If you watch television, it’s likely you’ve seen the commercials featuring Emu Limu and Doug promoting Liberty Mutual’s car insurance. The listener is told you can “customize your car insurance” by “only buying what you need.”

What Liberty Mutual is doing isn’t unique–their positioning of being able to “customize your car insurance” may be.

I’ve learned some time ago that Geico offers insurance at lower rates than many competitors as they don’t automatically include a provision for allowing someone not expressly listed on the policy to be covered by the standard policy. So, if you allow your best friend to drive you home from the hospital, that driver isn’t covered driving your car. I don’t know if they make this clear. If you are comparing insurance prices with Geico, you may not be comparing apples to oranges if you aren’t aware of the policy restriction.

Liberty Mutual has unbundled or broken out coverage options to allow customers to select what they want. My insurance company, USAA, allows for me to customize by picking coverage options and policy limits. They don’t advertise it as “customization” but they do it. I’m sure most insurance companies do.

What’s important to observe is the world is moving in the direction of what I call the a la carte customerTM. It’s time to get on board.

Photo Credit: Flickr, Bonnie Moreland

Thought for the week:

“Fundamentally, customers do not want choice; they just want exactly what they want.” ― B. Joseph Pine II, The Experience Economy


Dave Gardner

Dave Gardner is a management consultant, speaker, author, and blogger based in Silicon Valley. He's been in the front row for the birth and evolution of Silicon Valley, the innovation capital of the world. Since 1992, Dave Gardner focuses on making the complex simple around people, process and technology. Dave is the author of Mass Customization: An Enterprise-Wide Business Strategy

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