Achieving success as an insurance broker involves a willingness to adapt to market changes. This means staying knowledgeable about new products and providers, but it also includes keeping a careful eye on demographic shifts. As the population changes, so too should your approach to marketing — what worked a decade or even five years ago may not be as effective for today’s consumer.
Millennials are the newest client base, and they now make up 35% of the American workforce1. They’re also on track to become the largest generation2 in the United States soon, surpassing the Baby Boomers. Clearly, millennials present a huge opportunity for brokers. Knowing how to reach them effectively and how they differ from previous generations can help your business find continued success.
3 tips for marketing to millennials
Build an online presence
Unlike their parents, millennials are less likely to shop for insurance in person with an agent and more likely to turn to the internet. According to a survey of 1,002 participants by CouponFollow, millennials make 60% of their purchases online3 and nearly 80% conduct online research before making any purchase, even if it’s in person. It’s important for brokers to adjust to this trend.
Brokers need a simple-to-navigate, well-designed, and mobile-optimized website at minimum. Without one, you’ll likely get glossed over by benefits buyers. Maintaining social media profiles also helps you build brand recognition and directly interact with potential and existing clients (more on that in our next here!). While word of mouth is still highly important, online reviews are now vital as well. Most millennials read online reviews4 before choosing a business or making a purchase. Encourage satisfied customers to leave reviews on Google and Yelp.
These tools are often your first impression on a potential customer in today’s market and can’t be overlooked. Once you have their attention, however, you have to keep it to cultivate a long-term relationship.
Be transparent and concise
Millennials are used to getting fast answers online. With so many brokers in the market, they’ll move on to the next option if they can’t get the information they’re looking for immediately. Show why you stand out on your homepage without overwhelming users with information. Make policy and pricing information easy to find, and provide a search function that lets potential and existing clients find the answers they don’t see right away.
Moreover, use simple and concise language online. Many people don’t know the finer details of insurance, especially younger millennials who are dealing with it for the first time. A wall of jargon-filled text will likely turn them away. Instead, give the short-and-sweet highlights of the value you can provide, the scope of coverage you offer, and pricing.
Utilize tech to improve the customer experience
Shopping for and managing an insurance policy isn’t glamorous. Make every step of the journey as stress-free as possible with something millennials have been immersed in for their entire lives: technology. As benefits buyers deal with an increasingly millennial workforce, they’re looking for brokers who offer tech-savvy solutions that make life easier for employees. Incorporating tech into your business — from marketing to implementation, enrollment, and administration — will draw clients to your business and provide long-term value that can lead to renewals.
Consider these differentiators:
- Create videos that explain clients’ insurance coverage and finer points that are commonly misunderstood.
- Provide quoting tools that let shoppers know what they’ll pay quickly. As a bonus, you’ll get their contact information and can follow up via email.
- Partner with tech-centric insurance providers that provide everyday value to members.
- Utilize an online portal and app where groups and members can research providers, view claim statuses and other documents, and make policy changes.
- Use e-signing tools to eliminate paperwork and speed up enrollment.
- Allow clients to set up recurring online payments so they have one less task to remember every month.
- Communicate announcements via email and texts — millennials’ preferred method of communication5 — rather than phone calls. This allows clients to respond on their own time instead of being interrupted.
Of course, not every millennial is the same, and clients will always require individualized approaches. But by understanding general trends with this generation and the continued movement toward online tech solutions, brokers can position themselves better for the future.