Comments on: For Auto Insurers, is Retention Taking a Back Seat?

By: Tom Rapsas

Tom Rapsas — Wed, 17 Jun 2009 15:19:35 +0000

Hi Stephanie!, Hello Ron,
I think you both raise excellent examples of auto insurers who are taking real steps to differentiate themselves from the competition. (I will definitely be checking out USAA.) I limited by initial research to the “big guys” and as a rule I found they come up short when it comes to connecting and engaging with customers. For smaller competitors, I think this is good news–it gives them a real opening when the day comes (and it will come) when the customer is not only concerned about who has the lowest price, but starts looking at who can also offer the best service, relevant information and honest advice.

By: Lisa Stephens

Lisa Stephens — Tue, 16 Jun 2009 16:14:40 +0000

Well, I’m sure my view is not a popular one, but from where I sit, insurers don’t market. They have no need. Their scheme is to play on fear within our society. “Should the worst occur, you will have financial solvency…”; if nothing else. My view, is that in our society we ‘own,’ we ‘have,’ we ‘acquire,’ more and more ‘things’ which we then have need to ‘protect’ from loss. God forbid, that we should only have ourselves, our personal integrity, to keep us secure.

The insurance industry is just that, its wealth is ‘generated’ and is a self-fulfilling prophecy.

My philosophy, and the lesson I attempt to teach my children, if no one else, is that ‘things’ just don’t matter that much, but people do. Your money, or the money you leave, should the ‘worst’ case scenario present itself, shouldn’t be your legacy.

By: Ron Stack

Ron Stack — Tue, 16 Jun 2009 14:25:15 +0000

I’m not a customer, but it appears that Nationwide has a chance to build loyalty through stickiness. Their new iPhone app, which includes tools for filing an accident claim more or less on the spot, seems relevant and helpful, and positions the company as both forward-thinking and customer-centric. Sounds like a good use of the technology.

By: Stephanie Scuderi

Stephanie Scuderi — Tue, 16 Jun 2009 04:45:27 +0000

Loyalty to an insurer of any kind implies “trust you with my life…trust you with my child’s life.”

I am a USAA-evangelist. Why? Service begets trust.

Over the last 20 years, I’ve come to entrust USAA implicitly with my family, my home, my car, my jewelry. Service. No matter who I call, when I call, or what number I call into USAA, the person who picks up the phone can help me, can connect me to more help, and I NEVER feel like I’m talking to someone who is unfamiliar with my accounts.

Loyalty to auto-insurers? USAA wrote the book. I started as a 15 year old driver – YIKES! – insured with USAA — my father was in the Navy, so that was my foot in the door. I’ve never had another insurer, and now USAA is also my bank (even though I work for a different bank), and I also have my investments through USAA. When it came time to insure my home, USAA does that, at every angle, as well as property. I’ve used their financial planning services, and will be purchasing life insurance in the near future from them, as well. Not the low cost provider, but a premium I am happy to pay because I know without a doubt the service I receive is bar none.

Its not about points — this kind of loyalty is not begotten by points, trips, watches, or freebies. I’m not caught up in some points earn velocity momentum that smooths over bad experiences. It’s not even because of the annual dividend I receive simply because I’m a customer/member.

I love USAA simply because they know me. They make it easy to work with them. USAA is unlike any other company I have ever encountered.

They have data on their side. In graduate school, I was able to woo one of their database execs to speak to our class. Sophistication in their analysis and data structure? WOW! This is exemplified in the fact I have never received a piece of mail from USAA that hasn’t led me to act. No junk mail because their messaging is 100% relevant due to their advanced data capabilities and applications.

While it started with my Jeep Cherokee insurance back in college, my relationship with USAA is now so much more far-reaching and deeply rooted – I can’t imagine working with any other institution for insurance (or banking, or investments, or planning.)