Simplified Generational Marketing for Small Agencies

Targeting the Needs of the Past, Present and Future

Virtually every insurance marketing expert proclaims that to sell policies to each new generation, you must approach them differently than their predecessors. And of course, they’re right. Unfortunately, too few agencies heed this sage advice. A key reason for this is that it is burdensome for small insurance offices to apply sophisticated generational marketing techniques to their clients and prospects. Plus with today’s longer life spans, there are lots of generations to keep track of. That’s why this column suggests a simplified stage-of-life approach to personal lines marketing.

Three Personal Lines Groups

Rather than deal with such generational distinctions as seniors, baby boomers, gen X’ers, gen Y’ers, and so on, replace them all with these three: future, past and present. Future represents the youngest third of your client and prospect databases, past is the oldest third, and present is everyone else. This is essentially what the target retirement funds do. These financial marketers sell mutual funds that are geared for specific retirement years, such as 2020 and 2040. They offer a simple solution to a very complicated problem: adequate retirement funds. You can approach age-based marketing in a similar fashion.

The Future

There is a common belief that members of the future group (primarily people under the age of 30) should be marketed to by online means only. This is a mistake. Instead of relying entirely on the Web, social media, and texting promotions, agencies should engage traditional marketing channels as well. Younger insurance buyers still watch TV, listen to the radio, receive postal mail, see inserts, and look at certain print publications, just not as much as previous generations. So, make your Web site the primary portal for meeting their insurance needs (information, quoting, policy inquiry, billing, claims, etc.). Entice them to get there mainly, but not exclusively, through Web 2.0 media. The target retirement funds deal with this, in terms of investments, by recognizing that the futures have a greater risk tolerance and the time to take a long-term view. As such, their needs are distinguished by offering mutual funds that are heavy on stocks and light on bonds.

The Past

The oldest third of your clients and prospects possess the most insurable assets. And since they have the most to lose and least time to make up for financial mistakes, they are more of a “bonds versus stocks” group. Furthermore, they remain comfortable being enticed by traditional marketing messages, even as they spend more and more time on the Internet. (Many do not use texting at all.) Therefore, marketing to them requires more offline than online promotions. Creative direct mail, ads and inserts in selected print publications, plus entertaining radio spots are effective in getting them to call, stop by, or click. In growing numbers, these aging individuals enjoy online shopping, so also create Internet-based insurance marketing campaigns tailored to this audience. Invite them into your online communities and promote special services relevant to their needs.

The Present

This final group consists of everyone else. It’s basically made up of middle-aged insurance buyers, most of who are employed with families to support. Market to them with a fluid blend of online and offline insurance promotions tailored to their needs and responsibilities. Continuously experiment to identify the best approaches to generate sales activity.

Dot Com Redux

It’s easy to presume that insurance marketing should be entirely Internet-based and that anyone who doesn’t see this just doesn’t “get it.” This sounds eerily familiar. The same thought process was used prior to the dot com meltdown of a decade ago. The reality is that there is room for both online and offline marketing. Just the percentages and messages vary, depending on the group you are targeting. Look at GEICO. They routinely employ direct mail, print ads, inserts, TV/radio, and more, in addition to their Internet endeavors. You too should explore all available promotional outlets, both contemporary and traditional. The online-only future of insurance sales isn’t here yet; so you can continue to send out sales letters and advertise, effectively and guilt-free, for years to come.

Topics Agencies