Only Geckos Were Polled?
Geico, the big auto insurer owned by Warren E. Buffett’s Berkshire Hathaway, spends lavishly to advertise an animated gecko and “97% customer satisfaction.” But the company refuses to produce documentation backing up that lofty number, calling the data “highly confidential.” In a statement, the firm says the figure comes from surveys it commissioned. But Geico won’t specify the margin of error or its definition of a satisfied customer, and it won’t say whether departing customers were surveyed or if it’s sitting on less favorable studies. Berkshire’s 2000 annual report contained raw numbers—the last such compilation easily available to the public, which Geico declines to update—suggesting a 25% annual customer turnover. On a scale from zero to 100, the University of Michigan’s annual American Customer Satisfaction Index just rated Geico at 78—below State Farm’s 81. Geico says it’s unfair to cite such other statistics.—William P. Barrett
COPYRIGHT 2005 Forbes, Inc.
Forbes, Vol. 175, Issue. 5, p 36 03-14-2005
By William P. Barrett, Tatiana Serafin, Janet Novack, and Dirk Smillie
Boo Geico