Retention continues to drop year over year..
The reason that the “snake” needs to continually increase the advertising budget. The only way to remain profitable when you lose customers is to entice more…..but there is a limited pool and current Allstate word of mouth is poor combined with continued rate hikes…
Let’s see how long the “snake can continue to tread that water…
3 replies (most recent on top)
We can’t retain employees!!! Much less customers!
He-l, even with an employee discount I can’t afford our insurance! I don’t know how other people do it!
With Allstate’s aggressive stance with rate increases, you should see further attrition occurring in the retention ratio. Moreover, loss ratio will continue to be a problem at Allstate. 30% of new policies are derived from the direct channel. Direct business tends to have a higher loss ratio and 7% less revenue. Nat Gen is basically a nonstandard carrier. As you know Allstate does not have the pricing expertise to play in the non-standard market. Remember, profits are more important to Allstate than growth.