Friday, August 8, 2008

Customer Centricity: A Case Study

While many companies continue to follow the product centric ‘Make it and they will come’ philosophy, other companies have turned the corner on customer centric business practices. One company that seems to get the concept of customer centricity is Progressive Insurance. A sampling of their recent television ads demonstrates how Progressive.com is standing out in the historically stodgy insurance industry.

Now I’ll admit, I’ve never been a fan of the insurance industry; I harbor anxieties that are perhaps common among insurance customers:
  1. I fear that although I have insurance, I won’t be compensated for potential losses. “I’m sorry sir, but your policy doesn’t cover locust attacks.”
  2. I fear that I’m paying too much for my insurance, because I don’t continually monitor competing rates. “Why yes sir, your insurance rates have gone up each year even though you’ve never filed a claim.”
  3. I fear that if I ever need to file a claim that it will be an extremely painful process – which could take months or years to bring to closure. “Thanks for calling. We are experiencing extremely high call volumes. Please hold, you are currently 3,423 in line…”
Progressive.com’s customer-centric approach focuses on addressing these typical customer anxieties front and center. They focus on saving their customers money and providing outstanding customer service. Their marketing approach is an excellent example of how companies are turning the corner on customer centric business strategies.

Progressive’s recent marketing efforts offers several lessons for companies that are seeking to turn the corner with their customer centric business strategies:

Customer-Centric Lesson #1: Be clear about your brand promise.

Everything that Progressive does in the marketplace reinforces their brand promise of customer centricity. Even the company tag line clearly states their focus on the customer: “It’s about you. And it’s about time.®”
Specifically, Progressive’s brand promise is to deliver more value and better customer service than its competitors and is demonstrated in one of their latest television ads:



Customer-Centric Lesson #2: Address your customer’s biggest concerns.

Getting insurance won’t make anyone cool, sexy, or popular, but it will bail you out if – or when – you need it. Without question, the number one concern for any insurance customer is to get the best value for their insurance dollar.

Progressive made waves several years ago with their innovative willingness to compare their insurance rates to key competitors on their website – a feature that they still boast today. This competitive rate approach sends a clear message that Progressive is more interested in saving the customer money than simply selling insurance coverage.

Check out one of Progressive’s televisions ads to see this brand promise in action:



Customer Centric Lesson #3: Differentiate with customer service.

As any home or automobile owner can attest, they often don’t think or worry about their insurance until they actually need it. Filing a claim or getting assistance should be easy, efficient, and straightforward and Progressive reinforces this brand promise in another of their latest television ads:



Perhaps other companies can learn a lesson or two from Progressive.com. Their brand promise clearly focuses on the customer, they address many of their customers biggest issues and concerns, and they focus on delivering great customer service.

Note: I am not a Progressive customer, nor am I associated with Progressive.com any way.

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