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What’s your first association with a millennial? A 17-year-old boy without a regular income that watches Marvel movies and wants to travel the world? That’s totally wrong. It’s better to say about a grown man in his mid-thirties, with several credit cards, a deposit account, and a huge debt. And these men and women will conquer the world.
Millennials make up a large portion of the population. Marketing teams need to learn how to target them in order to boost sales. Entering the main spending years, millennials turn into a core customer group, particularly for insurers. This article is designed to help various marketers understand who millennials are, how they purchase stuff, and why they deserve close attention.
Understanding Millennials
Put very simply, millennials or Generation Y are people born from 1980 to the mid-1990s, e.g. 1994 or 1995. Exact dates aren’t set. So, different researchers interpret the generation time boundaries differently. The only thing everybody accepts is that millennials are children of the information era as they feel free with various digital technologies.
To sell anything to a customer, you should understand him or her. While traditional insurance groups often treat millennials in a wrong way, clients answer in the same manner. Relatively young and digital-friendly buyers think that insurance is something for old folk. Instead, millennials opt for innovative startup solutions, self-service tools, etc.
Generational Differences
Thus, let’s try to remove this generation gap. There are five major points in which millennials are different from other customers. Firstly, they are digital. They grow in a world full of information, digital tools, and market offers. That’s why they love tech, mostly. Millennial media involvement is on the rise because of the generation’s interest in technology. However, millennials also demand the highest quality and service. Millennials are also diverse. Millennials represent all the imaginable races. That’s why they seek respect and tolerance. They are smarter and have debts. Millennials acquire degrees more often than other generations which leads to higher student debt. They care about career opportunities. Thus, they buy insurance rarely and may want to make savings.
Additionally, they make big purchases later. Generation Y shifts the median home purchase age to 35 – the all-time record since 1970. That doesn’t mean that millennials avoid purchases. They just make them later. Youngsters prefer to invest in a business or relax. Younger generations also marry later. In the same age, only 26% of Gen Y members are married compared to 36% Gen Xers and 48% of Boomers. Our heroes enter the rooting phase later so the majority doesn’t require home/car insurance right now.
Overall, our heroes live fast, use digital stuff, and want to avoid tangled procedures. This means that insurers should evolve into helpers, not obstacles. Millennials don’t understand why they must wait days to get a quote, why they must visit offices or even talk on the phone. These things are redundant when you can buy a policy online in a few minutes.
Current Challenges For Insurance Marketers
From the generation questions, let’s move to current challenges for underwriters. They may sound a bit similar. It’s logical as millennials with their distinctive features reshape the insurance world:
- Knowledge shifts. Surprisingly, educated millennials ignore insurance knowledge bases. Often, they don’t understand the terms and believe in myths.
- Social shifts. As we’ve mentioned, society is changing. The most notable shifts are in the family, gender, and racial aspects.
- Technology shifts. New buyers look for digital-based interactions without phone calls and real meetings. They appreciate innovative companies.
- Trust shifts. Millennials want to protect their money and personal data. That’s why they choose insurers carefully, analyzing feedback and conditions.
Keeping these changes in mind, answer the question: are you ready to change? Old-fashioned companies have little to no chances to survive, sadly. Businesses should look for new interaction ways focused on millennials. Below, we list a few of them.
The Best Marketing Strategies
Well, if you’re ready, proceed to our list. It’s crystal clear that insurance teams as all enterprises want to earn money. To maximize revenue under current conditions, we suggest implementing new-age marketing strategies. Mostly, they rely on the needs and expectations of Generation Y.
Become Phygital
You know it: millennials are digital creatures. They use virtual assistants, access online platforms, and can’t live without their smartphones. Base your marketing strategies on this knowledge. Generate leads online, interact with customers through chats or emails, deliver fast solutions with core information only to catch the attention. But don’t forget about other users who love phones and meetings. Combine physical and digital. The key takeaway here is to invest in digital solutions, but don’t abandon traditional ones.
Cultivate Personal Attitude
Additionally, millennials set new trends where group personalization is insufficient. Today, insurers should target each particular customer independently. All people are different and when a user understands that you talk to him/her personally, he/she gives you bonus points. To implement this strategy, you should think about dedicated insurance product development, i.e. databases, tailored CRMs, etc. Remember that information is priceless. Target customers as persons, not only groups.
Engage In Interest Groups
Pairing with digital nature, social behavior is typical for millennials. They adore social media like Facebook, Instagram, and Twitter. They share experience, discuss stories, suggest brands or leave negative feedback. Often, Gen Y members join interest communities. They are really diverse: pet lovers, travelers, freelancers, etc. As a business representative, you should investigate these groups and join them to find your target audience. Study your customers and join their interest communities.
Sell Renter Insurance
Today, millennials can’t afford a new home, most often. They rent apartments and use carsharing options to live. However, they will not be rentals always because their income is grooving and marital statuses start changing. Soon, millennials will enter more stable phases. Insurers should use this moment. Start selling renters insurance packages to grow brand advocates. Later, your customers will order more advanced policies thanks to their loyalty. Start working with clients when they can’t afford costly policies.
Tell Honest Stories
Finally, millennials are nice psychologists. They feel a lie. And they aren’t ready to forgive it. With numerous alternative options, each insurance company has only one chance to convince a millennial to become its client. For this, treat content as the king. Polish your messages distributed by different channels and make them honest. Don’t be afraid to admit that your company isn’t ideal but tell that you’re trying to do the best. Be real. Keep your offers and value clear, honest, and useful.
Get us right, millennials aren’t the only customers of insurance companies. There are late Baby Boomers who also feel the need for proper insuring, as well as early members of Generation Z who begin adult life discovering the odd magic of mortgages and credits. Nevertheless, millennials are the most influential group nowadays. If any given insurance company wants to work with this cohort, it should understand Gen Y. And target it correctly.
