Last month we posted an interview on our Web page with Progressive's Karen Barone, national distribution leader for agency business, which proved to be 0ne of our most popular features.
Not surprisingly, part of the article's interest -- or more accurately, controversy -- involves Progressive's promotion of direct purchase along with sales through its agency force.
Many of our readers pointed to Progressive's heavy TV advertising -- currently featuring the wacky saleswoman character, "Flo" -- as testimony to its commitmemt to direct sales and cutting out the middleman. Surprisingly, in spite of the prevalence of Progressive advertising promoting direct sales, Barone noted that about 65 percent of Progressive's sales actually come through its more than 30,000 independent agencies.
Now, in recognition of that fact, Progressive is unveiling on Oct. 19 a new Flo commercial, featuring -- you got it -- an independent agent. (Well, actually, he's an actor playing an independent agent, kind of like actress Angelina Jolie will play me in "The Laura Toops Story," but you get the idea.) And, taking a tip from other industry branding programs (remember the Big I and Raymond Burr?), Progressive agents can even access a version of the commercial they can customize with their agency's branding to run locally.
The thinking behind this move seems pretty sound -- an attempt to promote the insurer's already prevalent independent agency sales. But the end of the commercial -- a voiceover that states, "Prices vary based on how you buy" -- sums up the controversy. Because, of course, consumers who buy directly through Progressive will pay less than those who go through an agent.
Do you think Progressive's new campaign will increase agency sales?
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.