MONY still reaping rewards from mid-'90s African-American marketing initiative

Clients for life

The MONY Group Inc. is the holding company for the member companies of The MONY Group, which provide financial protection and asset accumulation products and services. Its principal subsidiary, MONY Life Insurance Company, a stock life insurer founded in 1842 as the Mutual Life Insurance Company of New York, issued the first mutual life insurance policy in the United States in 1843.

To truly serve customers, you must know their needs, wants and desires, and address them above and beyond customers' expectations. This approach will lead to "clients for life."

In the mid-'90s, MONY began to extend this approach to various ethnic groups. After successfully reaching the Asian-American market, the company began an initiative aimed at the African-American market, including a two-pronged effort to recruit and hire more African-American agents and also to increase awareness of MONY among targeted groups in the African-American market.

"We looked at the data, and saw, for example, that over two million African-American adults lived in affluent households and 27 percent of the affluent households had incomes over $75,000," says Walter Bell, vice president, diversity, at The MONY Group. "That was a market that we had not penetrated. Further, we saw that African-Americans invested in savings accounts, CDs and real estate, and that meant there was a market for investments that provide excellent returns and diversification."

As it has entered different ethnic markets, the target markets have stayed the same, Bell says. "We are a very niche focused firm and we felt that we would not go outside of MONY's target groups for any initiative. We did not try to go after the entire marketplace or create new products specifically for those new markets."

In keeping with its Plan 90's marketing initiative - which targeted small-business owners and high net-worth individuals, pre-retirees and retirees - MONY sought to reach consumers in these same categories in the African-American market.

MONY began researching and assessing the financial needs of these consumer groups in October 1994 and implemented the marketing initiative in 1996.

MONY used a total quality management process which included the establishment and involvement of a cross-functional team of representatives from the field, management, home office sites, human resources and the firm's quality office (which managed the TQM initiative).

The team developed mission and vision statements. The mission statement: develop a comprehensive marketing plan to recruit and retain African-American field underwriters and increase MONY's presence in African-American Plan 90's markets. The vision statement: position MONY as the company of choice for African-American employees, field associates and clients by cultivating an environment that values diversity.

Assess markets, establish benchmarks

MONY undertook a market research program including gathering internal data, competitive data and national data from various primary and secondary sources to assess its target markets and establish benchmarks.

Some key findings:

• African-Americans' total income increased 600 percent between 1970 and 1994 (for a total household purchasing power of $278 billion).
• The number of businesses owned by African-Americans increased 37.6 percent over a five-year period.
• Thirty-eight MONY agencies were located in the top 10 states with the largest African-American population.
• Affluent African-Americans will respond to companies that affirm both their social status and heritage.
• African-Americans have strong affiliations with social organizations.
• African-American wealth is generally earned rather than inherited.

"For those within MONY who had little exposure to the African-American culture and market, our research provided the facts and strategy needed to support this initiative," Bell says.

Additional research showed potential clients felt they could more easily approach a member of their own ethnic group with questions and concerns about life insurance. Respondents said they felt that agents in their ethnic group were able to identify with the different needs and desires of ethnic communities and establish a comfort level with them.

Focus groups were conducted with African-American MONY employees to see how they, as financial services consumers, saw the company and its efforts to market to them. Employees had positive feelings toward the company but felt that MONY hadn't done an effective job of making sales calls on them.

Made an investment

On the strength of the research, MONY made an investment of personnel, operating expenses, sponsorship funds, and more. At the beginning of the initiative in 1996, Bell, then a successful MONY agent, was named national director of emerging markets and head of the African-American initiative.

As first steps to establishing credibility and confidence in the marketplace, MONY sought to build strong relationships with African-American communities.

One goal for recruiting efforts was to enhance existing relationships and/or establish a major presence with six specific African-American and related organizations (including involvement with the National Black MBA Association, The College Fund/UNCF and the Urban League).

MONY began a recruitment effort to expand its African-American field agent roster and added seven African-American assistant managing directors in its field agencies.

Concurrent with recruitment efforts was strategic involvement in local community activities and national organizations. The MONY Foundation Field Grants program, which focuses on "Meeting the Essential Needs of Minority Children," provided the vehicle for giving financial support to the African-American community and actively establishing MONY agents within various children's aid agencies as volunteers and fund-raisers.

"We've tried to build a marketing program that would affirm the social status and heritage of African-American employees by working with many different organizations that are predominantly African-American," Bell says.

The success of the initiative was evident in 1996 results:

• MONY exceeded its goal of African-American field agent hires by 20 percent;
• nine MONY-represented cities were targeted for heightened involvement in African-American communities, which resulted in the placement of agents on the boards of organizations such as the Urban League;
• grants totaling over $80,000 were given to various organizations and agents participated in volunteer activities.

Hiring continues

MONY continues as an active partner with the National Black MBA Association, The College Fund/UNCF, and historically Black colleges and universities. These relationships have been key to the recruitment strategy and have included conference and receptions sponsorships, value-added educational workshops, and career fairs.

Today, recruitment and hiring of African-American field agents continues. Hires of African-American field agents increased 50 percent from 1996 to 1997 and 137 percent from 1997 to 1998.

"One of our goals was to mirror the community, so when you look at MONY it's a reflection of our customers and the communities we serve," Bell says.