How Getting Too Personal Sullies Your Brand
Watch out for the “Good Hands”
“Oh my gosh!” My wife shouts from the kitchen. I rush in to see what happened. There she is, my beloved wife of 4 years, holding a bill from Allstate Insurance. Why are our premiums going up? Because they’ve added my ex-wife to our policy.
It was a funny story to tell at parties – until the bill arrived. One month before, on my wedding anniversary, my wife approached me with a letter wanting to know why Allstate planned to add the woman I divorced 10 years ago to our current policy. Clearly it was some sort of data mining gone wrong. The letter from Allstate said, “If you would like to add Laura as a driver under your auto policy, you don’t have to do anything. We will automatically make this change in about 30 days.”
Allstate misused Marketing Personalization. The result? Allstate decided, without our permission or request, to add someone to our policy unless we interrupt our busy schedules and actively object. They’ll never do it, I assured my wife. It’s got to be illegal. We chuckled at the uncomfortable mistake and went on about our lives. Allstate would never commit such a rogue act – or so I thought. But then they did it. And sent us the bill one month later.
Marketing Personalization Gone Wrong
Sound too hard to believe? It should, because no marketer should ever thrust products on their customers without their clear request and approval. I’m a marketer and I love marketing. As upsetting as Allstate’s actions are to my personal life, I’m equally upset by how they blemish the community of marketers. My belief: Purge the rogues from the community!
As I wrote in Problems with Marketing Personalization, when you use customer data to serve the needs of your customers, it’s an effective use of marketing personalization. Build long-term relationships grounded in trust and you will be a winner. Trade long-term relationships for short-term gain and you do irreparable damage to your brand. Allstate spent years with me building their brand and minutes destroying it. The “Good Hands” of Allstate now has a new meaning for me – and I’m watching my wallet.
According to the White House Office of Consumer Affairs, news of bad customer service reaches more than twice as many ears as praise for a good service experience. The takeaway from HelpScout is that taking the time to remedy the situation with an unhappy customer is not only worthwhile for keeping their business, but also to avoid negative word of mouth exposure.
New research shows that buyers and sellers are misaligned. Get the latest survey results from over 500 global companies.
More Dirt on Allstate – if you’re into that sort of thing
If you want to kick someone’s research skills up a notch, just piss them off. You won’t believe all of the dirt I was able to dig up on Allstate after Lettergate. We all make mistakes and have oversights, but get this. When we published the original article about Allstate’s threat to add my ex-wife to our policy, our visitor logs showed that someone at Allstate read the blog post. First at 12:17 PM CST and then again at 1:11 PM CST on April 15th. They read the article not once, but twice, and then continued with their rogue policy of thrusting services on customers without request or consent. Oops!
Local Allstate agent confirms
The local Allstate agent confirmed that they do this. When I asked where they came up with this name, she quickly mumbled something about Laura being linked to my home address through the DMV. The problem is Laura moved to North Carolina 10 years ago – so she doesn’t have a Texas driver’s license anymore. Now she lives in China. So, how does someone who hasn’t lived in Texas in 10 years isn’t even a U.S. resident find her way to Allstate’s computers?
Expert witness: “I was a victim of pure fiction”
The same way “Charles” did on Brad Whittington’s insurance. As an author and novelist, Brad knows a good piece of fiction. Allstate Insurance sent him a letter claiming Charles was living in his house and would be added to his insurance. Brad knew the 24-year history of his address and knows there has never been a Charles living there in that time.
Brad called Allstate and asked who Charles was. Allstate didn’t know who Charles was or how he got linked to Brad. Not even a salacious story about a long-lost love child looking for meaning in life. Nothing. Brad has no idea who Charles is or how Allstate determined Brad should pay for his insurance. Pure fiction.
Texas Department of Insurance: “No problem here”
Still thinking this had to be illegal, I called the Texas Department of Insurance to report suspected fraud and ended up talking to someone named Scott, who wouldn’t give his last name. Most of the call consisted of Scott talking over me and defending the actions of the insurance industry. I asked Scott how he would feel if I randomly decided to invoice him for some product he didn’t request or agree to. He made it clear he would have a problem with that, but apparently not with the same action done by the insurance industry that his office oversees. In his defense, Scott earns his living from the palms greased by the insurance industry, so I don’t really blame him for his position.
Insurance expert: “This is horrible customer service”
Still shocked by all that happened, I called a friend from the insurance industry to get his perspective. Craig Straube is a local insurance agent for Farmers and is appalled (naturally). Craig personally contacts his customers to make sure their policy is right and no rogue individual is added to their policy. He says that the vast majority of names arbitrarily added to policies are wrong. This is what we should expect from marketing professionals. Meet the needs of customers and look out for their best interests.
It could happen to you
The most upsetting part of this story is realizing this isn’t isolated. It’s not just Brad and me. Allstate appears to be fishing for names and adding them to insurance policies without calling the policyholder to ask if the person lives there. It could be happening to you – or one of your friends. Apparently, insurance companies have been doing this for a couple of years. This is horrible marketing and horrible customer service. As consumers, we must demand more of the companies that serve us.
