Allstate’s Consumer Segmentation Strategy

When purchasing insurance or any other product or service, consumers have more choices than ever before – and they know it. But decision-making power is not in the customer’s hands alone. A company can build tremendous customer loyalty over time by making it a top priority to understand and meet its customers’ needs. As a result, Allstate continues to refine its product offerings, marketing outreach and customer service based on careful research. Our company now serves four different consumer segments with distinct interaction preferences (advice and assistance versus self-directed) and brand preferences (brand-neutral versus brand-sensitive).

Allstate

Allstate brand auto and homeowners insurance products are sold primarily through Allstate exclusive agencies that serve customers who prefer local personal advice and service and are brand-sensitive. Allstate brand sales and service are supported through call centers and the Internet. In 2012, the Allstate brand represented 92 percent of the Allstate Protection segment's written premium. We offer Allstate brand products through approximately 9,300 Allstate exclusive agencies in the United States; approximately 1,800 independent agencies in primarily rural areas of the United States; and approximately 670 producers in Canada.

In addition, our Allstate Financial segment provides life insurance, voluntary accident and health insurance, and retirement and investment products primarily through Allstate exclusive agencies, which employ more than 1,200 exclusive financial specialists to meet the needs of our Allstate brand customers.

encompass

Encompass brand auto and homeowners insurance products – largely package policies – are sold through independent agencies and serve customers who prefer personal service and support and are brand-neutral. In 2012, the Encompass brand represented 4 percent of the Allstate Protection segment's written premium. In the United States, we sell Encompass brand products through approximately 2,800 independent agencies.

esurance

Esurance brand auto insurance products are sold directly to consumers online, through call centers and through select agents, including Answer Financial. Esurance serves self-directed, brand-sensitive customers. In 2012, the Esurance brand represented 4 percent of the Allstate Protection segment's written premium.

answer financial

Answer Financial, an independent personal lines insurance agency, serves self-directed, brand-neutral consumers who want a choice between insurance carriers. Answer Financial offers comparison quotes for auto and homeowners insurance from approximately 20 insurance companies through its website and over the phone.