Market research provides insights on the challenging topic of millennials.
Millennials, the generation accused of killing cereal and casual food chains, make up roughly 25 percent of the consumer population (and a surprising $200 billion in annual buying power). Yet, brands have a notoriously hard time connecting with millennials. Growing up in a time of constant change, they can be a challenging audience to figure out.
In an attempt to learn more, FARM and our sibling company, Pathfinder conducted a nationwide survey of millennials. We sought to find out how they perceived, researched, and bought financial services and insurance products. This survey was conducted once in 2015, and again in 2017, in an effort to illuminate how much millennials have shifted their perspective and behavior over the past few years. Here’s what we learned:
1. Millennials are more likely to have any kind of insurance now than they were in the past. In fact, only eight percent of millennials reported not having health insurance, which is lower than the national average.
2. They are more likely now to be financially prepared for an emergency. In 2015, only about 41 percent said they felt prepared, whereas now more than 56 percent feel financially prepared.
3. As millennials age, they are less likely to rely on their parents as their main source of advice and more likely to rely on the Internet and friends.
4. Everyone wants personalized service and convenience from a company they can trust. This was especially true in 2015, but as the millennials have grown, they are putting more emphasis on price and customer service than in the past as they make insurance purchasing decisions.
5. Home ownership changes everything. As millennials buy homes (which contrary to popular belief, they are doing, just later in life than the previous generations), they are more likely to have money saved for an emergency, buy life insurance, go to a financial advisor or agent, and be loyal to a single carrier or agent.
Millennials are beginning to act more like their parents’ generation as they mature. While there are some distinct differences in how insurance carriers and agencies should communicate with this audience, our newly acquired insights can arm them with the knowledge to engage them with more confidence—and success.
For more information about our survey and findings, contact Jill Fecher at 716-989-3284.