Progressive Hbs

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1.Should Robert McMillan roll out Autograph nationally? Why or why not

Dear Mr. McMillan,

In this e-mail, I will expose my opinion about the question whether or not to expand the Autograph on the national level. Summarizing all the information provided, I came to a conclusion that we should not roll out Autograph nationally at this point of time. Such a strong opinion of mine is mainly based on the point that I don’t think Progressive will make profit from this system. It is a very challenging and advanced system from the technology and organization point of view. Its pioneering nature corresponds to Progressive’s rich culture in innovations. Progressive’s vigorous uprise through decades of 20th century has strongly relied on innovating “new” systems like “Immediate response” and “Comparison Quote”. Also, Progressive was successful in involving into non-standard market like motorcycle insurance and non-standard drivers. Prominent and advanced method which Progressive used to segment customers through data mining and analyzing their behavior presents a healthy ground for the implementation of the Autograph project. Autograph would bring a lot of benefits to the company. New technology would provide us with more data about customer behavior, which we could use to better segment our customer body and thus create value for the customers and for the company. We could also use the additional benefits like low battery warning, free gps system, remote control unlocking, assistance tracking, more accurate claim processing based on data which could prove speeding, regulations violation etc. Party that would benefit most from this system is the customer. Customers would pay in average 25% less for the same insurance policy than before. That will attract more customers and Progressive will have bigger market share, but for what cost? Average cost for GPS car transponder and other components is around 500$ per car for Progressive. Comparing this amount to the...
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