This is a presentation made in an internship under Prof. Sameer Mathur, IIM Lucknow about a company called Progressive Insurance

1. “We are
and we are progressive”

2. How the company came
into existence
Joseph Lewis and Jack Green started the
company on 10th March 1937 with the aim of
providing vehicle owners with security and
protection
From the beginning, their philosophy has
been to approach auto insurance “like no
other company had”

3. the pioneers
Since its beginning, Progressive has taken innovative approach to auto
insurance as being the first ones to provide various services
 Offered drive-in claim services before any other company
 Allowed customers to pay payments in instalments
 Reduced rates for low risk drivers
 First major insurance provider with presence on internet

4. Growth
And
innovation
 In 1956, Progressive casualty Company was formed to
write auto insurance for high-risk drivers
 In 1971, Progressive had their IPO as they were
launched as public company
 In 1987, Progressive surpassed $1 billion in premiums
 In 1990, Progressive introduced Immediate Response
claims service, available 24x7
 In 1992, Progressive was recognised as the largest
auto seller of auto insurance
 In 1994, Progressive introduced 1-800-AUTO-PRO, a
cutting edge insurance rate comparison shopping
service to get a quote and compare prices with other
three competitors

5. 1-800-AUTO-PRO
The Marketing Master-stroke
When Progressive launched 1-800-AUTO-PRO (now 1-800-
PROGRESSIVE) in 1994, a service which allowed
costumers to get an immediate quote of price and compare it
with three other companies of similar mould, consumers
accepted it with open arms as it enhanced the credibility of
Progressive and took it to a whole new level
The sales of Progressive increased four times their nearest
rival in the 90s

6. Progressive’s direct
marketing

7. How Progressive mined their way to
retrieving valuable data
The company devised better ways of assessing an applicant’s risk profile to
calculate the right rate to quote.
Progressive’s computer systems automatically contact those of a credit agency,
and the applicant’s credit score is factored into its pricing calculation.
More accurate pricing translates into increased underwriting profit.
Putting these all together, Progressive’s remarkable growth became
comprehensible

8. Snapshotting their way to the top
Progressive launched a device called ‘Snapshot’ which recorded the driving
behaviours of their customers and charged accordingly. The drivers who drove
safe were charged lower while the rash ones were charged relatively higher.
This strategy worked like charm because the customers’ spending on insurance
depended more on themselves than an external entity and in the self righteous
belief of being a safe driver, many consumers clamoured towards Progressive
and shot their sales higher.
Its also helped Progressive mine data by themselves instead of relying on a
data mining service thus cutting their costs massively and also getting reliable
data.

9. Immediate Response Vehicles
Making Progressive an immediate success
Progressive gained massive foothold in the market when they launched
Immediate Response Vehicles in which a claimant can reach a Progressive
representative by phone 24 hours a day, and the representative then
schedules a time when an adjuster will inspect the vehicle.
Why it became massive success?
Instead of taking between seven and ten days for an adjuster to see the vehicle,
Progressive’s target was now just nine hours. Thus customers got service when they
needed and Progressive became the first number to dial when in need.

10. How exactly the IRVs helped Progressive
This approach has many benefits and cumulatively they massively helped
Progressive, namely
 Claimants could get faster service with less hassle, which means they’re less
likely to abandon Progressive because of an unsatisfactory claims experience
 Shortened cycle time reduced Progressive’s costs dramatically
 Improved ability to detect fraud (because it is easier to conduct an accident
investigation before skid marks wash away and witnesses leave the scene)
 Lower operating costs (because fewer people are involved in handling the
claim)
 Reduction in claim payouts (because claimants often accept less money if it’s
given sooner and with less travail)

11. Going with the Flo
Apart from pioneering many services, they have used
Flo, a quirky and witty employee as their face of all the
advertisements and it paid off heavily as customers could
now see the company in the form of a person rather than
an institution and connect with them, thus reaffirming
their trust in the brand and invest more thus generating
more sales

12. Flo is everywhere
The marketing team of Progressive have made sure to keep modern and relevant
and thus she appear across all screens, including TV, internet, mobile apps, video
games, animated Youtube videos and even has her own Facebook page
This strategy made sure that the brand Progressive is represented almost
everywhere in the form of a relatable person and triggered customers to stay
connected with the brand wherever they went online.
By getting her on board in the game SimsSocial, Progressive ensured that even
the gaming community is also effectively targeted and this gimmick has paid off
well in the long term.

13. Relevant commercials
that attract
If there is one thing that Progressive have done well, it is to make relevant commercials on the
trending topics thus acquiring wider reach of their commercials and thus more effective
promotion.
The recent example is the commercial made with the upcoming movie ‘The Ghostbusters’ and
the commercial is highly trending and getting rave reviews

17. Online insurance and beyond
The site has evolved over years and now is available 24x7 for its consumers with following features
 Policy Service and Management — Policyholders can log in to update information, make
payments, get vehicle recall information and more
 Online Claims Reporting — Policyholders can log in to report auto accidents and receive glass
claims in minutes by just uploading the picture of broken glass, etc.
 Rate Ticker — Scrolling rate ticker displays actual Progressive Direct auto insurance rates side-
by-side with those of other top auto insurers
 Agent Locator — If you prefer to buy insurance through an agent, you can search for local
independent insurance agents by entering your ZIP code or by selecting the type of insurance
you'd like to buy
And many more features

18. The steep growth of the company began in the 90s as it proved to be a
glorious period for the company
In the first half of 90s, the company grew by an average of 15% per
year with a peak of 39% in the year 1993
Between 1996 to 2005, the grew at an average of 17% per year, from
$3.4 Billion to $14 Billion
Progressive’s revenue in 2016 stands a whopping $21 Billion and it is
bound to grow further
Progressive on the rise (By numbers)

19. Customer Retention
High efficiency
Being a pioneer in technology gives an
edge over competition
Effective promotional campaigns
Up-selling and cross selling insurance
policies
Limited area- Only in US
Lack of privacy
High premiums for customers who commute at
night
Potential to expand overseas
Can couple Flo with sports teams for
better promotion
Focus on newer technology may make
them lose sight of business
Emergence of low cost companies

20. Progressive rose to prominence due to their
innovative methodology and their successful
launches that include IRVs, 1-800-PROGRESSIVE,
first website of its kind, Snapshot etc and their
marketing campaign have been helped by
excellent strategy employed, as they projected
their company in form of a person, Flo, and
consumers were better able to connect
themselves with the company.
Progressive uses cutting edge technology and
charge their costumers according to their usage
of the automobiles thus gaining better foothold in
the auto insurance business and are top auto
insurance company in US as of August, 2016

21. Created by Aditya Patni, IIT
Dhanbad, during a marketing
internship by Prof. Sameer
Mathur, IIM Lucknow