dolution

Progressive-1 Progressive gained a competitive advantage in the mid-1990s when it became one of the first auto insurance companies to sell direct to consumers via the Internet. The company’s early adoption of technology enabled it to offer a unique service. In addition to providing free online quotes for its own policies, Progressive also provided quotes from up to three competitors, information that until then had been available only through insurance agents. In addition to saving its customers time, Progressive was able to save them money by showing that, in many cases, its policies were more competitively priced. Once Progressive won new customers’ business, it mobilized an army of 12,000 claims adjusters who will speed right to an accident scene—and often cut a check right on the spot. It has further enhanced its competitiveness by adding innovative service features such as an “accident concierge,” who handles all aspects of the claims and repair process for customers, and online policy management that enables customers to make payments and change coverage any time. These customer advantages made Progressive the 3rd largest auto insurer in the United States by 2006, up from 48th in 1980, with 12 million customers. Explain the differentiation strategy used by Progressive!