Progressive Corporation is one of the largest providers of auto, motorcycle, boat, and RV insurance in the United States. Founded in 1937, the company is considered one of the most innovative insurance agencies in the industry. From the beginning, Progressive’s philosophy has been to approach auto insurance “like no other company had.”

Progressive attracts new customers through its unique product offerings and services. For example, it was the first insurance company to offer drive-thru claim service, 24-hour claim service, and reduced rates for low-risk drivers. In 1994, Progressive introduced a comparison insurance shopping service, encouraging customers to call 800-AUTO-PRO (now 800-PROGRESSIVE) and receive a Progressive quote as well as comparison quotes from three competitors. Progressive extended this service when it launched comparison-rate shopping on the internet.

Progressive was also the first insurance company to introduce the Immediate Response Vehicle (IRV), a special vehicle that brings trained claims professionals to wherever customers need them, including the scene of an accident.

Questions

1. What has Progressive done well over the years to attract new insurance customers?

2. Discuss Progressive’s direct marketing campaign, which primarily revolves around the character Flo. Why does it resonate so well with consumers?

3. What else should Progressive be doing to ensure that it remains “top of mind” in the competitive insurance industry?