The decisions to continually raise the cost of a product to maintain profitability and margins is not sustainable long term. Customers will not just continue to pay higher and higher prices to buy a product UNLESS there is an incentive to the consumer to do so…something that they cannot get elsewhere…or at a lower price..
Incentive being better service, low competition in the market, etc
There is NO consumer incentive to use Allstates products…and a lower price can ALWAYS be found elsewhere…
The only hand that this team knows how to play is to raise the price and to gut the infrastructure of the company in a feeble attempt to lower price “at some point.”..It may (or may not) lead to short term profitability but long term it is a loser and will fail..
No creativity, no thinking out of the box, no attempts to get the customer facing employee to embrace any vision for a better future for their families …NOTHING!!
This staff truly believes that employees will work harder and longer… not for some positive for their families down the road…but solely to benefit the profitability of a corporation who clearly intends to eliminate them at “some point” in the foreseeable future…Sorry Tom and Mario, the standard employee does not care about you personally to add to your riches at the expense of their own self interests.
Raise prices, cut service, lead staff by fear and intimidation…
There is nothing here that would lead to long term success in any way…
….also don’t get too excited by the bounce in stock over the last week….it was driven by company buybacks not any confidence by investors…..
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My homeowners insurance is ready to renew. Working with an agent
Told her no to Allstate
She agreed due to price and claims handling
She can never reach an adjuster
SMH
TW and Mario need to think outside of the box. Non renew all of the frequency and shock policy holders without regard to state fines and regulations. Freeze new business for at least 6 months in troubled states. Buy car parts directly and cut out the body shops from ordering parts and mandate Allstate only shops for repair. Squeeze the large car rental agencies. Sell ACV only HO policies. Underwrite for trees on the property (trees cause a lot of damage to homes) and mandate large AOP deductibles etc. Increase PIP deductibles to $2500 and get really tough with fraud. Lawsuits will fly but their loss ratios will collapse. They will never do this.
Bree Newsome Bass: “We have to directly address & resolve the issue of wealth inequality, particularly the issue of companies paying ceos RIDICULOUS sums of money & buying back their own stocks instead of paying their workers.”
Tom Wilson is a washed up ex Sears salesman from Chiraq. What do you expect. Tonic Tommy has been in over his head for years now. He has never been able to keep up with the industry current trends. One can only hope the stock price & customers continue to drop. This will be the end of this company.
Tom Wilson will always be the face that comes to mind when the trajectory of Allstate changed forever…..and it will not be a positive memory for those who knew a time when the corporation was a major player and the name was iconic….
Once market share is lost to competitors that can execute…it is very difficult…nearly impossible to regain it…
Sears is the example that will be taught to MBAs forever….Once leadership woke up to concentrate on retail…it was too late…they were forever trying to swim upstream against Walmart, Target, etc….that could execute and could always undercut on price…
Same happening now in real time…
Allstate will never surpass Geico, State Farm or Progressive but it is also clear that some of the carriers nipping at their heels will soon surpass them as well…..
Sears did not care about market share until customer loyalty was clearly with competitors and it was clear that those customers were never coming back….Same happening now with Tom Wilson and Allstate…
Sad and ironic considering Sears and Allstates history together…
The double whammy of failure….
The communicated plan itself is not a winner…..and there is an inability of this leadership team to execute and deliver on any of the communicated promises that have been made by leadership to this point.
Shapiros vision failed at Liberty Mutual forcing them to rip it up at the roots and the same thing will happen at Allstate at some point when new leadership changes direction….but it likely will be too late to change the downward trajectory of the company leading to competition continuing to “leapfrog” Allstate…..