It’s safe to say that adulting is hard. One of the many responsibilities that comes with adulting is buying auto insurance. Millennials are a unique generation because they are more tech and social media savvy than older generations, but they are also mature enough to make major life decisions. It’s your job to understand what makes this demographic tick to best attract them to your business.
Facebook recently conducted a study that surveyed 1,007 US insurance consumers to better understand their shopping mindsets. According to the study’s findings, 80 percent of millennials initially consider one to three brands when researching. Nearly half (43 percent) discover brands online, and 25 percent discover them on mobile devices. Sixty-one percent spend less than four hours researching those brands. Friends and family are the biggest influences in millennials’ insurance decisions, with 92 percent saying they look to recommendations from family and friends when deciding. When they’ve finally made their decisions, 42 percent of millennials purchase their insurances online.
Image Courtesy of Facebook
How to Attract Millennials Shopping for Auto Insurance?
Facebook’s study discovered various factors millennials consider when shopping for auto insurance. Based on those findings, here are five recommendations for attracting them.
First, include reviews in your ads. Facebook found that 80 percent of all insurance buyers consider recommendations from family and friends when evaluating brands. Millennials in particular feel more confident in their final decisions after considering input from others, which means they find reviews by other customers more trustworthy than anything a brand’s agent might say. The power is in the people. Promote reviews by happy customers in your ads to help your audience trust your brand more.
Second, establish a big online and social media presence. Facebook says millennials are highly engaged with social media when looking for auto insurance. Thirty-eight percent of millennials consider Facebook and other social platforms’ useful sources for their insurance shopping, and they are 2.7 times more likely to become interested in a brand through social media ads than baby boomers or Generation X. Make your brand active on social media platforms to reach your millennial audience and help them learn more about what you offer.
Third, use retargeting. Millennials will often visit a brand multiple times before making a final decision. Make sure you’re retargeting shoppers who have already clicked on your ad or visited your website but haven’t officially made the purchase yet. This will help keep your brand at the forefront of their minds as they continue evaluating their options.
Fourth, provide an online quote service. With 91 percent of shoppers indicating that price is a crucial factor in their evaluation of insurance brands, you should make it easy to get an online quote for your services. Surprisingly, Facebook’s study found that only 41 percent of insurance agents provide online quote services, so offering it for your brand will give you a leg up on the competition.
The last advice is this: offer shorter, flexible contracts. Millennials like experiences that are personalized especially for them. Give them various options for contracts to help them make the right decision for their unique situations.
Buying auto insurance is a big decision, especially for young adults who are not as familiar with the process. Use the findings from Facebook’s study to reach your millennial audience in the most effective way possible. You know them—now help them know you.
