Geico Insurance Company

For several years, the auto insurance industry relied on personal relationships that were built between local insurance agents and their local customers (Lewins & Davis, 2002). However, the way consumers seek auto insurance is changing possibly due to advances in technology. In today’s society, technological changes are constantly evolving. It is important for a company such as GEICO to adapt to consumer’s demands for the latest technology. The internet and website capabilities are just one of several technological advances that are changing the industry. In 2006, GEICO expanded their internet offerings to include interactive features that helped appeal to a “contemporary and hip lifestyle (“GEICO,” 2013).” Another recent change in technology is the use of mobile devices and the need of customers to be able to connect at any time and virtually anywhere. In 2010, GEICO responded to this need by being the first in the insurance industry to provide consumers with the ability to quote and buy policies from a mobile device (“GEICO,” 2013).
With the recent boom in social networking sites like Facebook and Twitter, GEICO has embraced the social networking tools and utilized them to begin two-way advertising with consumers (Kumar & Mirchandani, 2012). Social media is becoming an increasingly popular tool to generate positive word of mouth to spread brand awareness and ultimately generate sales and return on investment (Kumar & Mirchandani, 2012). GEICO is then able to utilize the available analytical capabilities of social media to analyze the impact of their campaign (Kumar & Mirchandani, 2012). Social media helps organizations, like GEICO, stay connected with the growing needs of their customers and react almost simultaneously.
Consumer Tastes and Preferences
Consumers’ tastes and preferences for auto insurance are shifting due to the growing need for convenience. One way GEICO has responded is by offering an expansive list of internet capabilities. Potential customers are able to receive a car insurance quote in 15 minutes or less (“GEICO,” 2013), compare the various policy offerings, and view the multiple discounts that GEICO has to offer. Current customers are able to view or pay their bill, update their policy, or report and view claims online. Customers have the availability to access information at their convenience, 24/7, without having to wait on an agent to provide the requested information.
Another program designed to maximize convenience is the Auto Repair Xpress program (“GEICO,” 2013). A claim adjuster starts by meeting the customer at the repair location. During the repair process, the adjuster ensures the quality of the repairs. Finally, the repairs are guaranteed for as long as the consumer owns the vehicle (“GEICO,” 2013). This program is designed for convenience and customer satisfaction.
Consumers seeking any service are always going to be concerned with the customer service that they receive. GEICO prides itself on excellent customer service. In fact, 97% of policyholders report being satisfied with the service that they receive (“GEICO,” 2013). On their own website, customers rate GEICO auto insurance at 4.6 out of 5 stars. The great customer service helps to ensure new customer acquisition and current customer retention