In previous posts, we profiled millennials and explained why they are the next big insurance market. Why then are they still relatively absent consumers in the industry? Why is it that only 64% of millennials have car insurance, 10% have homeowner’s insurance and 13% have renter’s?1
The upper bound of the millennial cohort is approaching its early thirties, a time when the need for insurance will become clearer. That means they should be ready to buy from you. But they will not go out of their way to start the conversation. So, how can you get your message across to them?
The Importance of Mobile and Online Shopping
Millennials are online consumers. They are more likely than any prior generation to purchase through connected devices. A recent study found that 85% of millennials own a smartphone, and 53% prefer to use them to shop online. 2
The mobile experience you provide is critical if you want to sell to millennials. If you don’t have a mobile strategy, you should start creating one. One study found that perceived mobile usefulness and ease-of-use influence shopping attitude and purchase intent.1 Millennials may be ready to buy insurance, but won’t if your mobile experience doesn’t provide enjoyment and ease-of-use.
The Right Marketing Strategy
While millennials may not be flocking to insurance, they will soon. And you should be setting yourself up to attract their business.
Since millennials spend a lot of time on their phones, invest in a mobile marketing strategy to reach this underserved consumer group. Millennials reject heavy ad-based messages,2 but are open to messages that communicate value. Instead of advertising hype, deliver a message that explains the benefits of insurance.
If you’re looking for growth in our highly competitive market, consider marketing to millennial business owners. They’re an expanding segment of the small business market. A mobile marketing program on Facebook and Instagram is a great way to attract millennials who need a BOP policy.
The content you provide on your website is important to millennials, too. As newcomers to insurance, they will research before they shop. Build your credibility with content that demonstrates your industry expertise. And offer up that knowledge in a form that helps your visitors through the buying process.
The Right Millennial Platform
Some insurance companies have already engaged with millennials. Travelers, for example, created an online personal insurance product for millennials which is a “mobile [and] completely digital platform.”3 And they aren’t the first company to move into mobile. Lemonade has been a media darling because of its heavy use of mobile and artificial intelligence (AI), and before them many others have tried.
How can insurance companies get it right? Look to the experts. One of our previous posts explored the design strategies of companies like Facebook, Amazon and Google and what insurers can learn from them. They know millennials are the largest buying cohort and they’ve created mobile experiences that attract them.
Start by asking the right questions. Do you have a flexible portal that can receive the data you need to speed up a prospective insured’s sale? Is it quick and easy to get a quote? When your millennial prospects click on your mobile ad, are they sent to a website that guides them through the application?
Keeping in mind that perceived usefulness and ease-of-use are paramount if you want to serve millennials. Prioritize functionality and authenticity. If you say you can generate an online quote, make sure your portal and underwriting system features AI-enabled tasks to get the prospect started.
The Right Combination
The marketing and tech needs of the millennial generation are clearly different from those of their predecessors. Millennials true digital natives. In the same way Netflix and Uber revolutionized their industries, insurers that prioritize mobile and digital will rise to the top in the race for the millennial dollar.
Chris Mason is, by his own admission, a millennial as well as a Senior Marketing Associate for Instec. He has 5+ years of marketing experience, and a unique view of the insurance marketplace as a recent graduate of Marquette University in 2012. He volunteers with the IASA, working as a Lead Producer for webinars put on by their eLearning Committee.