As marketers, we must be vigilant about aligning our marketing to serve the needs of our customers, instead of thrusting products on them without their consent. It is to our brands’ own peril if we fail, because of human nature to expose the rogues.
Have the “Good Hands” been inappropriate with you? If so, speak up. If not, just be sure and learn from their mistake.
Letter from Allstate adding ex-wife
Letter from Allstate adding Charles
New research shows that buyers and sellers are misaligned. Get the latest survey results from over 500 global companies.
I started to get calls and text messages from my Allstate agent trying to get me to increase my coverage. I told her multiple times I was not interested and to stop contacting me to sell me more insurance and that I will contact them if I want to make any changes to my policy.
She unenrolled me from E-Bill and E-Smart which also takes me from their preferred package ( requires you to have multiple cars and homes on a policy to get the discount ) I don’t make changes to my insurance and especially don’t make changes that cost me more money with the same coverage. I have had Allstate for over 10 years without a single claim and this is how the agents conduct themselves?
That stinks Michael! Sorry about that. Certainly not the type of customer service to grow the company.
My girlfriend just got a letter today from Allstate today stating the same thing. Because we live together, they are going to add me to her policy in 30 days if she doesn’t call them right away. I don’t want anything to do with Allstate. So how can they add me to someones insurance without my permission. I told my girlfriend to look for another insurance company. This is ridiculous.
Sorry about that! It’s frustrating. Alstate’s CEO announced they’re laying off thousands of employees and cutting agent commissions 10%. Things aren’t looking good there.
I had my 26 year old son added to my policy–with no letter or notification. Just an unpaid balance and an updated policy. My 26 year old hasn’t driven or had a drivers license for over four years. So, if the source was DMV, it would have been clear that he has a state ID, NOT A DRIVERS LICENSE! It took me several calls to sort it (which is not time I have), and if it wasn’t for a great Allstate agent, I would have moved my five vehicles, four drivers, and home coverage to another company.
I am sure this is illegal and will be pursuing it. Allstate uses its app and emails and don’t expect people to take the time to navigate their impossible app. Take the time to do it, or better yet–find another insurance company!
Very sorry to hear about that Sherry. This is shocking behavior. And consumers should work with companies that represent their values and serve them well.
I just found out today some random guy name josue has been on our account for almost 3 years!?? Without our knowledge because of this! Because “they sent us a letter and we didn’t respond”…I never even got the letter!!!
I’m sorry that happened to you! It just seems wrong.
How is this not a class action lawsuit? I was just added to my mother’s insurance, my age a legal name were wrong, they had no proof I could even drive. I have lived in another state for over 15years. I filed a complaint with the RI Attorney General’s office since this is clearly taking advantage of their customers since it is an “opt out” not an “opt in” option.
So sorry that happened to your mom!
Well, here we are in mid-2022, and not much has changed with Allstate. I got a notice that my bill went up to $25. I called and asked if this was because I hadn’t signed another declaration letter. Allstate previously charged me $44 per month because I hadn’t signed one and was never notified that I needed to sign one. I thought this was another one of their slimy moves to entrap people (and it is).
The representative informed me that the charge was because they added my mother, who uses the same address as me, to my policy.
I have nothing to do with my mother’s driving affairs. So why did they randomly put her on my policy without my approval? And charge me for it! And get this, the representative also informed me they would take her off my policy ONLY if I gave them her current insurance information, i.e., policy number, company, and expiration date. So I’m thinking we should all join a private chat somewhere and talk about a C.A.L.
Tomorrow, I will research the legality of this company’s actions.
So sorry this happened to you. I left Allstate and went with a different carrier. That seemed to be the easiest way to handle it. I can’t believe they insisted on you providing your mother’s private information to avoid paying for something they forced you to buy.
#same
It happened to me, and then they had the audacity to make it sound like it was my fault because I didn’t respond within the 30 days –
But the thing is I pay my 6 month premiums in full so I never thought I had to check in with them in the mean time? All in all it has been the most stressful experience dealing with it.
Isn’t that crazy how they tried to blame you!!
I’m so sorry Ann!
Just happened to me as well. 6 months worth of paying for some person I don’t even know. Worst part AllState won’t refund me. Because it’s my fault. Makes absolutely no sense!
I’m so sorry Shannon!!
It’s hard to believe this is legal. Maybe I should send Allstate an invoice for my services that they never agreed to…
Again, I’m very sorry!
Craig
Allstate added a Person that I don’t know to my Policy. It’s not even my address and have been overcharging me for the last two months.
Hi Kimberly,
I’m so sorry that happened to you. It’s hard to believe that’s even legal. It seems like it would be fraud in any other industry.
6/7/2023 I just received the same letter. Its says a guy name George lives in our household??? But is just me and my husband here. I guess I have a ghost living here or something…. I guess I’m going to call as the 30 days have not pass but will let them know that if this happens again I am going to change of insurance company.
Glad you caught it before they charged you. I switched to Farmers Insurance. They’ve been great.