Nationwide Recognizes Immediate Benefit
When we’re right, we’re right. And when we’re wrong, we admit it.
If you look around here just a little bit, you’ll find somebody casting doubt on the wisdom and validity of Nationwide Insurance Company’s decision to become title sponsor of NASCAR’s second tier series.
Seems we might have underestimated the power of the NASCAR connection.
Might is still the operative word … but …
NASCAR.com’s Ron Lemasters has put together a nice if slightly speculative story about the company’s early indicators that the payoffs are in store.
Nationwide’s John Aman, honcho for the sports marketing properties, addressed the media this week with an early positive message:
“Something that hasn’t happened in the other sports properties we’ve done is that I’ve received three or four e-mails just this week from agents saying, ‘I just wrote two pieces of business today because we sponsor NASCAR,’” Aman said. “The story goes something like, “so-and-so just gottheir premium renewal notice from a competitor, there was an increase, they know that we are sponsoring NASCAR now, so they called, I quoted and I now write their car, their home and their ATV. Thanks a lot, and keep it up.’
Now, a few emails from happy agents does not a multimillion dollar annual investment justify. Over the term of their sponsorship, they’ve got to have some better, tighter and more quantitative metrics than a few good stories. If they get them, we won’t hear about it; we’ll just see Nationwide renew its sponsorship agreement. If not, then … well, not.
But Aman’s comments indicate that Nationwide is tapping in to the one key component it undoubtedly needs to make this deal work: NASCAR fan loyalty.
For years, we’ve heard that NASCAR fans notoriously prefer sponsor companies over their non-sponsor competitors. And, if you think about the insurance business, it makes sense that a company like Nationwide would jump at such a proposition.
Let’s face it, insurance companies are not exactly starting from a brand-positive position. Quick, name somebody who actually likes their insurance provider. They might like their local agent, but the actual provider? Not so much.
It’s a tough business environment. And when your customers are innately predisposed to dump you if they can, the natural question becomes, “Dump you for whom?” When the “for whom” is a company that supports something they like (fiercely), said “for whom” will probably generate a little contingent loyalty.
Good for Nationwide. Looks like they figured some of this out in advance.
We stand corrected.
For now.
