September 6, 2016 2015 (BOSTON) –Advances in technology and the advent of the Internet have made Millennials’ researching behavior and purchasing patterns markedly different from those of previous generations. Millennials have redefined consumer expectations in retail, banking, and other industries, and businesses that want to attract this cohort will have to rethink their strategies. In its latest report, research and strategic advisory firm Novarica illustrates Millennial preferences related to decision-making, purchasing, and coverage. The report, available at http://novarica.com/millennials/, leverages information collected from detailed interviews to help insurers better understand these prospective policyholders.
“Millennials are now the largest cohort in the United States, and their economic influence is growing. Addressing their needs and being able to build relationships with people who have fundamentally different expectations than their older siblings and parents is an important imperative for carriers,” notes Rob McIsaac, Senior Vice President of Research and Consulting and lead author of the report. “Millennials have defined “good” consumer expectations based on experience in other industries, and they are sure to bring these expectations with them in interactions with the insurance industry. Millennial customers are not going to be satisfied with paper-based processes or sales that require office visits and in-person meetings. As we have said previously, legacy processes are for legacy consumers. If carriers are going to appeal to prospective Millennial policyholders, they need to make strategic investments to understand and attract this demographic.”
Key findings of the report include:
- Millennials Google everything. All of our respondents reported using Google as a research tool. They approach search results with caution, but rely heavily on what they read online.
- Millennials don’t want to be sold to. Our survey group expressed a strong desire to guide their own purchasing process, and voiced deep skepticism of salespeople in general.
- Millennials hate traditional channels. They hate getting mail, talking to CSRs, or meeting in person with agents. Failure to let them find and engage with you online means you are “off their list entirely."
Novarica helps more than 80 insurers make better decisions about technology projects and strategy. Its research covers trends, best practices, and vendors, leveraging relationships with more than 300 insurer CIO members of its Research Council. Novarica’s advisory services provide on-demand phone and email consultations on any topic for a fixed annual fee; its consulting services include vendor selection, benchmarking, project assurance, and IT strategy development, providing rapid, actionable insights and guidance, delivered directly by the firm’s senior team. www.novarica.com