By now, your client base likely includes some young policyholders consisting of Millennials (ages 24–39) and possibly some older Gen Zers (ages 8–23). Millennials have already surpassed Baby Boomers as the largest generation, (72.1 million), with another 20 million Gen Z Americans right behind them. They are our future.
Whether you’re reaching out to them as prospective clients, or as agency staff/managers), the more you know about the young policyholder generations the better. Spoiler alert: technology plays a central role in their lives, making InsurTech solutions increasingly vital.
Where To Market To Young Policyholders
Let’s start with the obvious. Millennials and Gen Z (especially) are digital natives. They are used to multitasking with more than one digital device: Millennials up to three and Gen Zers up to five screens at once! That gives you multiple opportunities to engage with them on their mobile phone, tablet, laptop, desktop monitor and/or TV screen.
And what are they doing on these devices?
- They’re doing research, which includes reading and writing product/vendor/service provider reviews online.
- They’re making purchases and paying bills (ideally, including their insurance premiums).
- They’re checking out and logging into provider websites.
- They’re using apps. Gen Zers, in particular, are crazy for apps.
- They are active on multiple social media platforms. Facebook is an all-purpose choice. Businesspeople gravitate to LinkedIn. But to get in front of Gen Z you’ll need to be on Instagram (and their #1 love: Snapchat).
- They’re receptive to digital ads, but not overwhelmingly so.
What Young Policyholders Value
Convenience and authenticity top the list. Both generations are fans of on-demand services. Millennials are self-reliant and like to find answers on their own. FAQ sections and AI chatbots provide that autonomy. Gen Zers, on the other hand, balance their tech agility with a craving for personal attention. Often described as the loneliest generation, Gen Z welcomes a caring, human touch. For example, they prefer brick-and-mortar stores to buying online.
Convenience also means conducting business when, where and how they want. They demand digital…everything (document sharing and signing, digital payments, you name it). Paper is seen as an environmental no-no.
In terms of authenticity, it’s said that these generations can spot a phony from a mile away. So don’t attempt to use hipster phrases, and don’t market “to” them. Be your own brand, and make them feel a part of what you are doing. (Tip: Google “co-creation” for reference.)
How Young Policyholders Communicate
There are some differences of note in their communication styles.
Millennials process information through verbal and written language.They use IM (instant messaging), text and email.
Like Millennials, Gen Z use IM and text, along with social media (but not email) to keep in touch. Images and visual content are the way to interest them. YouTube is a favorite channel, and videos on websites work well, too. Bring them into your story.
But, like it or not, you have a very small window to capture both generations’ attention. Millennials average 12 seconds. For Gen Z, it’s only eight!
You may find it useful to compile buyer personas based on known psychographics as well as your agency’s experience with these generations. The key is to recognize the subtle and not-so-subtle differences and focus your engagement and client retention strategies accordingly.
How to Keep Them Loyal to Your Insurance Agency
If you’re a regular reader of our blog posts, these tips should be pretty familiar:
- Client-centric=mobile first. Stay away from old school media channels. These generations don’t use them.
- Be mindful of each generation’s technology and communication preferences.
- Provide a superior user experience (UX) across platforms.
- Emphasize solutions built on speed, security and availability (feel free to use ePayPolicy as your model for this!)
- Offer self-service options to honor their independence (e.g., FAQ, chatbots).
- Balance automation with human interactions. Gen Z, in particular, crave human breaks from all tech all the time
For those who absorb information visually, this nifty infographic summarizes several of the points above.
We also offer a series of articles on automating various client-facing functions:
You might want to (re)read these with these up-and-coming generations in mind.