1. How does USAA enhance consumer motivation by making itself and its offerings personally relevant to customers? USAA (United States Automobile Association) maintains only one bank branch to serve more than 8 million consumers worldwide, yet it boasts a 98 percent customer retention rate and often ranks way ahead of competitors in surveys of customer service and satisfaction.

Hundreds of banks, brokerage firms, and other financial services firms offer checking and savings accounts, insurance, mortgage loans, and credit cards;

some of these have extensive branch systems and ATM networks. So why do consumers choose USAA—and why do they remain customers, year after year?

USAA specializes in serving military personnel and their families, including those on active duty and those who have left the military due to retirement or honorable separation. Although some of its products are available to the general public, the firm’s marketing efforts are primarily geared toward consumers in uniform and their spouses and children. Many of these consumers have much in common with nonmilitary consumers: They marry, start a family, buy cars or trucks, look forward to buying a home, save for their children’s college education, and as retirement approaches, worry about financial security. However, consumers in this segment also face difficult challenges unique to the military life, such as being deployed many miles from home, frequent or unexpected transfers, lengthy separations from family members, and eventual transition to civilian life.