Managing and Marketing to Millennials: Why It’s Worth Getting to Know Your Younger Customers and Employees

Managing and Marketing to Millennials: Why It’s Worth Getting to Know Your Younger Customers and Employees

By: Michael Miller, State Director Minnesota, Wisconsin, and Iowa

Lazy. Narcissistic. Entitled. The way they’re often portrayed in the media, it’s no wonder that Millennials sometimes get a bad rap. And while there are of course individual exceptions, these broad generalizations about Millennials simply aren’t true. There’s a lot to like about the Millennial generation as customers and employees. Which is good, because they’re quickly dominating the marketplace and the workplace.

A Look at Millennials

A Millennial is one of 71 million individuals born between 1981 and 1996. Most Millennials are the children of Baby Boomers, and the Pew Research Center estimates Millennials will surpass Baby Boomers in population by 2019.

Millennials grew up using technology. The older ones remember a time when the internet didn’t exist; the younger ones don’t. Millennials came of age during the Great Recession and either experienced financial challenges themselves or watched their parents struggle (or both). Most who earned college degrees have student loan debt. All of these factors contribute to the way Millennials buy insurance and how they approach employment.

Selling to Millennials

Experts project Millennials will increase spending by 15 percent annually over the next few years, while Baby Boomers will increase spending by just 5 percent. This is a great opportunity for your agency if you know how to sell to the younger generation.

Make It Easy

Amazon invented one-click ordering for a reason, and it had nothing to do with Baby Boomers. Millennials value an efficient, streamlined buying process. That’s why your agency must have an online quoting system that makes it easy to shop for insurance without providing pages of information. It also pays to provide policy documents electronically. Make sure your carriers offer automatic withdrawal for payments, too.

Expand Communication Options

Millennials prefer to communicate via email, text, and social media and consider talking with people on the phone the nuclear option. So how do you build customer relationships with Millennials? Reach out over email or by text to set up in-person appointments. Have a presence on social media and interact with your customers there regularly.

Show Your Value

You know you face lots of competition online from the Geicos of our industry. Take a look through their websites and you’ll see how easy these companies make it to quote a policy and how little information they provide to buyers so they can make informed purchasing decisions. Millennials may buy online, but they also tend to do their research and read reviews. Make your website a resource for potential customers and ask your current customers to review your agency online. A few positive reviews can turn shopping Millennials into buyers.

Hiring Millennials

Yes, it’s possible to work with Millennials without them driving you crazy (at least most of the time). And with 10,000 Baby Boomers turning 65 every day, you’ll need to work with Millennials to continue to grow your agency.

Take Advantage of Their Tech Skills

Does the idea of incorporating social media, texting, email, and online quoting into your agency fill you with dread? Then hire a Millennial! Millennials are digital natives, and communicating online comes naturally to most of them. Millennial producers and CSRs will be comfortable communicating over email and text. They may also be able to help you add valuable content to your website and interact with customers on social media platforms for you.

Understand What Motivates Them

Having grown up during the Great Recession, many Millennials are simultaneously seeking to make more money and wary of traditional retirement benefits. They saw these products fail their parents and are cautious about experiencing similar financial pain. Working at an insurance agency on commission may be the perfect set-up for self-motivated Millennials. But don’t rely on your 401(k) plan to attract and keep Millennial employees. Instead, show them how selling insurance helps them protect families and businesses (Millennials generally want to feel like their work is making a difference). Then, give them some flexibility in where and when they work. Many agency tasks can be performed remotely.

Remember That Everyone Wants to Hire Them

Millennials may work a little differently from Gen X and the Baby Boomers, but they still work hard, have expert tech skills, and bring energy and new ideas to their workplaces. This makes them highly attractive to employers. If your agency doesn’t hire the Millennial who walks through your door, your competitor might.

Soon, the Millennials will outnumber Baby Boomers. You fail to market to and hire the younger generation at our agency’s peril. With a little knowledge and some flexibility, you’ll find that marketing to and working with Millennials is easier than you think.

Smart Choice® Resources for Attracting Millennials

Smart Choice® offers several resources to help your agency attract Millennial buyers and employees, including:

  • Affordable, professionally designed websites with the Smart Choice® Web Builder
  • Deals on three online rating and agency management systems to streamline agency processes
  • Online CE training through CEAuthority for internet-savvy and time-conscious agents
  • Smart Start™ internal brokerages to help new producers learn the ropes
  • Express Markets™ to help your new agents earn 100 percent commissions with low or no production requirements

Top 5 Sales Tips For Insurance Advisors

Top 5 Sales Tips For Insurance Advisors
By: Ashley Wingate, Vice President, Personal Lines

Selling in the insurance industry is not the same as sales in many other industries. Unlike most commodities being sold and advertised, insurance isn’t a choice in most cases, it’s a necessity. Many customers don’t view insurance as something they want to spend money on, but rather something they HAVE to spend money on. So, you’re really trying to counsel your customer into meeting their own coverage needs, even when they don’t want to spend the money. YOU have to be able to flip the conversation into a positive one so they feel like they’re walking away with something tangible, and not just spending their money on a “have to.” After many years working in this industry, here are my top 5 sales tips for insurance advisors:

  1. Listen to your clients and their needs. It’s tempting to just sit down and begin explaining all the benefits of your insurance policies and plans that your agency offers. My suggestion is let the prospect lead the discussion and they will tell you everything you need to know to close the sale. Instead of pitching your product, ask the person you are speaking with about their life and their family or their concerns for the future. They will tell you everything you need to know and then you become an insurance consultant and not just another salesperson.
  1. Don’t just be an order taker. Too many agents fall into this trap. If you follow the first tip and listen to your client and their needs, then you can develop a consultative approach for your client and offer them Insurance solutions for their needs. Also, don’t be afraid to ask them for their business.
  1. Make sure your clients know what they are buying from you. Stop to go over the carrier you have placed them with and highlight the benefits and features that their policy offers them. Most people don’t understand insurance and this is the time to help them understand what they have just bought from your agency. It’s a time for you to shine and a time for you to educate the customer on why they’re better off with proper coverage.
  1. Ask for referrals. Referrals are an awesome way to grow your business and these customers are much easier to close. Think about a referral program for your agency and reward the customers that send you new customers. Independent agents should rely heavily on referrals, because they have the ability to really shop for their clients and customize coverage. You have the chance to foster a more personal relationship with your clients, and therefore a better chance at gaining referrals.
  2. Network, network, network.  Take advantage of the opportunity to attend trade shows, work with real estate agents, work with the local PTA, and network with other insurance professionals in your field. These are all great places to make connections and learn from industry leaders and stay up to date on what’s going on in the insurance industry.