For now, a small percentage of your clients may be Millennials. But this will change as the Millennials are the kids of the now Baby Boomers. Who will inherit the wealth which you have assisted their parents with growing and protecting. And in 2017, Millennials will outspend baby boomers.In 2017, Millennials will have more spending power than any other age group. #lifeinsurance Click To Tweet
Millennials, born between 1980 and 2000 (approximately 20 to 37 years old), seem to be a difficult market to tap into across industries. Including the life insurance space. Traditional sales and marketing tactics do not tend to work.
Traditionally Life insurance was a popular benefit option in this age group. As the perception was that it gave a promise of financial security for loved ones. Today, these young adults are in no rush to buy life cover, according to a survey compiled by Gen Re.
Contributing factors such as delay in traditional adult milestones. Like buying a house or getting married, which is the trigger for a decision to seek life insurance. Along with shifts in income and lifestyles and even student loan debt.
Yet, the survey by Gen Re found that the majority of Millennials with an individual policy are actually in their late 30’s. They are married or co-habiting and living in rented or mortgaged property. 80% of this group have children. In contrast, those with no life cover are under the age of 30, with one-in-five living with a partner and a mere 8% having children.
Clear differences in respondents’ personal circumstances seem to reaffirm that for some people key milestones continue to underpin the decision to get Life insurance.
So why is it so hard to make the sale?
Millennials are accustomed to transacting with just a few clicks on their smartphones. Traditional life policies need a meeting with a sales person and a medical examination. Processes which a millennial will see as an inconvenience. Millennials prefer to communicate in this order.
- Text (IM apps like WhatsApp and Messenger)
- Email (a catchy subject line is important)
- Social media
- Phone call
- In-person meeting
Expenses like cable television, internet access and mobile phones didn’t exist a few decades ago. But today it is high on the list of financial priorities for the average millennial. The importance of life insurance may fall below these modern day essentials.
The internet also plays a role. Millennials are visual learners. Before making any purchases, they will spend time researching the product online. They will use social media and look at independent ratings of what people think about the product. The information is at their fingertips. They are also looking for the latest and greatest tools around. Innovative products which have immediate benefits that appeal to them. It’s not easy to fit life insurance into those categories
Get Online & Reach Out
The internet plays a massive role when Millennials consider purchasing certain products and services. They are visual learners. Before making any purchase, they will spend time researching the product online. They will use social media and look at independent ratings of what people think about the product. The information is at their fingertips. They are also looking for the latest and greatest tools around. Innovative products which have immediate benefits that appeal to them.
How Millennials get news:
It’s Not About You
Millennials can do their own research and they can smell advertising a mile away. If they haven’t heard of your brand or don’t believe in it – that’s not going to make or break the deal.
Focus on them. Listen and ask the right questions. Don’t make it about you or your business or your other clients. Focus on their circumstances and show them how the right product can and will benefit them. There is no reason to oversell. Studies show that Millennials are likely to research reviews of product before they make their decision.
Smooth-talking is vital to the art of sales. But know when to stop talking, especially when it comes to Millennials. The Millennial generation has a reputation of being self-absorbed. You should be talking for only 20% of the time and listening the other 80%. Yet you should capitalize on this reputation by asking key questions and listening to their worries. Then present them with a simple and beneficial solution.
Without mentioning any names, use your experiences with other clients to relate to their worries and fears. Millenials are an emotional bunch, so it will help for you to have real life stories to share.
Give Them Free Tools
According to research by the IDG Research Group, 59% of Millennials use social media to find information. They are fact driven and want reliable accurate content which is straight-forward and unbiased. Facebook, Pinterest and Twitter are favorites with Millennials with kids.
Allow them to make an informed decision by giving them something tangible that somehow links back to the benefit of the insurance cover. Relevant content such as an e-book could get the conversation going with your younger client. Share this content across your social networks including Hashtags like #parenting #lifeinsurance.
Content such as videos, blog posts, webinars, slideshare presentations and infographics is a great tool to use. It can entertain and educate the millennial on associated topics directly or indirectly linked to your product. It’s a great way to garner trust and confidence with your consumers and it’s also a way to identify what is relevant to them.
For example, many of your potential Millennial clients would be buying or living in their first owned home. So a blog post titled “Do’s and Don’ts for first time homeowners” is something that could appeal to them. Then convert this into a PDF presentation. Create an account on SlideShare making sure to include your website links in your profile. Upload your presentations and be sure to include the right keywords. Make sure to share across social media channels using Hashtags like #firsttimehomeowners #lifeinsurance.
‘What amount of coverage do I really need?’ is probably one of the questions you will hear from a Millennial. Millennials want to be able to compare and select different quotes. To make sure that they are purchasing the best product and cover for their life stage. By comparing term period and plans it’s gives them confidence that they have purchased the best option. Offer them an online calculator on your website, where they can do their own calculations during their research stage.
A ‘plain language’ policy also goes a long way with Millennials. It gives them the ability to read through the full terms and policy offerings in consumer friendly wording. Unlike the legal jargon of most policies.
As mentioned above, an infographic such as this one below, has many benefits. It’s also a good way of illustrating facts in a simple and visually appealing manner. There are many tools online that you can create infographics like, picktochart.
Don’t waste their time
Keep your pitch short. Millennials live in a fast-paced world. They don’t want a long-winded blatant sales pitch or PowerPoint presentation. What they want, is for you to get to the point!
An emotive video, not more than 2 minutes. Having brief and descriptive sentences will captivate and engage your potential client. This type of content is effective with Millennials.
A good example is this one prepared by an Australian Insurer, CommInsure.
Another great video to show the benefits of why they should be consulting with a broker, is this example:
A few extra tips for the best video.
- Keep your video under 2 minutes long
- Simplify the content
- Show the viewer how to do something (solve a problem)
- Most importantly keep the message aspirational.
There are many tools online to help you produce a video, like this one from PowToon.
Give them the reasons your product is worth their time and let them go and do some more research and come back to you in their own time.
- Millennials are tech-dependent. Engage with them by being active on the right social media channels. Always keep your message consistent.
- Millennials are outcome driven and need to see results. Keep your pitch to under a couple of minutes, treat them uniquely and tailor it to what they want. Ask and listen carefully.
- Easy accessible, understandable and beneficial solutions are what Millennials are looking for.