It seems they’re everywhere – the GEICO Gecko and Flo, the Progressive sales lady. And while some find them irritating, even aggravating, there’s no denying their impact. CNN Money reports that GEICO added 700,000 new policies last year; the insurer’s website reports that its policy base reached a total of 11 million this spring. As the U.S. economy slowly adds insurable risks, the gecko is doing his job winning consumers.
Flo the Progressive lady is earning her share of business as well. After sales dipped in 2008, Progressive used Flo to aggressively promote its direct sales website to television viewers. It’s now one of the Internet’s most popular insurance sites. Company sales grew by 3% in 2009 and 2010, expanding by 3.6% in 2011.
Why Flo and the Gecko Sell Insurance
The challenge with selling automobile insurance is that state-regulated policies are a commodity. There are not a lot of coverage distinctions to highlight. Therefore, key differentiators include company strength, service and price. Carriers like Amica (as The Allied Group’s marketing and design staff well knows) can accentuate all three. GEICO and Progressive have chosen to focus on price, a winning strategy in a struggling economy.