The largest generation in the United States is also the most
underinsured. Millennials are at conflict when it comes to insurance
shopping: While they are twice as likely as other groups to purchase
insurance online, they are also the group least satisfied with the
Millennials are born multitaskers who crave the speed and convenience of
shopping on the Internet. At the same time, they want personalized
experiences that recognize their individuality. On the surface, these
seem like dueling concepts. In fact, only 24 percent of Millennials
purchase insurance from local agencies. How can you get personal when
you’ll likely never see your customers’ faces?
Strong customer relationships are possible in the Internet age; they
just require a more creative approach. Here are four things insurance
companies can do to better engage and build loyalty with Millennial
- Be more than a brand. As the “social
responsibility generation,” Millennials intrinsically distrust big
brands. They won’t jump on board because of a familiar name; they want
to align themselves with companies that view the world as they do.
Millennials have strong b.s. detectors, and they’re always on. They know
when a company’s only goal is to make a sale. A deeper reason should
exist for Millennial customers to see that being a part of your brand’s
story will contribute to their own image and ideals. Maybe this policy
is truly the best fit, or your company has better ethics than
competitors — or perhaps when you say your customer service is
unmatched, you really mean it.
- Educate and serve before you sell, but not too much. Because
Millennials are inherently wary of the hard sell, don’t jump right to
the close. Focus on the process — a moderate amount of education and
relationship building will go a long way to both landing a sale and
building long-term customer loyalty and trust.
However, be careful not to turn your website into a graduate thesis on
insurance. Too little education puts you at risk for errors and
omissions, but too much education devalues your purpose as an industry
guide and can turn the consumer off with confusing industry lingo.
Consider yourself a well-informed concierge — offer just the right
amount of expert information in a way that’s clear to someone unfamiliar
with the territory.
- Make your business approachable.
Frankly, to the average person, insurance is boring. It will always be a
to-do list item your customer would rather not do. It’s up to you to
make the experience as simple, painless — and yes — even as enjoyable as
“Because we’ve always done it this way” is the enemy of innovation. Be
creative with how you approach customers and what services you offer.
Design a more user-friendly website or mobile app, a fun approach to
emails, or a lighter company voice — even the driest industries can have
a little fun. Just be careful not to go overboard with the trendy
- Build relationships for the long haul. Real
relationships aren’t one-night stands. Stay in touch with your
consumers over time — not with gimmicky advertising or blatant
sponsorships, but with thoughtful and relevant touchpoints.
Did a young married couple just swap out a coupe for a minivan? Send
them an article reviewing the best car seats in the market. Did a recent
graduate purchase renters insurance for the first time? Offer content
on the top 10 things all new renters need to know. Provide personalized
value to your consumers, and you will naturally earn their engagement.
The Millennial generation is the insurance carriers’ biggest opportunity
and biggest threat. With innovation, empathy, and thoughtful planning,
carriers and agents can evolve to meet the needs of the digital