Selling Insurance to Millennials: What You Need to Know
When selling auto insurance to millennials, it’s important for insurance agents to understand the unique needs and preferences of this large demographic. Here are some tips on how insurance agents should ideally sell to millennials.
Understanding the Millennial Demographic
The millennial generation, also known as Gen Y, generally refers to people born between 1981 and 1996. This generation is often characterized as being tech-savvy, socially conscious, and diverse. Key demographic traits of the millennial generation you should watch for are:
- Size: Millennials are the largest generation in history, with an estimated 72.1 million people in the United States alone.
- Diversity: The millennial generation is the most diverse in U.S. history, with a larger share of non-white individuals than previous generations.
- Education: Millennials are the most educated generation in history, with a higher percentage of college graduates than previous generations.
- Employment: Many millennials entered the workforce during the Great Recession, which had a significant impact on their job prospects and earning potential. As a result, millennials are often characterized as being underemployed or facing financial challenges.
- Technology: Millennials are often referred to as “digital natives” because they grew up with technology and are comfortable using digital devices and social media.
- Social consciousness: Millennials are often socially conscious and politically engaged, with a strong interest in social justice and environmental issues.
Overall, the millennial generation is a large, diverse, and tech-savvy group. As the largest demographic, they need lots of insurance.
- Emphasize the Value of Insurance
Many millennials don’t see the immediate value of insurance, so it’s essential for agents to explain how insurance can protect their assets and provide financial security in the event of unforeseen events.
Consider explaining to this market segment the difference between self-insurance via savings vehicles and how insurance like liability helps to protect those assets that they cannot self-insure.
- Act with Transparency and Honesty
They also value transparency and honesty, so agents should be upfront about the coverage options, costs, and any insurance policy limitations.
Be careful not to mislead them unintentionally, because they grew up on the tail end of mass marketing schemes and can detect a scam from a mile away.
- Prepare to be Fact-Checked
The Internet has been effective at providing a backstop for claims that agents make to their clients. Remember that this population can use the information at their disposal to determine if what you’re telling them is the truth.
- Make the Selling Process Straightforward
Your clients want a hassle-free experience when buying insurance. You should make the process as simple and streamlined as possible, with minimal paperwork and quick turnaround times.
Remember, millennials (and zoomers) are accustomed to getting what they need with minimal fuss on the web. If you force them to jump through hoops or make use of old tech such as fax machines, it’ll be harder to make the sale.
- Don’t Rely Just on Your Phone
The first device a member of this generation reaches for is their smartphone, using text message platforms such as SMS and iMessage to communicate. The last thing any millennial wants to do is make or receive a phone call.
Meet this market where they are by using text messages, emails, and messaging platforms like Discord and Slack. This generation also wants a quick response to their questions, so make sure that you reply to them promptly through these channels.
- Use New Technology Where Possible
You’re dealing with a tech-savvy generation, so you should leverage digital channels like email, social media, and online chat.
For document signing, consider using a digital service like DocuSign or another equivalent software. Product information should be shared as HTML with responsive design rather than in PDF format.
When collecting information from your clients, use secure services and don’t store personal information in “flat files” such as plain-text emails or other unencrypted stores.
Finally, ensure that your clients can pay with new fintech services such as Venmo and other forms of peer-to-peer transaction services. This generation doesn’t write checks or like to use cash or the postal service to send money.
Tailor Your Policies to Millennial Driving Habits
Various scientific research studies have confirmed that members of this generation tend to drive less than their Gen X and Baby Boomer predecessors. Because they drive less and possibly spend less on their vehicles, they’ll want to get a good deal on their policy premiums.
See if you can work with your underwriter to offer a policy that makes sense for a driver with lower mileage per year. By emphasizing to your millennial clients that you understand their driving habits, you can more effectively close a sale.
What to Avoid When Selling to Millennials
When selling to millennials, it’s important to avoid certain tactics that can turn them off and harm your chances of building a long-term relationship. Here are some things to avoid:
- Being too salesy: Millennials don’t like aggressive sales tactics, so it’s important to focus on building a relationship rather than pushing a sale.
- Using outdated marketing tactics: Millennials are often turned off by traditional advertising methods, such as television commercials and print ads. Instead, focus on social media, influencer marketing, and other digital channels.
- Failing to communicate value: These folks want to know the value of what they’re buying, so it’s important to clearly explain the benefits of your product or service.
- Inauthenticity: Your clients value authenticity and transparency, so be honest and genuine in your interactions with them.
- Ignoring social responsibility: This group is often socially conscious and cares about issues like sustainability and social justice.
- Being too formal: Millennials prefer a more casual and relaxed tone, so avoid using overly formal language and rigid sales scripts.
Sell Auto Insurance Designed for Millennials Today
Selling to millennials can be among the most efficient sales you’ll ever make. Use these steps as a guideline to increase your success. Bluefire Insurance can help you on the back end with affordable auto insurance for this rapidly growing market segment. Reach out online today or over the phone at 866-424-9511 for more information!
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