State Farm: How to be Famous with Influencer Marketing
How do you build a strong brand identity?
Do you know the name of the insurance company that covers your cars? Well, some of you might say yes, others will frown. This is precisely what State Farm, one of the largest auto insurance companies in the US, is facing right now. As a matter of fact, a lot of their clients, which include car owners in US from all generations, do not know of their existences at all. Sure they know their cars are insured, but they have no clue of the name of the insurance company that covered them.
So, what should State Farm do to pass this crisis? Well, the answer might be closer to home than you think.
State Farm: Brief Introduction
Well, we have to admit. When we typed in Google search query “Top Auto Insurance Company” and saw “State Farm” logo plastered all over the result page, we are as baffled as you are. We can’t help but wonder, what is State Farm? How big is this company? Why on earth haven’t we heard about it before?
A quick search on Google told us that State Farm has been around for over 96 years already with more than 19,000 agents all over US. The company is owned by its policy holders and possesses 18% of the total available market share, which puts State Farm as the largest auto insurance company in the US right now. So why on earth, are US citizens not aware of their brands?
Well, obviously this is the matter of marketing strategy. Over years, State Farm has sponsored some of the biggest athletic events in the US, as proved from its logo plastered all over NBA matches. Not only that, State Farm has also launched quite a few humorous commercials and was even mentioned in podcasts. The company seems to have done all the ‘appropriate’ marketing strategies, so why are they still unknown among their own clients, especially the millennial?
Simply put, the main problem of State Farm is the lack of awareness over their brand presence. And what’s the best marketing tool that we have right now to solve this dilemma? You know the answer to that question.
Influencer Marketing (Again)
The power of social media is no longer to be taken granted for. Influencers are getting more powerful today as the market matures. Influencer marketing has expanded its contribution to numerous industries from retails, commerce, fashion, tourism, fitness even finance, so why not insurance company too?
Obviously there are a lot of social media channels out there, each targeted specific audiences with different backgrounds and interest. So, what do you think the best social media platforms to apply influencer marketing for insurance company?
Podcast
If 2018 is the year of video, you can bet that the year of 2019 goes to audio. From smart speakers to connected cars, the audio content sphere is booming. Rising over the past decade, podcasts are most certainly at the helm of audio’s resurgence. There is no doubt that more people are listening to podcasts now, as it has been walking on a steady increase since 2006. According to statistics from Forbes, brands are predicted to double the spending on podcast advertisement with people at the age of 18–34 make up over 44% of podcast audiences. Today, as we are in the middle of yet another technology transition, podcasts can easily become an explosive trend for the future of marketing.
So what makes podcast suitable platform for State Farm? Well for one, podcast is extremely efficient for consumer segmentation. Podcast classifies its listeners to different groups so sponsors could choose the one they think suitable for brand endorsement. Take one of our favorite pod-casters Conan from “Conan O’Brien Needs a Friend” as an example. He has received a lot of endorsement from various brands over the course of his podcasts. He has promoted a wide range of brands from fishing products, curtains, even email service.
So through podcast, State Farm can sell their brands to the specific target audiences. Remember that podcasts are popular among 18–34 years old people? And who are the owners of cars? Yes, you got it right. With this strategy, State Farm can collaborate with pod-casters to spread awareness of their brands to the ‘right’ target audiences. Moreover, the content of pod-casters is usually quite specific and personal. State Farm can leverage this feature to further enhance their content to resonate well to the lives of their consumers and prospective consumers.
Tell us honestly, will you expect to see an insurance ad on Instagram? Yes, we can see you’re shaking your heads now. But, think again, why not? Wouldn’t the fitness-enthusiasts on Instagram love the idea of having a health insurance? Don’t the followers of travel influencers on Instagram own cars? Precisely.
One of the insurance companies that have taken Instagram as one of their social media channels in their marketing strategy is Sonnet Insurance, a Canadian company based on Toronto. State Farm could follow suit with Sonnet’s example in trying to leverage influencers on Instagram to promote their brands and services, either via the ‘obvious’ paid Instagram posts or delivering memorable experiences for the influencers. From tickets to games, trip to music festivals, or travel opportunities, these influencers will naturally share their experience with the brands on their social media channels.
At such, State Farm could encourage these influencers to speak honestly about the experiences as a way to build trusts with their prospective consumers. Another idea to leverage influencers here is for State Farm to encourage their audiences to engage in their channels. Simple question such as ‘What are the biggest risks they have ever taken?” is enough to trigger opinions and voices from KOLs and followers alike.
Every consumer has power to influencer purchases of his close circle. And at such, State Farm can expand their marketing campaign by collaborating with the audiences as well. By turning the audiences’ participation in sharing their own stories into a social media contest, for example, will allow State Farm to increase their brand awareness, drive traffic to their platforms, boost engagement, referrals and even prospective leads.
Our Thoughts on Future Opportunities
State Farm, in a way, is a great auto insurance company who wants a local agent and a personalized insurance experience thanks to the large number of their agents. However, in this digital revolution age, that is unfortunately not enough to compete with their competitors.
Having a strong brand image is extremely important and influencer marketing is definitely the most effective tool to increase awareness. Podcast and Instagram aside, we think State Farm can also utilize the power of video marketing. As most of their clients are car owners, State Farm can collaborate with influencers to shoot videos on for example, driving lessons, car customization, or even sentimental videos showing off their car collections or stories of buying their first cars and so on. Videos could potentially give State Farm an edge and a new fresh image for their existing customers and potential future customers.
Fun, easy-going, educational, well, there’s no doubt that State Farm brand will soon be on the top of public’s mind after this.
