Expert advice from G. David Shows D.B.A., a Professor of Marketing and Director of Professional Education at Appalachian State University, was featured in a recent WalletHub review of Nationwide Insurance.
Here's what Shows had to say:
How valuable would you say the “Nationwide is on your side” jingle has been for Nationwide?
The phrase “Nationwide is on your side” is not only a jingle, but also a brand mantra and a heuristic, a mental “rule of thumb,” used to help make complex decisions. A brand mantra is a short statement that expresses the promise of a brand to its customers and represents the essence of what the company provides. Delivered in the form of a jingle, it makes it more memorable and more meaningful. Jingles, or music, are stored in an area of the brain separate from other memories and span across the human brain. The jingle itself, “Nationwide is on your side,” equates an empathy not generally associated with insurance and financial services corporations. The promise implies that Nationwide is more than an associate in your financial planning, but a “friend,” on your side of every argument. Insurance and financial planning are subjects that require trust from consumers. The implication is that Nationwide will stand for the customer’s interests first. The value speaks for itself. As of 2023, Nationwide had revenue of approximately $32.5 billion and is ranked as the fifth insurance company in the Fortune 500. While these rankings speak to the value in dollars and cents, to maintain the jingle, Nationwide must sincerely continue to be “on your side” to maintain the integrity of the brand. Reviews in WalletHub show mixed satisfaction among consumers with a 3.3 rating on a 5-point scale. The ability to deliver on the brand promise will determine the overall success.With more people buying insurance online, do you think Nationwide will move toward having fewer local agents available, even for existing customers?
The purchasing and delivery of insurance online is one facet of the enormous opening of a new marketing channel in which to serve consumers. The Omni-Channel is the pipeline that puts the consumer in charge of all channel functions, from information exchange to product to payment. For the market segment of consumers who enjoy the benefits of online exchange, selling insurance online is the best acceptable way for them to manage their insurance and financial needs. The online consumer highly desires the service outputs of convenience. They tend to be shoppers of services, using online tools to compare across multiple brands in categories and use their own heuristics when it comes to deciding on financial coverage. However, there are also those consumers who desire greater personal interaction when dealing with those needs. There are consumers who desire the trust of individuals and wish for human interaction when selecting their insurance needs. These are individuals who will require the face-to-face work that insurance companies have performed from the beginning. As consumers age, however, the number of these individuals may potentially diminish. Nationwide’s marketing should perform research (and probably has) on defining these two market segments and determine the total business performed in both segments. They should periodically update these numbers and continually refine the definition of the segments. It is important to determine if Nationwide’s existing customer base is moving online or if their numbers are steady and their online customer base is increasing. If there is significant movement from traditional channels to online, then Nationwide should determine the services each customer base desires and provide those services through both channels. Even if there is significant movement from face-to-face to online, Nationwide should study and determine the optimum number of agents and the most desired services to service the traditional channels and make those agents available. Why? Because “Nationwide is on your side.” The value of the brand mantra is determined by the fulfillment of the brand promise. If Nationwide is truly on your side, and you are a consumer who desires human interaction and is purchased on the promise, then you need to deliver to bring value to the brand. The question, however, is whether Nationwide will move toward fewer local agents. My answer is yes, but it must be a decision based on the research and not abandon existing customers to fewer agents if the data does not support it.
Read the full post at https://wallethub.com/edu/ci/nationwide-car-insurance-review/62589.
About the Department of Marketing and Supply Chain Management
At Appalachian State University, students in the Walker College of Business Department of Marketing and Supply Chain Management learn to drive industry initiatives that develop customer satisfaction and retention, contribute to company profits, and build connections with suppliers, distributors, and the community. Students majoring in marketing may select a concentration in general marketing, digital marketing or sales. Students majoring in supply chain management (SCM) learn about logistics, operations, strategic sourcing, process improvement strategies, and supply chain technologies, enabling them to compete in the global marketplace and help future employers reduce costs, improve profits, and expand their markets. Learn more at https://marketing.appstate.edu.
Marketing professor contributes to Nationwide Insurance review
David Shows