Allstate will never be Geico or
Progressive...and will never defeat those companies on their home turf...EVER...
Also, the pronouncements that Allstate is giving the majority of their customer base what they want is premature....and is yet to be seen...
The last formal retention numbers were the worst in 10 years. That is not an endorsement that customers are getting what the my want...but quite the opposite..
If that number tanks further in 2021 and beyond, all of the corporate pronouncements of the customers wants and needs e.g. transformative growth have NO credibility...
This leadership team better be sweating the future retention numbers...if they continue to go the wrong direction, the value of the Allstate stock share will go with it as it will be proof that corporate leadership took this company in the wrong direction.....
I look forward to hearing the next formal corporate release of where retention is in 2021.
5 replies (most recent on top)
WE'RE NUMBER 7! WE'RE NUMBER 7! WE'RE NUMBER 7!
Tons of effort, money, re-imagining and transformation built that.
Hard to understand how detached from reality these guys are. They never ask the front line what’s going on. If they ever do they get a tailored response from some yes man. Pitiful.
I’d love to see Tom or Glenn do an undercover boss as an adjuster. Maybe then they’d get it
Gentleman-Great post and comments! I am reposting Tommy's response to Michael Philips of Morgan Stanley question regarding retention.
Operator
Our next question comes from the line of Michael Phillips from Morgan Stanley.
MichaelPhillips
You guys mentioned the impact on the end of the payment plans and the pandemic and retention and growth in the quarter. I guess, Part A of this, is there any way to quantify that? And what I want to get at is, if so, how much – given that the EA is still in the bulk of your business, how much of was there a drag on retention because of things that you're doing with commissions and emphasis on direct and everything else that's going on? So can we quantify that impact, one and then how much of an impact if everything else was on retention?
TomWilson
Well, Glenn can give you some detailed specifics on the year. Of course, retention is always hard to figure out, because you have a bunch of stuff going on, you have people changing lifestyle, not driving as much, some people shopping more, you have competitive moves, you have things that we did like shelter in place, payback and payment plan forgiveness – not forgiveness, we just let you defer. And so as those things roll through the system, it's hard to do attribution on it. That said, it was down this year, which of course we're focused on. Our Net Promoter Score really peaked throughout the year. We got peaked in about July when we were doing all the shelter in place paybacks, it came down a little bit towards the end of the year, but not anything of any consequence or significance. Glenn, do you want to make a comment about the actual retention numbers?
And didn’t you live how Tommy deflected the analysts questions on retention in the last earnings call....
Hahahahaha
Better get a better answer next time Tommy.....
Right on point OP. It is one thing to get a customer in the door but it is another to
Keep them and you do that with service....something that Allstate no longer cares about...
How often did we hear that a policy does not become profitable for 7 years...
You cannot maintain a profitable insurance business on new business alone..
If that retention deteriorates...Allstate is toast.