PTVCB - Progressive sees edge over insure-techs in customer acquisition costs

Progressive ([[PGR]] +1.6%) believes its in-house media buying gives it an edge over insure-tech firms in keeping down costs for acquiring new customers, said CEO Tricia Griffith and Chef Financial Officer John Sauerland in its Q4 earnings call."We believe our very reasonable acquisition costs are much lower than insure-techs," Griffith said.While its advertising spending is going up, the company is "continuing to be very efficient in getting to the customer set we are after," Sauerland added.Progressive applies that discipline in how it achieves its growth as well. Whenever it wants to expand into another area it considers whether it should "buy, build, or partner." "We prefer to grow organically," Griffith said.Earlier this month, it decided that acquiring Protective Insurance (PTVCB) was the way to go to help the company expand its commercial lines to support larger fleets and add to workers' comp coverage for the transportation industry.

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Progressive sees edge over insure-techs in customer acquisition costs