The Misconceptions About Millennials
When you are looking at successfully engaging with a brand new generation of consumers (and employees), there's very little doubt that insurers have their work eliminate on their behalf. There can be hardly any doubt that members of the Millennial generation generally consider insurance to become boring and that reputation of insurance brands among this group is low. So how can insurance companies bridge this gap and find a way to meet the challenges that this new generation of customer present?
Perhaps one thing to do would be to challenge existing preconceptions of the group. Many insurers may be oversimplifying and mythologizing the digital and financial behavior and attitudes of Millennials. Indeed, unlike popular opinion, most Millennials are not technology geeks. What this means for insurers is the fact that developing and offering an app won't possess the impact expected among this group. Technology for technology's sake won't interest Millennials; they need to see clear value.
More broadly speaking, insurers still have much to do with regards to connecting Millennials and insurance companies. It's clear that younger customers view insurance brands as solid, safe and staid, guarantors when something goes completely wrong. However, they also see insurers as faceless organizations that have little knowledge of their needs. The successful insurance brands of the future will be those that can offer the established, safe reputation that Millennials have come to expect from insurers, alongside an awareness of their lifestyles, which aligns using the way they communicate with one another.
It's also interesting to consider, in this context, how Millennials make strategic decisions about financial management and, specifically, around how they buy insurance. What many insurers might not realize is the fact that many are using word-of-mouth recommendations and advice from friends and family, which can bring the reputation and make of the insurer to the fore. Because of this, establishing brand reputation and taking advantage of word-of-mouth campaigns will be key.
Because the client journey from the Millennial is less certain, it will likewise be increasingly important for insurers to invest in an audio omni-channel strategy. Because they are dealing with customers – or at the very least, prospective customers – who're savvy across an assorted range of channels, and who'll dip interior and exterior them at regular intervals before they create a purchasing decision, it may be nearly impossible for insurers to understand exactly which channel they will use or prefer.
What is especially striking, however, is how small a part social media plays for Millennials when it comes to the way they experience customer service. Contrary to public opinion, most appear to have fenced off social media interaction into their personal world and are not convinced that this is when they'll engage with insurers on customer support issues. Perhaps we ought to give greater credit to Millennials' understanding of how social networking attacks can backfire and public castigation is a waste of one's.
In nevertheless, when it comes to complaints, insurers should consider that Millennials are probably no different than every other generation. They request efficient and effective reaction to direct complaints. While less concern should be provided to Millennials causing reputational damage via social networking “flaming,” they're prone to take decisive action earlier, with a third willing to switch immediately.
It's remember this that Millennials aren't looking for digital-only channels, and that they place great value on personalization and self-service. Millennials want just-in-time advice and support, delivered right at the moment they require it. They don't want to get “just in case” advice and support that is delivered at some inappropriate moment (and through an inappropriate channel) and that may not be the best content (which they may have forgotten when they need to put it on anyway).
Perhaps the most significant consideration is the extent that Millennials may be willing to share private data in exchange for a discount or a reduced premium. This appears to justify experiments in telematics and may set the standard for insurers to innovate around newer technologies like wearables. All of this should strongly influence technology choices for how insurers make certain their companies are responsive to customers. Systems that embed consistent best practice each time, as part of every interaction, to own absolute optimum outcome for both the insurer and the customer being an individual are critical.
In summary, whilst not all Millennials are the same, all of them share similar traits – namely, that they what they need, when they want it (just over time), plus they want everything. With this in mind, there seems very little doubt the most successful insurers when it comes to coping with Millennials will be the ones that are authentic and trustworthy and that are able to offer pricing in the “right” level. Those insurers that can incorporate many of these facets right into a personalized service, which sees and leverages every previous interaction and anticipates their next requirement “like magic,” will be the ones that bridge the generational insurance gap and get ahead.