Insurance companies and the millennials

A young woman in the office. Over the past decade the rise of millennials has been profound. PHOTO | AGENCIES

What you need to know:

  • Millennials are ambitious, educated, optimistic, digital- savvy, diverse, opinionated, multitaskers, trusting, confident, self-assured, and enjoy being rewarded and recognised.
  • The millennials optimise time so they can get more done quicker.
  • Technology and efficient processes are the most important pillars.
  • When millennials look for products or services they either use search engines or reach out to their friends on social media for their opinions.

Over the past decade the rise of millennials has been profound. This has been the biggest group since the baby boomers, according to research done by Pew Research in 2015. Who are they really? Millennials were born between 1980 and 2000 (ages 16 to 36). They are ambitious, educated, optimistic, digital- savvy, diverse, opinionated, multitaskers, trusting, confident, self-assured, and enjoy being rewarded and recognised.

Time is a rare commodity for millennials. It all boils down to optimising time so they can get more done quicker. Work-life balance is high priority.

It is important to grab the attention of this target market. Marketing messages must be short, to the point and relevant. Insurance firms must embrace digital platforms and marketing tactics that appeal to them. Digital “targeted” marketing is something firms should invest in. This means that advertising will occur at the right place at the right time, creating a need for insurance products.

Personalisation: One size does not fit all millennials. They want you to “Know me”, “Understand me”, and “Value Me”. This is the treatment they are accustomed to.

ESTABLISH RELATIONSHIPS

Insurance firms can use existing data to establish relationships early. We should be seen as adding value to their lives. The feedback that millennials provide is the biggest gift any company could ask for.

For insurance, this means that there must be bigger investments in technology for flexibility. Technology and efficient processes are the most important pillars.

However, it is finding people that have a customer obsessed mentality, which will inherently build a culture that supports the needs of the millennial consumer. These are the people that will drive the technology and processes so it’s imperative that companies get the people aspect right.

Research: When millennials look for products or services they either use search engines or reach out to their friends on social media for their opinions. Customer reviews also play a part in buying decisions. What insurers need to understand and accept is that the communication with this target market is no longer one-directional and only during operating hours. It’s bi-directional and happens 24/7/365.

LISTENING TOOLS

It is becoming exceedingly important for us to start investing in social listening tools that give us the ability to understand the negative remarks that customers are making about the brand and use those to immediately turn that negative perception into a positive one and in the process create memorable experiences.

These listening tools are also very powerful for marketing to the millennials: “Right place, right time”! The products that the firms offer must be easy to understand. If we make their lives easier they will be our biggest advocates. The positive sentiments of customers should also be duly monitored.

This information will provide companies with insights into what works so that they can get even more leverage.

Kenya’s population is 47.9 million and the median age is 19. This is where the future buying power is. Starting relationships with these customers early will be pivotal to the longevity of insurance companies. Education is key for millennials.

Therefore, we need to start looking at opportunities to capture this market at the grassroots. Market products to them that are appealing (savings plans, educational investment and, motor vehicle policies, etc.). Millennials appreciate being valued.

Therefore, reward and recognition programmes should be implemented to drive a certain behaviour (for example gadgets for motor vehicle driving patterns).

Multitasking is just a way of life. Insurance firms need to fit into millennials’ lifestyles.

Ms Smith is the group head of customer focus and innovation at Jubilee Insurance Company Limited. [email protected]