Staying ahead in a competitive marketplace is a constant exercise in push and pull, dos and don’ts, and lucky breaks. Taking the lead in the increasingly online world of business in 2014 means taking advantage of evolving SEO, great web design, and success in social media. After all, eCommerce sales grew to $262.3 billion in the United States, and are expected to grow to $440 billion by the end of 2017.
Having said that, web-marketing isn’t the only thing to consider. Harnessing the power of brand recognition and utilizing the mobile market is equally important to keeping your company at the front of potential and actual customers’ minds. This is a lesson that American insurance giant State Farm took to heart. After 91 years of offering a high quality insurance option to Americans, State Farm is still the most profitable insurance company in the country, pulling in an estimated $3.2 billion in profits annually. Its closest competition, Allstate, only earns around $2.3 billion. By realizing the need to change and grow as the nature of business does the same, State Farm has ensured its success into the future.
What Did State Farm Do?
1. Updated Their Classic Logo
One of the smartest things State Farm did for their brand was updating their logo. The company’s original logo, in use since 1953, was recognizable, but it didn’t quite fit with the digital direction business marketing is heading. In 2011, the company reduced the size of their well-known ovals, placing them next to the State Farm name, resulting in a streamlined, modern look. For their online presence, they now use only the three ovals as their emblem.
It might not seem like this is a big fix, but consider this: people remember visual information a lot more readily than they do written information. That’s why a brand’s logo, the bit of information customers are most likely to remember, is said to be the face of a company; it represents everything your customers can expect from your business in a memorable, condensed form.
2. Harnessed the Power of Celebrity
Recognizing the need to fight back against the steady stream of quirky, strange, but effective ads being put out by competitor Geico, State Farm contracted Green Bay Packers quarterback Aaron Rodgers, hoping to harness the power of celebrity to bring their company added recognition. The Discount Double Check program, the campaign Rodgers helms, is memorable for the potential 40% savings customers can gain by using it, but it’s unarguably Rodgers’ presence that makes the campaign successful.
Of course, banking on star power for increased recognition and sales is not a new concept. Activia Yogurt brought in actress Jamie Lee Curtis to pitch their female-focused yogurt and subsequently saw sales increase by 80%. Even when marketing isn’t the goal, sales increase with the power of celebrity. For instance, after President Obama was recorded singing Al Green’s “Let’s Stay Together” in 2012, sales of the song jumped by 490%.
3. Optimized for the Mobile Market
All estimates show that 2014 is the year mobile internet usage will finally overtake traditional desktop usage. 63% of mobile users use their devices to go online, with nearly a quarter saying they access the internet exclusively from their phones. Additionally, 29% of Americans say they cannot live without their phone, meaning they play with their mobile apps and check their devices for text messages and social media updates constantly.
Hoping to take advantage of the geometric growth of the mobile market, State Farm released a series of mobile apps to make it easier for customers to take care of their insurance needs and to make tracking their driving ability more interesting. The Pocket Agent® app, for example, lets customers file a claim, make deposits in their bank accounts, and find an insurance agent on the go. Other tools tell drivers how safe they are driving and what they need to do to earn certain insurance discounts. All of this ensures State Farm is increasingly part of the growing mobile market.
State Farm is proof that dynamism in business is as important as any product or service offered. By modernizing a familiar logo, fighting fire with fire by producing memorable, celebrity-filled commercials, and realizing the need to tap into the mobile market, State Farm has cemented their dominance in the insurance world. Using the same methods, you can do the same for your business, whatever your field.
Velocity Agency is a digital marketing and advertising firm specializing in digital and internet marketing & advertising, print, web design, graphic design, film, and HD video promotion and post-production. Velocity serves clients all over the United States from our Metairie, LA office just outside of New Orleans by strategically implementing proprietary tools and techniques to get you the most conversions for your business through lead generation, cost-per-acquisition, and top line revenue.