Allstate Rewards Allstate Corporation might be a newcomer to the customer loyalty space, but it has made great strides in this critical arena.

Take, for example, Allstate’s performance at last week’s second annual Loyalty360 CX Awards held during the Engagement & Experience Expo, hosted by Loyalty360. Allstate walked away with three awards: A Gold in the Best Customer Insight in Customer Experience category; a Silver in the Best Technology & Trends in Customer Experience category; and a Bronze in the comprehensive 360-Degree.

Through the use of Drivewise− a telematics insurance program that rewards drivers for driving safely−and its integration with the company’s loyalty program−Allstate Rewards−Allstate wants to change the way customers perceive and interact with their insurance companies. By taking the extra step of allowing customers of other insurance companies to participate, Allstate hopes to kick-start brand loyalty in new policyholders.

Orlando Mercado, Allstate’s Product Management Director, believes introducing things like Allstate Rewards and Drivewise promotes more positive interaction.

“We’re new in the loyalty space,” Mercado said after the Loyalty360 CX Awards. “To be acknowledged is a big deal for us.”

Drivewise has been in the market for about five years. What’s unique to Allstate is that it was the first major insurer with a smartphone telematics app. The rewards network is expected to grow to about 1 million users by the end of 2015.

“Consumer expectations are being shaped by evolving technology,” Mercado explained. “You have to have an app now. It’s an expectation. Customers want to be safer and rewarded. This program gives them personal rewards. They are earned through safe driving challenges. Mobile technology enables a more robust customer experience.

Allstate partnered with Deluxe Rewards on its Allstate Rewards loyalty program.

“It’s giving our customers more tangible benefits,” Mercado said. “It gives you more frequent information about how safe you’re driving. We’re getting great feedback from the Drivewise program and 54% of our emails are being opened. It’s been an exciting journey for us.”

Allstate is the nation’s largest publicly held personal lines insurer, protecting about 16 million households from life’s uncertainties connected with automobiles, home, life, and other insurance offered through its Allstate, Esurance, Encompass, and Answer Financial brands.

Drivewise allows the company to monitor certain driving habits of everyone that downloads the app to their smartphones, regardless of insurance policy. The monitored habits include driving at high speeds, braking suddenly, and typical daily driving mileage. By driving safely, users earn points for use in the Allstate Rewards program and, in the case of Allstate customers, discounts on their auto insurance rate.

Allstate understands that customers may be reluctant to give an insurance company constant access to their driving behaviors. In the past, similar monitoring programs have led to higher rates for some customers. Mercado made it clear that Drivewise has no downside for drivers with the app.

“Users can only benefit from participating in Drivewise,” Mercado explained. “Other insurance companies have programs that will raise your insurance rate based on driving habits, but our program with only result in the rate either decreasing or staying the same.”

The Drivewise app is an impressive piece of technology, but its integration with Allstate Rewards puts it over the top in terms of CX. With the points earned from safe driving, customers can purchase brand-name merchandise from companies such as Apple, Oakley, and The North Face. The loyalty program also offers coupons for local businesses and discounted gift cards.

“Most customers listening had been around needs,” Mercado said. “Now, needs are around what can you offer me beyond simple coverage? We want to benefit people. We don’t penalize you. We only reward you.”

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