Marketing to Millennials
For insurance agents looking to target consumers for various insurance products, how you target each market segment can define whether your campaign succeeds or fails. Consumers can be divided into many different categories based on their needs, age, and income status. Who your consumer is dictates the product they will purchase and approaching a consumer who is not a candidate for the product you are offering is a waste of time and resources.
One of the newest and most glaring examples of marketing strategies is the way in which agents should target and market to millennials. When we attempt to sell insurance based on the age group of the consumer, how we communicate to them should become a priority consideration.
How Millennials Differ
You don’t have to be a millennial to market to them. Millennials (born 1980 and later) are willing to consider products like any other age group, but agents must communicate with them on their terms.
- Do Not Waste Their Time: Millennials tend to stay busy. They consider their time a valuable commodity. They understand that they can do business with a direct writer and eliminate an agent who encroaches on their time with marketing phone calls and colorful email blasts. This is what can make marketing to millennials seem daunting. Millennials do believe, however, that a trusted advisor can become their advocate as long as they conduct business on their terms rather than what the agent is accustom to.
- Digital Only: Typically, a millennial will not visit your office or use a fax machine for signing documents. Millennials prefer to e-sign all documents and will likely never refer to them again unless there is a loss to deal with. They understand that something as mundane as insurance can be purchased directly from a carrier and that agents may or may not be beneficial to the transaction. Knowing this, agents who market to millennials should continually demonstrate their ability to bring expertise and guidance to the relationship.
- Product Comprehension: Being younger consumers, millennials may not understand all of the nuances of insurance terms and coverages, but they want to be informed. Not by five pages of FAQs that typically accompany standard insurance company letters or emails, but by the availability to quickly search an online database for quick answers to questions that concern them. Agents should consider that young consumers may not be aware of the risks that are a part of everyday life. Knowing this, they should access the tools that millennials use every day like social media to communicate a message regarding risks that are typical to millennials and then offer affordable solutions.
- To Convert Them You Must Convince Them: Millennials are aware there are many insurance options available to them because they are bombarded everyday with marketing pieces from insurers and agents. They probably don’t understand the difference between buying from an agent or buying direct and probably don’t care. They consider themselves above average intellectually and will typically scoff at insurance commercials and consider them entertaining but not informative. When marketing to millennials, the goal should be to educate them (as with any consumer) about the exposure that results from carrying their state’s minimum coverage and convince them that you are their best avenue for information and resources.
Without a doubt, successful agents and brokers need to develop marketing skills that will allow them to market to the various consumer groups effectively and affordably. Not understanding how different consumer groups prefer to become informed and then transact a purchase will result in lackluster marketing campaigns and a significant waste of resources. Before you spend your money putting a billboard on the moon that no one will see or much less respond to, spend some money and time learning about consumer behavior and how they prefer to be approached.