Most auto-insurance companies have priced their services in the same way for the last century. They charge customers an annual premium for unlimited driving which depends on the driver's age, vehicle, and driving history among other factors.
companies have priced their services in the same way, charging customers an annual premium for unlimited driving. The premium varies depending on a driver’s age, vehicle, driving history, estimated annual mileage, coverage levels, and other factors, but the basic pricing scheme—an annual premium—has been an industry standard.
In 2016 Allstate introduced another innovation, Milewise, aimed at customers who don’t drive frequently. Instead of fixed annual premiums, Milewise customers pay a low daily rate for insurance coverage, plus a per-mile fee based on actual driving . Drivers who sign up for Milewise see premiums drop by 50%, on average.
Technologies that are now commonplace—such as GPS, smartphone apps, predictive analytics, and AI—make it easier than ever to design and use new pricing models. Changing your pricing strategy can also help you target different demographic groups. For instance, research shows that Millennials and Gen Zers are especially open to no-haggle pricing and to renting or leasing as an alternative to owning. Additionally, announcing a pricing change can generate excitement: When Subway introduced $5 footlong sandwiches in response to the Great Recession, same-store revenues jumped an average of 25% in two weeks.
For products or services subject to price swings, offering customers a way to guarantee a future price could prove attractive.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
2023 Toyota Tacoma Review, Pricing, and SpecsThe 2023 Toyota Tacoma is a senior citizen after eight years without big changes, but its off-road chops and customizability won’t ever get old.
Leer más »
With supply chain issues, companies like Nike haven't had pricing promotions, says Oppenheimer's NagelBrian Nagel, Oppenheimer analyst, joins 'The Exchange' to preview Nike's earnings report and what key metrics to look for. Nagel also takes a look at the home improvement and retail sectors as the holiday season comes to a close.
Leer más »
S.F. to expand emergency psych options for youthSan Francisco was among 54 awardees this year under the state grant program to build out behavioral health facilities for youth.
Leer más »
Applied Materials to expand manufacturing in Silicon Valley, TexasApplied Materials Inc. said late Tuesday it plans to make “multi-billion-dollar investments” to expand its manufacturing capacity between now and 2030. The...
Leer más »
Police seize on COVID-19 tech to expand global surveillanceThe AP traced how tech to fight COVID-19 has been co-opted. Just as 9/11 changed the balance between privacy and national security, the pandemic gave officials justification to embed tracking tools in society in ways that may last long after lockdowns.
Leer más »