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HR CYNICS UNITE: The AllState Claims Guarantee (Paying People to Leave)

For those of you that don't know, I'm a runner.  No races, just like to get out and reduce stress by going 4 miles or so.

These days - I'm listening to a lot of Pandora when I run.  I use the free Pandora service, which means I Allstate-GPS-Mayhem get fed a 30 second ad every three to four songs.  The ads are usually the same time after time, which means I have a lot of time to think about what the hell they're pitching.

The big one being played now is the "Allstate Claim Satisfaction Guarantee".  The basic jist of it is this - if you're an AllState customer and you're unsatisfied with how a claim is processed, they'll give you several months of premium payments (whatever your rate is) and let you leave.  Sounds like a great deal, right?  If I'm not satisfied, they'll PAY ME TO LEAVE.  Nice.

But wait a second - that's just smart business.  Let's say you have a crazy wreck that they can't deny the claim on, but it shows you're clearly a negligent wildcard.  They pay 60% of what they should have on the claim, you complain and cite the guarantee, and viola - they pay you out and let you leave.  You cited the guarantee, they gladly paid you out and removed a crazy person who their research shows clearly will run up multiple claims in the years that come - a customer they lose a lot of money on. 

Sure you can go.  Here's your guarantee money.  Don't let the door hit you on the ##$ on the way out.  

Wait - we messed up on the claim and you're not a crazy person?  Let us evaluate your lifetime worth and future propensity to put a bunch of claims into the system.... Oh, you're a decent customer, even though you're making a claim now - we'll increase the payout on this claim to keep you.

The claim satisfaction guarantee is a great way to remove bad customers - i.e., the ones that aren't
profitable.

Zappos has always done the same thing with the "we'll pay you 2k to leave after training, no questions asked".  Because if you'll take 2K to leave after training, you were going to be a net negative anyway.

The satisfaction guarantee.  My gut tells me we should do more of these at various points in the talent cycle in our organizations.  Nobody likes Mayhem - like you.  

Comments

Lruettimann

Love those mayhem commercials.

steve

often the unorthodox makes the most sense. And cents.s

Chris

You misunderstood the ad. If you are unsatified with your auto claim they will give you your six months of premium back. Leaving isn't the idea, happy customers are.

iso 9001

Really an accident is a very big problem of theme please help us to solve.

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