Millennials tend to experience classic life milestones much later in life than previous generations or not at all, which is a problem for insurance agencies. They are experiencing the conundrum that most mature businesses face when it comes to millennials, and that is how to market to them.
Unlike previous generations, millennials, saddled with student debt, are staying at home until much later in life. And even when they do move out, many are opting to rent, as home ownership has become less important than in decades past.
Compared to their parents, millennials get married later in life and also have fewer children. Thanks to the 2008 economic meltdown, many were also forced to take jobs that were not in line with their intended career aspirations, meaning they’re not yet earning the salaries they imagined they would be earning.
Experiences > Possessions
Growing up, millennials witnessed their parents buying a lot of toys like boats, RVs and motorcycles, but what they didn’t see their parents doing was travelling, except maybe for a family road trip that was considered to be a vacation.
Paying for all those toys meant working a lot, which lead to a work/life imbalance for their parents, and many millennials have vowed not to choose excessive work and material possessions over personal time and seeing the world.
This disdain for collecting possessions helps to explain why the shared economy is booming and why services like Uber, WeWork and Airbnb have exploded in popularity.
Recent research from the Harris Group has found that 72% of millennials value experiences over possessions and it’s not just them. Even retired baby boomers are opting to downsize their homes and get rid of some of their excess possessions like second cars.
Give Them What They Want
If millennials covet experiences, it seems the answer to marketing to them is clear: Give them an experience when selling insurance to them.
Some retail outlets have already started making shopping into more of an experience, with Macy’s adding things like mini-concerts, cafes and yoga classes inside its stores to help drive customers there.
But, when you go to a retail store, it’s to buy tangible items. How can you make something intangible like insurance interesting to millennials?
- Experiences – First, like Macy’s, you can satisfy their longing for experiences by making your offices into a destination rather than just an office. Now, you may balk at the idea of hosting a yoga class, but little touches like free wifi, phone charging stations and offering beverages besides just a water cooler in the corner can help draw in a younger crowd. Maybe hosting guest speakers on subjects they’re interested in or a monthly book club meeting could get them through the door.
- Philanthropy – Millennials are a conscientious bunch who like to get involved with social issues like the environment or other causes. Sponsoring or organizing some kind of fundraising effort would be a good way to connect with them.
- Activities – Rather than focusing on home or auto insurance, when it comes to millennials, look at what they’re doing and focus on the importance of having personal insurance when partaking in the active hobbies they pursue like kayaking, rock climbing or cycling. Also, travel insurance is an obvious one for millennials.
- Tools – Traditional TV and print advertising isn’t going to cut it when trying to reach millennials. You’ll need to be where they are. Consider YouTube advertising and make a simple app for your agency that offers something useful to those who download it, like some kind of insurance calculator or a similar tool.
Marketing to millennials need not be difficult. One way you can get more insight into their thinking and what they deem important is to have some on staff. If you don’t have any on staff already, hiring some millennials will give you a resource to draw from when planning your marketing endeavors.
Insurance agencies need to adapt to the new normal that is the industry now that millennials are going to be the main source of revenue. As always, the first rule of marketing still applies: Know your audience. To know that audience, you’ll need a smooth-running operation. And to help you run your agency as efficiently as you can, Evolution Agency Management software has been tailored to be flexible, secure and easy-to-use.
Please visit us to book a demo today to find out how we can help your insurance agency run as smoothly as possible.