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IN A MARKET FILLED WITH AGGRESSIVE COMPETITORS, Farmers Insurance Group needed a way to not only retain their customers, but to educate them on new products and services as well. To add to the dilemma, they wanted to differentiate between their insurance and financial solutions, all while staying brand consistent. So Farmers decided to partner with their agents — through channel marketing.
Building on the brand together
Fifteen years ago, Farmers began working with First Marketing on a channel marketing strategy for their insurance agents. Together they created a custom quarterly newsletter program, The Friendly Review, to develop synergy between company and agent marketing efforts. Eventually, Farmers expanded with a new investment division, Farmers Financial Solutions. Farmers had to support newly registered agents’ efforts to promote and sell financial products — without competing with its own insurance offerings. In 2002, Your Financial Solutions launched to an enthusiastic agent reception. The quarterly newsletter built upon the existing bonds between agents and customers to expand awareness of a new suite of services. Now agents had two strong communication tools to engage customers and address their insurance and financial needs specifically. Each publication is consistent with the Farmers brand, yet allows the agents or registered representatives to personalize them with their name, photograph and signature. By leveraging this twofold strategy, Farmers is establishing strong relationships between agents and their customers. |
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Creating agent support
In order for these programs to be successful, Farmers needed agent participation. So agents pay for the newsletters themselves, ensuring that those who sign up for the programs do use them. But to get the agents excited, Farmers began promoting the benefits of the programs with an ongoing recruitment campaign. As a result, between both programs, more than 3,000 agents have signed on. For those who do participate, an annual survey is conducted so agents can provide feedback and influence changes. The programs’ evolution has included versions of The Friendly Review for Spanish speakers and independent distributors, and additional financial services communications like postcards, brochures and customer welcome letters.
Continuing the success
More and more agents are getting involved, which is good for Farmers and the customer. In fact, the customer retention rate averages 3 percent higher for agents who participate compared to those who don’t. This adds up to millions of dollars every year. Registered agents who send Your Financial Solutions average 66 percent higher assets under management.
Through a channel marketing strategy, Farmers corporate and the agents are able to achieve their shared goal of stronger customer relationships. |
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#1-Farmers, #2-Radisson |
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