The Progressive Corporation: Insurance Superstore

Arnold

ENTRY INFORMATION

Category: Insurance
Country where program ran: USA
Date program started/ended: 21st January 2008 - Present

Product Description: Progressive Insurance is the 4th largest auto insurance company in the US with over 10 million customer policies. They cover a wide array of vehicles including: cars, trucks, motorcycles, boats, RVs and commercial coverage for business owners. Polices are sold via the web, over the phone or through independent agents.

Advertiser/Client Name: The Progressive Corporation
Media Channels: TV/Video/Radio

STRATEGY

Marketplace Challenge:

Most consumers' best case scenario about auto insurance is that it's a product you never have to use. In most states it's mandatory for consumers to have it and the product offering and pricing are heavily regulated. The competition is intense with the top 5 brands spending over a billion dollars a year in advertising. So in addition to the consumer disinterest and differentiation challenges, Progressive also has very noisy neighbors. Given the inherent consumer disinterest in the category being top of mind is critical. Most consumers simply renew their policies. For those who do think about switching, it's something that at best they do once every two years and takes all of 30 minutes. The window of opportunity for a brand to deliver its message and have it stick is incredibly small. From a positioning standpoint, the category had polarized itself into brands that either built trusting relationships and offered quality service at a higher cost, or transactional brands that offer easy solutions to save money. In addition to both of these positions being well defended, Progressive had an additional challenge. The earlier success of their comparative rates tool which had been the backbone of their marketing effort for almost a decade had pigeonholed them into the perception of being an aggregator website vs. a legitimate insurance company. And as brands began to add comparative pricing to their websites (both inside and outside the auto insurance category), the tool became less of a differentiator for Progressive. Given the erratic nature of Progressive's past marketing efforts we knew we would be held to two key measures. With in roots as a direct marketer we knew our first priority was to develop an idea that drove the business every day. The second challenge was for that same idea to leverage the spirit of the company in a way that made them more relevant and different from the rest of the category. In short our challenge was to define Progressive as the better way.