When it comes to purchasing behavior, millennials and boomers are way different. Millennials value the buying experience alongside the product whereas boomers fixate on the product alone. Research shows that unlike boomers, millennials think short-term and don’t respond to traditional advertising methods.
These findings are crucial because they speak volumes about millennial consumers. These findings also give insurance companies a hint of how they should deal with millennial consumers.
Here are some effective tips:
Highlight discount offers
Millennials favor discounts and giveaways. A company called Excentus conducted an IPSOS survey of more than 1000 US consumers about favorite loyalty schemes and reward programs. The survey showed that 78% of millennials would switch brand preference if they were offered a discount on gasoline compared to only 51% of boomers.
Additional research by eMarketer reported on how US millennials have been emerging as big-time coupon redeemers. To attract millennial customers, insurance companies need to offer good discounts. They should improve existing offers and dish out something new that’s convenient and money-saving to their clients.
That being said, the offer shouldn’t be just a quick one part deal. Millennials do want discounts but only when it’s part of a deal. An insurance policy should touch on one or more aspects of Millennial lifestyle, so it appeals to them.
The trick to convince
Among the qualities that millennials want in brands, one is transparency. An insurance agency Rochester NY once gave inaccurate information to one of its millennial customers. When the customer found out the offer was actuallynot exactly as promised, he published negative reviews about the company and its clientele shrunk.
Hence, when dealing with millennials, take into account the following:
- Why millennials need insurance: Explain it to them. Make sure it’s a logical explanation. Millennials don’t save enough, which is why excellent home or auto insurance coverage is very important to have.
- Understand customized needs: Each millennial customer is different from the other. So understand their individual needs and suggest a policy accordingly.
- What should they insure: Review their needs. Perhaps it is a car, a home or a business. Millennials are entrepreneurial in nature and will want the education to make a good insurance decision.
Understanding millennials is the key to convincing them to buy proper insurance. So get yourself data and stat figures on millennial behavior, and gauge which strategies will work best.
The agent’s personality matters
Millennials value the buying experience as much as they value the product. It’s been found again and again, and by survey after survey, that the agent should only promise what he can deliver. Describe the actual benefits of having a policy.
The agent should be experienced and have an understanding of the generation he is selling to. Millennials generally bond well with people from the same age group. If the agent is not in the 35-40 year old age group, but has a real understanding of the thinking of a millennial, he or she will have a good chance of impressing millennial customers.
Millennials prefer independent agents because agents representing one company sometimes do not mention what else is out there in the market. With independent agents, such a scenario is unlikely to occur. Independent agents work with more than one insurance carrier, meaning greater access and being able to compare policies. Millennials love choice.
Hence, hire independent agents for millennial customers.
Explain the fineprint
Millennials have a history of blaming others for their own failure according to RedState. They have even published an article to explain why millennials need to stop blaming others.
Now, how is this relevant to insurance companies?
A millennial customer may miss crucial points in the fine print, and they may later blame the insurance company for it.
Can that hurt the company’s business?
Yes, it can.
More than 80% of people read online reviews these days before purchasing something. It can be difficult or misleading to distinguish dissatisfied customers venting their frustration from genuine reviews, which means negative reviews (genuine or not) can put stress on a company’s reputation.
To be on the safe side, insurance personnel should review in detail the terms and conditions in the fineprint to millennial customers. If possible, email a copy of the fineprint to their customers for review prior to purchase. This is to make sure they understand all the provisions prior to the purchase.
Build a mobile presence
What happens when an insurance company lacks a presence in the mobile domain?
It fails to net millennial customers. Millennials access the internet primarily via handheld devices. According to Google,. Hence, an easy way to reach millennials is to build a solid mobile presence.
As a matter of fact, you may not even need a website, and sometimes an app can suffice. Building a mobile-friendly website requires the use of responsive design. With a downloadable app, you can reach out to millennial prospects easily.
It is important to build a FAQ section on the app. The last thing you want is uninformed or misinformed millennials on the mobile space.
Finance analysts believe the future belongs to millennials. While that may be hyperbole, millennials are undoubtedly an influential marketing group. Their increasing purchasing capacity and aversion to insurance makes them excellent marketing targets for insurance companies. Follow the five tips described here and you may have increased odds of attracting them.