Can anyone explain why USAA spends so much money on TV ads? Is there really anyone out there who doesn’t know about USAA, especially if they’ve been in the military? I feel like that money could be better spent increasing dividends for members or lowering premiums. Isn’t that a better way to grow the customer base? If USAA wants more members, wouldn’t lowering rates help more than advertising? What do you think?
I’m looking into other insurance rates tomorrow. I honestly feel like I’m paying way too much, and these ads just make me even angrier about it.
The old, traditional customers are getting older and less in number. The percentage of people in active military duty is shrinking, so even if many join USAA, it won’t be enough to keep the company growing. If they don’t get new customers, they might shrink and lose profit.
@Casey
That’s exactly the issue. USAA used to be fine with a small customer base, giving them high-quality services at a fair price. They didn’t need to chase huge profits or try to be like the big banks.
But now they want to be just another giant US bank, and it’s making many people leave. I remember when I joined USAA because it was recommended to me in army finance classes. Now, I don’t hear anyone at work telling new recruits to join USAA anymore.
@Casey
To be a member, military people need a USAA account to pass it down to their kids. Most military families already know about USAA. If someone who was never a member passes away, their family can’t join. So the people they are advertising to are even fewer.
@Casey
How can people complain that the company got fined for being too big and then say it’s shrinking and can’t survive? Which one is true?
Riley said:
@Casey
How can people complain that the company got fined for being too big and then say it’s shrinking and can’t survive? Which one is true?
Both can be true at the same time.
They are trying to reach the families of veterans who didn’t join USAA.
The core of USAA’s members are veterans who’ve been with them for decades. But in the next 10-20 years, many of them will be gone. Reaching out to families of veterans who never joined is a good way to get new members.
They’re also talking about changing the rules for membership because inflation and other things make premiums higher. It’s not like USAA is raking in billions of dollars.
I don’t get it either, who are they even targeting with these commercials? They’re just awful, and Gronk is a terrible spokesperson.
Bailey said:
I don’t get it either, who are they even targeting with these commercials? They’re just awful, and Gronk is a terrible spokesperson.
Is Gronk even eligible to have a USAA account?
@Emory
Nope. They even joke about that in some of the ads. I have no idea why they picked him to represent USAA.
It’s not just about new people in the military anymore. A lot of people are eligible for USAA if their grandparent is still alive. USAA is an insurance company, and ads are a way to get people to call. Ads help bring in money, and money helps keep prices competitive. Everyone knows Progressive exists, but they run ads all the time.
USAA is like LA right now—some parts are a mess. Complaining about commercials is valid, but they need to focus more on things like government issues and staffing problems.
USAA has around 13 million members, but there are about 16 million veterans in the US. That 13 million includes family members, not just veterans.
And the 16 million doesn’t count active-duty members or people who could be eligible. I wouldn’t be surprised if 10-15 million more people could join.
Check out these links for more info:
@Ash
I remember USAA coming to recruit people during AIT.
I said the same thing about Statefarm’s Super Bowl commercial last year. It’s frustrating.
I agree, stop spending so much on ads and sponsorships. Cut the rates instead.
USAA should go back to its roots. These ads are just a waste, along with the annoying chant when you call them.
What successful business are you running that makes your opinion matter so much? Just another armchair expert…
Coop said:
What successful business are you running that makes your opinion matter so much? Just another armchair expert…
I thought I was a part-owner of USAA.
Coop said:
What successful business are you running that makes your opinion matter so much? Just another armchair expert…
I thought I was a part-owner of USAA.
Well, throw your name in the hat and maybe you’ll get some votes.