The MSW TBSM tracking service measures brand preference as one component of the survey.  Using TBSM Auto Insurance category data, changes in brand preference results between 2021 and 2023 were computed for individual brands.  Our Chart of the Week displays these results for the three top players in the US Auto Insurance market: State Farm, Geico and Progressive.

In addition to this brand preference data, this week’s chart includes the change in market share (between 2021 and 2023) for each of the top competitors as computed from annual published data from the National Association of Insurance Commissioners.

• Between 2021 and 2023, State Farm realized gains in both brand preference and market share of over two percentage points.
• Similarly, Progressive also achieved increases in both brand preference and market share of around one and a half percentage points.
• For Geico, brand preference was flat while market share decreased close to two percentage points.
• Brand preference for State Farm and Progressive tracked market share very closely. This is expected given previous studies which demonstrate the close relationship between preference and market share. In fact, independent studies conducted by the Marketing Accountability Standards Board (MASB) have found that preference proved to be a better fit to sales and market share than any other standard research question examined.
• Geico experienced less favorable market share results than might be expected from the unchanged level of brand preference. There are two reasons for this: price and level of advertising spend.
• The MASB research also demonstrated that including price along with brand preference provides an even better prediction of market share. These studies demonstrated that an increase in brand preference can translate into either a gain in market share or the ability to charge a price premium at the same market share level.
• According to data from S&P Global, over the time period from 2018 through 2023, Geico’s rates increased substantially more than their competitors. And in 2022, the year where all insurers started making large increases in rates due to increased losses due to inflation and other post-pandemic factors, Geico increased rates much more than State Farm or Progressive:

• Due to the same profitability issues, automobile insurance companies also cut back on advertising spend starting in 2022. While 2023 figures are not yet available, a report from AM best showed that Geico cut back on advertising spend much more than did either State Farm or Geico:

• The combination of a much larger increase in rates and much larger cut back in advertising spend explain why Geico experienced a drop in market share between 2021 and 2023 despite an unchanged level of brand preference.

In the realm of successful brands, one thing stands out: distinctive brand assets.

Whether it’s a memorable color, logo, design, or jingle, these cues aid in memory encoding and signal availability.

Yet, the true value of these assets lies in the eyes of consumers. They expect a return on their investment in terms of time, money, and performance.

And it’s precisely this value that can be measured and cultivated for growth.

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Instead, brands must tap into emotional needs and foster emotional intimacy to truly stand out.

Enter MSW Research’s Brand Preference—the compass guiding brands toward success.

By prioritizing activities against competitors and leveraging distinctive brand assets, brands can boost usage and loyalty.

It’s not just about branding, it’s about strategic branding for margin growth.

In the world of brands, loyalty reigns supreme.

Yet, the truth is, most consumers aren’t loyal to any single brand.

At MSW Research, we delve beyond behavioral loyalty, focusing on attitudinal loyalty—the kind that makes a brand their top choice, their go-to.

Our research reveals a stark reality: only half of all customers feel loyal to any brand.

The rest? They’re swayed by availability, promotions, or simply a desire for variety.

It’s easy to fall into the trap of prioritizing short-term promotions to retain customers, but this strategy often backfires, eroding brand stature and impeding long-term growth.

That’s where MSW’s Brand Preference comes in.

By leveraging our solutions, you gain the insights needed to accurately project loyalty levels, assess market value, and attribute brand growth to various marketing activities.

Don’t just chase fleeting loyalty, cultivate enduring brand preference.