Can anyone explain why USAA spends so much on TV commercials? Do they really think military people don’t know about USAA yet? I feel like that money could be better spent, maybe giving back to the officers (I’m bitter about being enlisted) through higher dividends or lowering premiums for everyone. Wouldn’t lowering the rates help get more members if that’s what they 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.
I wonder the same, who are they targeting? The commercials are horrible, and Gronk is a terrible spokesperson.
Merrick said:
I wonder the same, who are they targeting? The commercials are horrible, and Gronk is a terrible spokesperson.
Is Gronk even eligible to have a USAA account?
Merrick said:
I wonder the same, who are they targeting? The commercials are horrible, and Gronk is a terrible spokesperson.
Is Gronk even eligible to have a USAA account?
No. They even joke about that in some of the commercials. It’s still a mystery why they chose him as a spokesperson.
USAA needs to go back to what it was about originally. These commercials are a waste, and that annoying chant when you call them doesn’t help either.
That’s true… but more importantly, they need to focus on serving the members they already have.
Take the advertising money and use it to place ATMs around the country. That would be more useful for members, and the logo everywhere could act as advertising.
They’re trying to get the families of vets who didn’t join USAA. The core of USAA users are vets who’ve been members for decades, but in a decade or two, many of them might be gone. They’re reaching out to people who weren’t in the military but had a parent or relative in it as a way to get new members. They’re also talking about new rules for membership because of inflation and other costs. USAA isn’t making insane profits, but they need to keep the business going.
@Taliesin
They shot themselves in the foot by having rates 2-3x higher than anyone else. The customer service is amazing, but that doesn’t justify spending that much money on ads. When I was on active duty, we recommended USAA to the junior Marines because it was the best and competitive on price. Now it’s too expensive to recommend. They’re losing veterans because they’re not staying competitive. Seeing all those ads makes it clear that they’re not focused on being competitive; they’re spending all their money on celebrity endorsements. I don’t even use USAA as my primary bank anymore because NavyFed has consistently had better rates. I still keep an account there, just in case the new USAA CEO decides to start using the money for the members and not for Gronk.
USAA has been targeting more than just people who are currently in the military for years. A huge number of people are eligible if a family member is still around. It’s an insurance company, and ads are a way to get customers to call. Ads bring in revenue, and revenue helps keep prices competitive. Everyone knows Progressive exists, but they buy ads constantly. USAA is kind of like LA right now, parts of it are on fire, but we’re complaining about trash on the beach. While it’s valid, it’s not where I hope they’re spending their attention right now. The bigger issue is the failures with the government and staffing problems, from training to morale, etc. Again, you’re not wrong to post this.
The old customers are dying off, and the percentage of people in active duty is lower than ever. Even if a high percentage of them join, it’s not enough to sustain the company at its current size. USAA will shrink and be less profitable unless it keeps adding new customers.
@Vega
That’s the issue. USAA used to be fine with a small customer base and providing a high-quality product at a fair price to them. They didn’t need huge profits. But now they want to be just another big US bank, and more people are leaving because of it. Many service members used to recommend USAA, but I don’t hear anyone at work recommending it anymore.
@Vega
To be a member, the military member needs a USAA account to pass it down to children. Most military members and families already know about USAA. If the member was never a member and passes away, family members can’t join. So the audience they’re advertising to is even smaller.
@Vega
We can’t have posts saying the company got all these fines because it’s too big and then also say it’s shrinking and unsustainable. Which one is it?
Soren said:
@Vega
We can’t have posts saying the company got all these fines because it’s too big and then also say it’s shrinking and unsustainable. Which one is it?
Both things can be true.
I agree. They should stop with the excessive ads and sponsorships and lower the rates instead.
USAA has around 13 million members, but there are about 16 million veterans in the US. However, that 13 million includes children, spouses, grandchildren, and ex-spouses. The 16 million veterans doesn’t include active duty or others who are eligible. I wouldn’t be surprised if there are 10-15 million people eligible who aren’t members.
@Reese
They used to come and solicit at AIT.
Especially having Gronk as a spokesperson is what bothers me.