The insurance industry – much like all others – must cope with the ever-changing nature of the world. Nowadays, that means evolving business strategies in alignment with technological innovation and the age of consumerism. In short, those buying insurance today are always Internet-connected and they demand the best services, offers and individual interactions.
If insurers do not cater to this generation – i.e. millennials – then it’s possible that all customers will take their dollars elsewhere. In a “Field of Dreams”-esque comment, Lynn Kesterson-Townes, commerce marketing leader for IBM, explained that if organizations leverage key strategies focused on marketing to millennials specifically, more consumers will come, according to Insurance Journal. The source noted that churn rates have risen 13 percent in only a few short years, and with a product that consumers need, it’s clear that insurance marketers must use new strategies.
Here are a few ways that insurance can win over millennials, and therefore all consumers:
Brand experience and authenticity are two key aspects of modern marketing, and there is no reason why the same wouldn’t apply for the insurance sector. On top of that, millennials live on Internet consuming mediums. So, why not content marketing?
“The key to content marketing is providing customers with content that is useful.”
When insurance companies create blog posts, how-to guides and videos to speak to their customers, they are developing a brand persona and nurturing relationships. This makes insurers more human and engages consumers in an experience that can be shared with friends and family. Furthermore, content marketing generates Internet buzz, and with some articles that top Google search results or that go viral, insurance companies can become a relevant name to millennials.
The key to content marketing is providing customers with content that is useful, and in insurance, this means delivering information about choosing insurance plans, tips for lowering premiums and even media related to the specific sector – for example, an auto insurance provider could detail new car announcements or suggestions for safe driving.
No Longer Wanting Ads
An Insurance Journal article detailed a presentation from Kevin Brandt, director of operations for Trusted Choice, which was delivered at the annual meeting of the Insurance Marketing and Communications Association in Nashville, and in it, Brandt explained that consumers no longer want ads “shoved in their face.” Citing that 86 percent of people skip commercials in the age of DVR, Brandt made the point that broadcasting a brand doesn’t work. This is because consumers want to discover content and learn something useful.
For insurance companies, this means that plastering ads around town won’t work. What will work, however, is creating interesting ads – posters, flyers, brochures – that deliver information, an idea or even a joke with a subtle taste of the brand. As long as the insurer’s name is in the corner or featured among the useful content, consumers will remember that ad and affiliated brand. Additionally, insurance companies can create physical materials for their customers and potential clients. Again, practicality takes the cake, and the brand will be shown throughout town.
Direct Mail’s Strong Impact on a New Generation
The source noted another particular statistic cited by Brandt: 66 percent of direct mail is opened. This means physical mail fares better than email when it comes to attracting and retaining customers, since Brant said 90 percent of consumers don’t bother reading corporate marketing emails.
While the typical individual might not regularly associate millennials with direct mail, insurers can use this to their advantage. Because this generation doesn’t often send or receive letters, a company’s content will certainly stand out in empty mailboxes. Better yet, a firm could make a joke that it’s the only one to still use snail mail. This cost-effective form of advertising is definitely a worthwhile alternative to email.
Millennials Demand Personalization
If millennials demand anything, it’s personalization, and in this regard, insurers might have a leg up on businesses in other industries because it is the bread and butter of the insurance sector – catering to customers is what they do. On top of that, data is commonly used by these companies, so why not leverage it for marketing?
With customer relationship management systems, enterprise resource planning solutions and a wealth of organizations from which insurers can purchase third-party data, these firms are swimming in information. As Medical Marketing & Media explained, marketers can use these tools to pinpoint where potential customers are in the buyer process. By taking that information and leveraging it to personalize content, services and offers to millennials, there is a better chance that they follow through on a purchase. This means only sending direct mail materials about pricing to customers ready to buy as well as promoting options that are specific to a certain demographics lifestyles.
Insurance marketing isn’t easy, but with the right strategy and a focus on pulling in millennial consumers, marketers in this sector will be able to attract clients.
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