Geico created the talking gecko and caveman series.  At Progressive Insurance, Flo helps you pick your coverage.   And, of course, “Like a Good Neighbor, State Farm is there.”   In a very competitive insurance industry, branding is critical.  The large insurance companies spend billions of dollars in advertising every year doing so. 

Allstate Insurance has a new commercial that caught my attention – “Breaking up is hard to do.”  Allstate tells potential customers, that if they decide to switch insurance companies that they will break the news to your old insurance company or agent so you don’t have too.  Sounds convenient, right?  Well, it’s a great marketing tactic.    

Allstate saw a challenge.  How do we ease the fears of people who are afraid to cancel their old insurance plan because they didn’t want to confront their insurance agent?  The solution – Allstate will do it for you. 

I also see another angle to this marketing campaign.  Allstate spends marketing dollars to get people to switch to their insurance coverage, but when the customer calls their old company to cancel, the old company has a chance to meet or beat their rates.  They get a chance to keep their customers from switching.  When Allstate makes the call, the old insurance company doesn’t have the opportunity to offer those incentives to the customer.   Sneaky – yes – but a great marketing strategy to overcome the obstacles Allstate is facing in their competitive industry.   

It’s important to understand any obstacles that keep customers from doing business with you.  Then, adapt a marketing plan that addresses those challenges and eases the fears of potential customers. 

Article by Jennifer Sanderson

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