Can anyone explain why USAA is spending so much on TV commercials? Are there really military families out there who still don’t know about USAA? I just can’t help but think this money could be better spent. Maybe in bigger dividend checks for officers or lowering premiums for everyone. Seems like lowering rates could get them more members if that’s what they really want.
I’m shopping around for rates tomorrow. I’m convinced there’s no way I’m not spending more than double what I should be and these ads have me madder than hell.
The company’s older customers are slowly passing away. The percentage of the population on active duty is smaller than ever, so even if a high percentage of them join, it won’t be enough to sustain the company at its current size. They need to keep adding new customers or the company will shrink and profits will fall.
@Blake
That’s the issue. USAA used to be fine with a smaller customer base and offered good service at fair prices. They didn’t need to be another huge bank. But now they want to be just like those big banks, and that’s making a lot of military members leave. I used to hear about USAA all the time when I joined the Army, but no one’s recommending it to new service members now.
@Blake
To be a member, a military member needs to have a USAA account for their kids to join later. A lot of military families already know about USAA. But if the military member wasn’t a member and passes away, their family isn’t eligible. So, the audience for their ads is even smaller than we think.
@Blake
We can’t say the company got into trouble with fines because it’s too big, and then turn around and say it’s shrinking and unsustainable. Which is it?
Terryann said:
@Blake
We can’t say the company got into trouble with fines because it’s too big, and then turn around and say it’s shrinking and unsustainable. Which is it?
Both things can be true.
It’s because they’re trying to reach the family members of veterans who didn’t join USAA. The core of their members are veterans who have been with USAA for decades, but in 10 to 20 years, a lot of them might be gone. So, they’re reaching out to people who weren’t in the military but have a parent or family member who was. That’s how they get new members. They’re also discussing new membership rules because of inflation and other factors that make premiums higher. It’s not like USAA is making a crazy profit, they still have billions of dollars, but they’re not raking in insane amounts either.
I wonder who they’re actually targeting with these ads. The commercials are annoying, and Gronk is a terrible spokesperson.
Miller said:
I wonder who they’re actually targeting with these ads. The commercials are annoying, and Gronk is a terrible spokesperson.
Is Gronk even eligible to have a USAA account?
@Harper
No. They even joke about that in some of the commercials. It’s a mystery why they picked him to be their spokesperson.
It hasn’t been about new military members for years. A huge percentage of people are eligible for USAA if their grandparent is still alive. They’re just an insurance company, and their ads are a way to get customers to call in. Ads bring in revenue, and revenue keeps prices competitive. Everyone knows about Progressive, but they still run ads all the time. USAA is like LA right now, some parts are on fire. You’re complaining about trash on the beach, and while it’s valid, that’s not where I hope they’re focusing right now. They’re dealing with failures with the government and staffing issues, not to mention training and morale.
USAA has about 13 million members. There are just under 16 million veterans in the US. But that 13 million includes children, spouses, ex-spouses, and others, not just veterans. And that 16 million doesn’t include active-duty members or others eligible, it’s only veterans. So, there’s probably between 10 to 15 million people eligible to join who aren’t members yet.
@Lin
They used to come and solicit at AIT.
I said the same thing about Statefarm’s Super Bowl commercial last year. It’s ridiculous.
I agree. Stop with the over-the-top advertising and sponsorships, and just lower the rates.
USAA needs to go back to what they were originally about. These ads and that stupid USAA chant when you call them are just a waste.
And what highly successful business do you own or consult for that makes your opinion so important? Just another armchair quarterback…
Jordan said:
And what highly successful business do you own or consult for that makes your opinion so important? Just another armchair quarterback…
I thought I was a part owner of USAA.
@Zen
Throw your name in the hat and maybe you’ll get some votes.