Tips to reach growing (and maturing) segments
Between them, Millennials and Gen Z already represent 42% of the U.S. population. They are rapidly reaching the age where financial planning is necessary, and are accumulating more and more purchasing power. What else would you want in a growth opportunity for health, home, auto, and specialty insurance products?
Not so fast. These new audiences are different than their forbears. They subscribe to different value systems. They look at finances and financial security in unique ways. And just because they are digital natives, they don’t trust or value marketing just because it is delivered online.
Want to capture the attention of this cohort with your insurance marketing? The answer is to be SURE—Straightforward, User-centric, Reassuring, and Engaging.
Straightforward. Millennials and Gen Z are hyper-sensitive to authenticity and transparency in marketing. As the ability to customize products and marketing through AI grows, insurers need to be open about what goes into their pricing and business models. Be straightforward: first, acknowledge what is happening, demonstrate the why, and show how it can benefit the customer.
For example, data from apps already on a driver’s phone may be used to calculate risk without a user’s knowledge. Show how tracking safe driving can reduce premium costs. Similarly, extreme weather is pushing up home and specialty insurance claims. Be overt so customers understand that higher premiums now help ensure that payout obligations can be met in the future.
User-centric. Millennials and Gen Z expect a seamless user experience from the first ad or social post through to purchasing a policy. As digital natives they are more independent, financially savvy, used to shopping online, and comfortable making decisions without salespeople or brokers.
Gone are the days when a newly-licensed 16-year-old would automatically inherit a parent’s auto insurance brand. Gig workers often have no employer-paid health insurance, and must shop for their own. However, Millennials and Gen Z also have their attention pulled in multiple directions by social media, favorite apps, and personalized ads. Be User-centric; employ easy-to-understand language that quickly educates a user about benefits, allows them to compare options, and makes them feel good about their well-informed decision.
Reassuring. Millennials and Gen Z are the most anxious and stressed generations ever to walk the planet—especially surrounding their finances. They feel that they have had to overcome more than their parents did, and they can be defeatist about milestones that continue to elude them, such as homeownership.
Brands that develop a positive relationships with these consumers early on will have a better chance of growing with them through life stages and insurance needs. Be Reassuring. Acknowledge their individuality and unique experiences—without pandering. Offer messaging that recognizes the realities facing them in a way that’s simple, true to your brand, and creates transparency. Demonstrate the immediate and unique benefit of a product—for example in health insurance, lower copays, easily accessible virtual care options, and better mental health coverage. Show that the best long-term value and financial security provided by a homeowner’s or flood insurance policy may be more important than the lowest premium.
Engaging. Social media tops the charts for entertainment and information for Millennials and Gen Z—only falling behind streaming content for total consumption. To win on social media, brands must be interesting and on-trend. They must move quickly and take risks—not a core competency for insurers and financial services providers.
Be Engaging. 72% of Millennials and Gen Z enjoy funny ads that introduce them to a new—even serious—topic. Even if a funny ad doesn’t “go viral” the willingness to take some chances will engage younger consumers. Skeptical of traditional advertising, Millennials and Gen Z will respond to relatable storytelling.
Of course, there are additional nuances and factors to marketing insurance to Millennials and Gen Z. Neither are these groups monolithic, and the wise advertiser is attuned to subgroupings and varied attributes.
But are there reliable criteria that can help you evaluate and plan effective marketing to young consumers? SURE there are. And if Yes& can help you to activate Millennials and Gen Z insurance buyers, please reach out. We’re sure we can assist.