According to Global Payments, the combined spending power of Millennials and Gen Z is $350 billion in the U.S.
In the coming years, that number will continue to grow!
While it’s true that Millennials are buying homes much later than previous generations (partially due to crushing amounts of student debt and underemployment), 78% of them plan to buy a home before 2025. (Agency Nation)
That’s a lot of homes that will need coverage.
In 2015, survey results found that 72% of teens in the United States say they want to start their own business one day. (The Insurance Marketer)
That’s a lot of business owners that will need coverage.
If you’re still avoiding marketing to Millennials and Gen Z, the viability of your insurance agency is in danger.
Traditional servicing and marketing methods have been questioned when it comes to reaching these generations, which often results in a fair amount of pushback from people in the insurance industry.
What’s the best way to reach Millennials and Gen Zers?
It’s pretty simple, actually.
No, you (probably) don’t need to perform an entire overhaul of your lead generation, marketing strategy or agency processes, but you’ll need to have an open mind and a willingness to embrace some changes.
Selling to any target audience begins with a knowledge of what they value.
So, what’s important to Gen Z and Millennials when it comes to insurance?
Let’s get into it.
Customer Experience is King
A powerful insight from Invoice Cloud’s survey of millennial policyholders is that while they’re typically very loyal once they’ve established a relationship with a company or insurance agent, they won’t hesitate to switch insurers if the customer experience isn’t up to their expectations. (Insurance Thought Leadership)
What are their expectations, then, when it comes to customer experience?
Ease of access to their policy information (mobile apps)
Online/digital payment options
24/7 Customer service
AI support (think chatbots)
Convenient communication channels
Phone, text, email, social media, etc.
*Note that a direct phone call or in-person conversation with their agent is still the preferred method of communication once they’ve purchased a policy. (Ivans)
If your customer experience isn't up to their expectations, don't expect them to stay with you for long.
If you had a dollar for every time you’ve heard the sentiment that insurance is all about relationships, I’m willing to bet you’d have a lot of money.
The reason you’ve heard it, again and again, is because, as cliché as it sounds, it’s true.
That isn’t going to change any time soon.
Despite being digital natives, Gen Z and Millennials highly value human interaction. (The Insurance Marketer)
And even though both generations are more likely to buy insurance online, the majority of them still end up purchasing through an agent (that they find online.) (Macneill Group)
Where do most consumers go when they have a question or need a service?
87% turn to the internet. (Agency Nation)
As a millennial myself, I’ll admit. I google everything.
Anything from apartment hunting to IMDB searches for the actor in another movie that I can’t quite remember, WebMD searches, business’ operating hours, product reviews, and agency growth research for this blog. It’s all in my search history.
You must be where your target customers are; Gen Z and Millennials are online.
As an agency owner, having a solid online presence is like putting your agency in a high-traffic area in the proverbial “town” of the internet.
Online reviews significantly influence purchasing behavior; over half of young adults say they prefer product/service reviews from people they DO NOT know. (Agency Nation)
Along with having positive online reviews, connecting with these generations through social media has an impact. 62% of Millennials say that if a brand engages with them on social media, they’re more likely to become a loyal customer. (Agency Nation)
Educate, Educate, Educate.
Research is part of the buying process of any important product or service for Millennials and Gen Z alike.
Along with online research, 80% of consumers in these generations want their agent to help them understand insurance.
They’re also 3 times more likely to worry about “what if..” scenarios than baby boomers and gen x. (Macneill Group)
They want YOU, the insurance expert, to educate and advise them on their risks and coverage options.
They don’t just want you to handle it; they want to understand it themselves.
According to a study by Label Insight, transparency comes in at the top of customer loyalty factors for millennials, with 78% of them valuing it. (Insurance Thought Leadership)
Part of helping these generations have peace of mind is being completely transparent with them so they know exactly what they’re covered for.
This puts you in an ideal position to showcase the benefits and scenarios in which they might need specific types of insurance.
The hard sell isn’t the way to go. (Learn more about that here: How to Sell w/ out Selling - A Guide to Closing Sales w/ out Looking Like an Insurance Salesperson)
Knowledge is power.
Educating your customers empowers them to make insurance and financial decisions confidently - and their loyal nature will keep them with you for the long run. Remember, retention is crucial to grow your agency.
All of this is to say that you don’t have to throw out traditional processes of your agency retention and growth strategy - relationships are still essential for your business with older and younger generations alike.
Instead, utilize modern technology to enhance and strengthen your relationships with your clients and prospective clients.
And don't sleep on the huge opportunity to insure Millennials and Gen Z.
Your future self will thank you.