Allstate challenges GEICO to a SAVINGS showdown

9 INCH AXIOM – Challenging strength

‘Sometimes the best way to challenge a competitor is to directly attack their main strength’

A couple of weeks ago Allstate took a direct swipe at GEICO.  Allstate’s pitchman Dennis Haysbert called out the Caveman, the Gecko and Kash by taking the following stand:

Customers that switched to Allstate from GEICO saved an average of $581.

Ouch – hit GEICO where it hurts.  Why focus on savings now?

It turns out GEICO switched their focus back in June to ads that stressed their ‘service’ and 97% customer satisfaction rating. I’m guessing a strategic move from Allstate.  

THE TALE OF THE TAPE IN THE SAVINGS SHOWDOWN:  

Differences between Allstate and GEICO

Allstate focuses on an emotional appeal to consumers.  It’s all about ‘protection’ and the reinforcement that you’re in ‘good hands’.  There is an emphasis on ‘trust’ and a consistency with actor Dennis Haysbert.  The company has made a concerted effort to build up their offerings through the ‘Your Choice Auto’ program.  The following 4 features are great differentiators: Accident Forgiveness, Safe Driving Bonus, Deductible Rewards and New Car Replacement.

GEICO focuses on a logical appeal.  You can save money by switching.  Their marketing focuses on 3 things: Ease of switching (cavemen), 15 minutes can save you 15% (Gecko=GEICO) and the actual money you could save by switching (Kash).  Owned by Warren Buffett and Berkshire Hathaway they have pioneered direct to consumer insurance.   The best way to characterize their marketing approach is ‘saturation advertising’.  If I have one criticism, it’s that it seems like they run multiple campaigns at any given moment.

STAY TUNED:  It will be interesting to see if GEICO responds to being called out.  I’ll also be curious to see how deep Allstate goes with this current campaign.

Today’s Lagniappe (a little something extra)  - origin of the Gecko, backstory on how insurance companies target savings and  a tribute to legendary ‘good hands’ pitchman 

GECKO – The Gecko came to life back in ’99 due to the strike by SAG.  Here is an article on the origin of the Gecko and how he almost never left his cage.  [Bonus acronym trivia GEICO = Government Employees Insurance Company]

Savings – Here is an interesting post on how insurance companies target these types of savings.

Good hands pitchman – Ed Reimers passed away last Sunday at the age of 96.  Ed was the original pitchman for Allstate.  He was the voice for the Allstate brand over the course of three different decades.  

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