Caught you with that snazzy Progressive insurance tagline?
I used it because I was reminded of Progressive's promise to find you the best deal- even if it isn't their insurance.
Most people have always thought the novelty of comparing rates and then MAYBE sharing competitors information is counter-intuitive. However, the Progressive strategy coupled with their latest Flo campaigns where she describes the specific plans to customers illustrate the importance of catering to your audience.
I can think of an older example of "catering." Remember the Subservient Chicken from Burger King? You could plug in orders and the actor in the chicken suit does what you want. I don't think we want THAT much service.
More recently, Bridgestone Golf has created a new line of golf balls that are geared towards average players. Knowing that you can't hit like John Daly or Tiger Woods, why would you use the products they use? To advertise the balls, they have created an online interactive test HERE called a "ball fitting." Apparently, they do this in person by having you swing and analyze you to find the right ball. They also apparently are not afraid to tell you to try another brand.
That's customer service! Not only do you listen, understand, react accordingly, but if your service or product isn't the right fit, you direct them where to go. Does it mean they will? Maybe not, but ideally, you have now not only NOT alienated a customer, but perpetuated a prospect.
Now that's progressive.