from options below) • 2. Obtain Targeted Leads Core • Networking/Centers of Influence • Advertising Your Agency • Community Involvement • Random Acts of Kindness (RAK) • Online Marketing 1. Reach and Retain Phone Calls 2. Customer Care Center Registrations 3. Cancellation Audit • IMPACT Cross Sell Process • 3rd Party Telemarketing Supplemental Suggested “formula” for number of processes under each category based on size of book(Note: will vary based on agency capacity, # of licensed staff, marketing budget, etc.):

30. Choosing Your Tactics • Take advantage of everything FREE! • Collateral Items • TaG • $400 Credit • Direct Mail Campaigns • Quote Re-Quote • Welcome Kit • Pre-Renewal • Email campaigns • On-line Yellow Pages • Agency Web Site • Customer Care Center • Press Releases – Corporate Relations • Regional Marketing Programs

31. Choosing Your Tactics TACTICS AT A GLANCE Get your name out Generate leads/sell Cross-sell/retain Advertising Community Involvement/Public Relations Direct Marketing Online Leads Sales Support Web Support Yellow Pages

32. Implementing Your Marketing Plan? • Successful Implementation is key… • Less is more = Aim to do a few things well! • Consistency = Practice makes perfect! • Frequency & Sustainability = Keep it up! • Measure, measure, measure!

33. Measure Your Results • Is your marketing plan working? • ROI: What tools do you have to measure? • New Business Sales Log • Ask – How did you hear about my agency? • Schedule marketing checkpoints • 30-60-90 days • 6 months • Evaluate results and be willing to make adjustments to plan accordingly

34. Marketing Plan Review • Steps to building your marketing plan: 1. Set your budget 2. Determine your marketing goals 3. Choose your tactics 4. Develop your plan 5. Implement your marketing processes 6. Measure and adjust as needed

35. Summary • Capitalize on the Allstate Brand • Develop your Agency Marketing Plan • Generate Leads • Get your name out • Cross-sell/Retain • Utilize the marketing support the company provides