Selling Insurance to Younger Customers
Millennials-those born between the early 80s and the early 2000s—are among the most challenging markets to sell insurance to. But you can generate a lot of business by targeting millennials, if you know how to reach them. Here are a few tips.
Pricing is important. Younger buyers are extremely price-sensitive. True, you probably don’t have much control over how much one customer’s plan will cost per month; that will depend on the company whose products you sell, and that customer’s situation.
But you probably do know what is and isn’t likely to land someone a discount on a policy. If you can sell yourself as someone who can help Millennials navigate a complicated market to find insurance they can afford, you’ll do well.
Consider the products they want. If you’re selling homeowners insurance to Millennials, you make some money—but consider the statistics. According to the Urban Institute https://www.urban.org/research/publication/millennial-homeownership , only about 37% of Millennials own homes—down 8 points from Baby Boomers at the same age.
They’re also less likely to be married https://www.pewsocialtrends.org/essay/millennial-life-how-young-adulthood-today-compares-with-prior-generations/psdt_02-14-19_generations-00-06/, have kids https://www.forbes.com/sites/josephcoughlin/2018/06/11/millennials-arent-having-kids-heres-why-thats-a-problem-for-baby-boomer-real-estate-retirement/#72bd396d2058, and own cars https://www.mcall.com/business/mc-biz-cars-millennials-20181112-story.html. That means you may not make a lot of money selling auto or homeowners insurance to Millennials—but you could do very well selling renters’ insurance https://www.bankrate.com/mortgages/help-for-millennials-grappling-with-rent-versus-buy-a-home/.
Millennials tend to value experiences over material goods, too—so they may be more likely to buy travel health insurance, for example, than insurance for an expensive item.
Be online—and be convenient. Millennials are not going to call you. And they’re definitely not going to stop by your office. They might email you or tweet at you—but more likely, they’ll go to your website and fill out a form for an instant quote. If you’re not findable or don’t have that instant quote form on your site, you may lose out on a lot of these customers.
Be where they are. What social media platforms do millennials in your demographic hang out in? Wherever that is—whether it’s Instagram, YouTube, or Facebook—you should be there, too. Maintain a presence that’s fun, approachable, accessible, and informative, and you should be able to attract some attention and followers.