To woo Millennials, insurance agencies need to think outside the white picket fence
From casual dining chains to the diamond market, Millennials are faulted with delivering the death blow to dozens of traditional business models. The insurance industry is just the latest to be hobbled by these apparently cold-blooded consumers, but that doesn’t mean Millennials are here to end insurance agencies (or any other businesses) for good. They just want industries to keep up with their changing needs and goals.
Millennials face unparalleled financial strain caused by inflated educational loans and deflated wages and salaries. They also have a vivid memory of entering a saturated job market during the Great Recession, which makes them much more cost-conscious than more acquisitive Baby Boomers.
This cautious attitude results in an entirely different set of consumer behaviors than we’ve seen in previous generations. Millennials are waiting longer to start families, or they’re choosing not to start families at all. They’re more likely to rent than buy a home, to call an Uber than to purchase a car, and to cook at home than dine out. That makes Millennials a hard sell.
Rather than fearing this prudent approach to purchasing, the insurance industry should embrace Millennials. Risk-averse consumers are an insurance agency’s most cherished clients. Investing in changes that will win over Millennials will ultimately net independent agencies significant profits, and when you win over a Millennial, you win a loyal brand advocate who is much more likely than the average consumer to stick with your agency over the long haul.
Re-prioritize insurance products to align with Millennial priorities
Millennials aren’t making the same big purchases as previous generations of consumers, which means that insurance agencies need to prioritize products that coordinate with Millennial values. While they may not need home insurance, they’re driving up sales of renters insurance, according to the Insurance Information Institute, for example. As drivers of the Experience Economy, Millennials are also traveling more often, more widely, and for longer stretches than previous generations. That makes travel insurance more of a priority among the cohort.
But of course, like all other age groups, priorities vary among Millennials depending on their background, beliefs, and location. The best way to know what Millennials in your area are looking for in an insurance provider is to ask. Fortunately, taking the time to ask can actually put you in a favorable light with the relationship-focused cohort.
Put personalized interactions in first place
When it comes to Millennials, you’d do well to focus your efforts on personalization and relationship-building. While younger cohorts are less likely to pick up the phone, they’re more willing and eager than older generations to interact with brands online. Extend your agency’s platform to social media or use email marketing as a way to get in touch with Millennials and find out first-hand what their expectations and aspirations are.
Reflect the diversity of the Millennial experience in your marketing campaigns
The times they are a-changing, and your marketing content needs to reflect those changes. While traditional insurance marketing highlighted traditional values: the atomic family, the white picket fence, the 9 to 5 office job, campaigns developed for Millennials should showcase more modern values: community, collaboration, activism, and experiences, to name a few.
When you consider what Millennials deem important to a full life, it’s not hard to see that the kids are alright. They just need the support and security of an insurance agency that understands their goals and values. As an independent agency, you probably share many of those goals and values. Perhaps the best thing you can do to woo Millennials is to show how much you have in common.