Millennials will make up the largest population segment the US has ever seen with 83.5 million potential consumers by 2030, according to the MetLife Mature Market Institute.
There’s a real opportunity for insurers to adopt innovative approaches to marketing and delivering products. The following will describe three ways insurers can engage Millennials, enhancing customer loyalty and retention:
1.) Sacrificing privacy for convenience
2.) Leveraging mobile technology
3.) Delivering transparent efficiency
1. Sacrificing privacy for convenience – The digital world has changed attitudes to privacy. Most Millennials are willing to give up some privacy in return for convenience. Companies like Google and Facebook offer ostensibly free services, but in reality consumers are surrendering data that has value. This has given rise to the idea that if you’re not paying for it, then you yourself are the product.
If you want information from Millennials, all you have to do is ask for it. Provided they see a clear benefit to opting in, there’s no reason you can’t collect a great deal of useful data.
2. Leveraging mobile technology – The majority of Millennials – 74%, to be exact – believe that technology makes life easier. Over 90% use the Internet, and 62% connect wirelessly when away from home using handheld devices. It’s no surprise that 94% of Millennials own a cell phone. That’s millions of people equipped with a device that’s easy to use and capable of capturing and sending vital data for insurers. The result is better customer service at a lower cost. It also enables claims to be processed and premiums to be calculated more quickly and accurately. Millennials recognize this value proposition and are enthusiastic about it.
3.) Delivering transparent efficiency – Transparent communication is vital as Millennials don’t want to have to proactively call you to determine the status of a claim, wherabouts of a shipment or status of a bank account. Millennials are used to automatic and real-time communication that leverages their mobile device. Deliver updates by email, or text. Allowing Millennials to opt-out of paper mail also appeals to their values and respect for the environment. The shift away from paper alone can translate to millions in savings.
By offering a transparent, easy experience where Millennials can interact with your business in the way they have grown accustomed to, enterprise systems everywhere will gain a competitive advantage that will increase market share, profitability and reduce costs. Those carriers willing to adopt to these Millennial expectations will be well rewarded for their efforts with all their customers, especially in this increasingly lucrative market segment.
Written by author James Fini; the founder of Enservio, a provider of software and services for P&C carriers to price policies correctly and settle contents claims with more accuracy.