In my last blog, I examined the new ways that old brands sought to connect with theircustomers, especially Millennials. I was especially annoyed by JCPenney's attempts to revamp its stodgy image by running edgy newads and redesigning stores to include coffee, juice bars and yogastations.

That was before I heard about State Farm and its Next Door pilotproject.

Last August, State Farm quietly opened a storefront in Chicago'strendy Lincoln Park. There's nothing about the location to suggestinsurance; a peek inside reveals a coffee bar, comfy furniture andyoung coffee drinkers working on their laptops, just like anyStarbucks.

But beneath the surface, Next Door is more than a bunch ofbaristas. Drop by the webpage and you won't find a lot of overt referencesto insurance. Tabs highlight “coaching,” “classes” and“community,” and the gallery section urges visitors to “snag aseat,” to “connect and chillax.”

Dig deeper and you'll see that the location offers meeting spacefor people in the neighborhood, as well as free financial educationclasses on subjects as diverse as writing a business plan,burglar-proofing an apartment or doing taxes.

What's the thinking behind this? I spoke with Brett Myers, NextDoor's program director, who discussed what's behindthis ”experiment.”

Brett made it clear that in its brief year, Next Door isemphatically not a sales location. Although the people who moderatethe classes are trained financial coaches, they're not thereto sell insurance, but to have conversations, in groups or one onone, with young buyers on what they need and want.

It's all about education, both for the Millennials and for StateFarm. “This is a market that needs financial literacy and thatstruggles with some of the existing mediums to do that,” he said.“We created Next Door as a way for us to understand the consumerrather than to sell. It's a learning lab for us to find out how toaddress Gen Y consumers.”

Most of the people who use Next Door hear about it becausethey live in the neighborhood. And the neighborhood drives whatNext Door does. Besides the State Farm-scheduled financialworkshops, a recent event hosted volunteers collecting backpacksand school supplies for a local high school. Other events include a“business in the city” small-business mentoring program, a healthyeating presentation, and yes, yoga classes — “all driven by theuser base in the community,” Brett said.

The location is so robust that it hosts 20 events in a slowmonth, 35 if things are hopping, he added.

When I asked him if all this community engagement translatedinto something as prosaic as insurance leads or sales, Brettsaid if someone taking a class or seeking financial advicespecifically asked about buying insurance, yes, they would steerhim or her to a local State Farm agent.

So far, State Farm agents are “generally positive” about theproject, Brett said. He meets regularly with agent groups and themessage he conveys is that Next Door reinforces person-to-personinteraction for a demographic that primarily engages viatechnolocy. “Next Door is proving that even with the youngergeneration, people want to talk to a person or connect withtheir peers in person,” he said. “There's a time, place andreason for a physical location and a person to help with certainthings.”

In spite of what looks like success, State Farm is in no hurryto roll out the Next Door concept to other cities, Brett said.“Even though we've had a good first year, like any business, we'restill trying to figure out how it works,” he said.