Progressive Auto Insurance Company: Company Analysis

Progressive is a large company that started the business in 1937. Progressive employs more than 26,000 and its revenue as of 2004 was 1.04B. Progressive distributes its services through telephone, Internet and independent agents. Progressive conducts business in 48 states and the District of Columbia and has organized these 49 jurisdictions into six geographical regions. The Agency and the Direct Businesses are managed at the local level and have three General Managers, each responsible for two regions. The Claims business area has six General Managers responsible for one region each, with managers at the state level. Sales and Service (which includes Agency and Direct customer service, direct sales

Customers are more willing to purchase from companies that they feel consider their needs when they create products and services. The more loyal customers are to a business, the more likely they are to refer the products or services to friends, family and business associates. Customer service becomes a part of your company's brand when you run a customer-focused business. When customers hear the name of business, they automatically associate it with knowledgeable and friendly sales professionals and a company dedicated to ensuring customers' needs are met. Companies such as online retailer Zappos and Trader Joe's are celebrated for their dedication to being customer-focused businesses and providing superior customer

This experiment showed strong brand loyalty even though there was a price increase. Therefore, when price increases, costumers will generally seek for substitutes if the quantity demand decreases, but not at

Brand loyalty is a competitive advantage for the brands. Brand loyalty is found to have a positive influence on the performance of the product. it is known to increase the financial benefits associated with the product. brand loyalty has a positive and direct relation with the financial performance of the company. The revenue generated from a product increases. When a customer buys a product and product satisfies the consumer need, the customer become satisfied. The satisfactory post purchase behavior of a consumer propels the consumer for buying a product again and again. This repurchasing behavior of a consumer increases the sales of a product and ultimately increases the revenue of a product. The financial performance of a product enhances as the revenue increases, the profitability of the product also increases. Brand loyalty sticks consumer to a brand and does not switch to other

Customer loyalty is much harder to obtain that customer service satisfaction. The most important first step is to satisfy the customer by meeting their expectations. Customers only give a company one chance and if they aren’t satisfied they will not do business with that company again, as well as tell others of their experience. The next step would be to exceed the customer’s expectations. If a business goes above and beyond to assist the customer they begin to build loyalty. The next step is to truly surprise the customer. In order to dominate the marketplace the company must find a way to make them selves stand out with their product or service, accompanied with phenomenal customer service. Once this has been done customer satisfaction and loyalty will be gained. “Acquiring a new customer can cost four or five times more than keeping a current customer” (Bestmark, 2013). So it’s essential to keep the current customer’s happy and coming back for more.

The term “Brand Loyalty” also called as “Customer Loyalty” has been in the business industry since a very long time as a model to be used in conducting business. But it wasn’t until the mid to late 1900’s that the term was actually given its due importance by making it a vital part of advertising and marketing. The concept of marketing evolved substantially from being focused on sales of a product to having Customer satisfaction to be its focal point. Studies further revealed that there was a positive correlation between customer satisfaction and Brand Loyalty.

& Streukens, 2005) because attracting new customers is considerably more expensive than retaining old customers (Reichheld &

Good customer service is all about bringing customers back. Due to intangibility, the customers can’t feel the service, and thus causes lack of confidence of customers to the services. Therefore, the business should ensure that they provide a good, nice, friendly and professional service to the clients. The essence of good customer service is forming a relationship with customers – a relationship that that individual customer feels that he would like to pursue. The staff must ensure that they consistently do these things:

Customers dealing with the business feel that the business listens to them more hence stay with the business longer.

Brands make customer esteem on the grounds that they decrease both the risk of buying things and the effort, and subsequently give suppliers a motivating force to put resources into quality and advancement. Branding can upgrade the customer ‘s experience psychologically and aesthetically (Clifton 2009).

The primary focus of this research is to develop and understanding the reasons for brand loyalty, as there is a literature gap in this area of marketing management. A lot of researches been done in the past on the benefits of brand loyalty but there is a literature gap on how an organisation can build brand loyalty. The literature of market is still debating of what compromises brand loyalty (Chaudhuri & Holbrook, 2001).

This paper discusses why building customer relationships is a key factor in the overall success of any business. The objective of developing customer relationships is to enable a business to learn who its customers are and what value they can bring to the business. As businesses look for new ways to strategically build their customers retention, a determined customer-oriented staff is imperative. It will increase customer satisfaction and loyalty because the entire service experience will be exceptional. Managers should therefore select, train, and reward employees who have developed great relationships with customers. This paper will show that when customer relationships are effectively utilized, results will increase profitability and greater customer loyalty, two key needs for any organization.

essay will explain why quality of service is important for costumers that results in success of companies. Competitiveness in a business area is hard in reason that there are many different companies. In addition, quality is relevant to keep costumers and results in loyalty costumers.

Simply, long-lasting customer loyalty is acquired when a customer is willing to come back to the organization from times to times to enjoy the products or services offered despite the availability of other organizations who offer the same kind of products or services. This is hard to acquire with just mere marketing. In fact, marketing creates an image for an organization to grab consumers’ attention the first time consumers catch glimpse of the organization. However, keeping them coming back requires the involvement of more factors, mostly the quality of the products or services.

By improving customer service, customer will be more happy and start to stick with the product and hardly shifts to the competitors products easily. (Zeithaml, Rust, & Lemon, 2001) This in itself is a big plus point for the company as customer retention is far cheaper then customer acquisition.