STATE FARM: BECOMING THE "FACE" OF AUTO INSURANCE

Morning friends!Last week, 8 people replied to my Sunday email inquiring about how they could integrate growth loops into their business. I had a world of a time going back and forth with them and seeing how I could help. So I wanted to take a second to say... if you ever have questions or want specific tips. Just reply to the email - I promise I'll reply :)Now back to the regular programming...When it comes to branding, it's not easy to make your brand "cool" to everyone. The likes of Nike and Apple have it nailed down. Everyone knows them, everyone loves them. But for other industries, it's not quite as easy. Loan shark? Tough to brand.Big pharma company? Tough to brand.Insurance company? Tough to brand.

It's been an age-old struggle for companies in these industries. One company who broke that mould? State Farm.They're the biggest auto insurance company in the US. After reading this you probably won't be surprised.

Was this email forwarded to you?

Company Overview

Valuation: $143.2 billion (Source)

Revenue: $327 million (Source)

State Farm is an American insurance company that specializes in property, casualty and auto insurance. They aren't just any insurance company though, they are the largest U.S. insurance company in all 3 of those sectors: property, casualty and insurance. They are also ranked 42 in the Fortune 500.

To put it simply, they're big dogs. And if they have one person to thank for them becoming such a "big dog"...It isn't their founder.It isn't their CEO.It's a man named Jake.And here's why...

Breaking Down The Strategy

To really understand the value "Jake" has brought to State Farm you really have to understand the huge problem they were facing prior.

Which starts with a question: Do you really trust any insurance companies?The answer for 99% of you will be no. They just seem dodgy, right? The same goes for big banks, loan sharks, big pharmaceutical companies, the list goes on. Trust is just not something we associate with those industries. State Farm had that exact problem, just like the rest of the industry... no one trusted them.So they made a huge decision to completely pivot their marketing strategy. With this man at the forefront of it all:

Meet "Jake from State Farm". The face of a $143 billion-dollar company. Yep, State Farm's saving joy was this man right here, decked out in all the employee gear. But before we dive deeply into why in the world State Farm made this man the face of their brand; let me give you a quick rundown of how they made the pivot.

The first thing they did was create the character - AKA the positioning phase. Arguably the most important part of the strategy (which they actually got wrong at first).The original Jake from State Farm was created back in 2011, with Jake looking like this...

To me, that's a middle-aged white man who looks a little bit like a sleazy insurance salesman. So, although they nailed the exact stereotype of people working at State Farm, they DID NOT nail a character that people would trust. Years later they had another go and created today's Jake from State Farm...

Major difference.

Today's Jake is young, smiley, in shape, and looking smart. It's a completely different vibe (great marketing terminology from me) given off than the original. He comes across as that over-friendly neighbour who you let watch your dog for the weekend. Not the moody middle-aged man who shouts at kids to stay away from his freshly cut grass.Step 1 was building the character and State Farm nailed that.Step 2 was amplifying the brand character to the world, and to say they went all-in is an understatement.

They had:- Jake from State Farm TV commercials

- Jake from State Farm social media channels 

They even had a Jake from State Farm Super Bowl commercial that featured Drake:

They plastered Jake anywhere and everywhere they could. They wanted everyone to hear about him and most of all remember the name.

I know what you are thinking. 1. "Are they crazy???"2. "Did this actually work out for them?"

You already know I brought the stats too:- Jake from State Farm has 610K followers across socials (compared to official State Farm's 200K)

- Ad with Drake had 332,636 views on YouTube

- More than 80% of people who are aware of him find him appealing (Source)

Can we talk about that first stat for a second? Their brand character has 3X the social presence the actual brand has?!?!?! Tell me that isn't absolutely gobsmacking! That alone should be enough to convince you to consider a similar strategy.

Let's rewind for a second though, besides the obvious benefits online why in the world would State Farm put so much money and effort into creating a brand character?There are a couple of reasons...It gave them an identity

The likes of Nike and Apple are set. Their logos will go down in history, every man and their dog knows them. State Farm on the other hand, well they might as well be under Harry Potter's invisibility cloak. I couldn't tell you what their logo looked like and I've just spent the last 3 hours researching them. With Jake, none of that matters, he is the brand and he gives them that identity.Easy to rememberLet's be honest, there are a million and one insurance companies. If I asked you what company you had your car, home, and health insurance with you'd probably have to go check. That's because the majority don't have memorable brands behind them. Having a brand character made State Farm instantly memorable. Makes them human

The insurance world is all cloak and daggers. Have you read the small print? Am I getting scammed? State Farm has a big smiley man called Jake break through that lack of trust. At the end of the day, all roads lead back to that one word - TRUST. That's why Jake from State Farm exists. That is why State Farm have put so much time and effort into building and marketing the character.

Now, I'm not saying that Jake made State Farm America's biggest auto insurance company. But what I am saying, is that America's biggest auto insurance company has a brand character.

Coincidence? I don't think so!

How To Implement It

There are two ways you can implement this strategy into your business:1. Create a brand character 2. Make an employee the face of the brand The first one is a little more complicated than the second. Simply, because it can be tough to create a character that fits perfectly with your brand. Not to mention you will have to pay a hefty fee to an actor who has to constantly appear in all your branding. Take State Farm, think about how much leverage the "Jake" actor has now. The guy is literally plastered across all their marketing channels. It's an option, but it's not a realistic method for 99% of brands.Option 2 on the other hand is something I'd heavily recommend. I've helped 40+ companies do exactly this over the last few years and the process is much more simple than you might think. Here's are the 3 P's you need to think about to get you started:- Positioning: How do you want people to see and perceive you?- Pillars: What do you want to be known for? What do you want to talk about? (Note: You don't want to be a jack of all trades, you want to be a master of 1)

- Platforms: Where do you want people to find you? I'm all for diversification. But you're not going to nail all platforms from the off. Start with 1 or 2 (preferably one), once you've nailed that, leverage your audience on the first platform to build on a new one.

Don't get me wrong, building a solid personal brand is not easy. But when done right it is a HUGE asset for any brand.

Struggling to recruit high-quality talent? Personal branding will help.Struggling to attract clients? Personal branding will help.Struggling to raise investment? Personal branding will help.We've seen it time and time again, just think of some of these people that have now become household names:Steven Bartlett -> Social ChainCarrie Rose -> Rise at SevenAmelia Sordell -> Klowt

Just like Jake from State Farm allows people to connect with State Farm, adding a face to your company brand will do the exact same!People buy people, add a face and just watch the difference it makes!

That's all for today!

Want specific tips? Reply to this email - I promise I'll reply :)

What did you think of this week's breakdown?

I can't build the biggest marketing newsletter in the world without feedback.

Click on a link to vote:

• 👍 Loved it - are you Einstein?

• 😐 Meh - work harder Niall

• 👎 Boooo - wasted 3 mins of my life

This has been a breakdown of State Farm's marketing strategy. I hope you have learned something and can implement a similar strategy in your business!

Don’t forget to subscribe to get next week’s breakdown straight to your inbox!