How to Talk Benefits to Millennialsand Gen Z · Now: Millennials are the largest in the workforce....
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How to Talk Benefits to Millennials and Gen Z Cyrus Moser Regional Sales Representative, Allegheny Mountain Region Trustmark Kevan Robbins Senior Marketing Manager Trustmark This presentation is for informational purposes and is not intended for training or advice. It includes confidential information and is not meant for redistribution.
Transcript of How to Talk Benefits to Millennialsand Gen Z · Now: Millennials are the largest in the workforce....
How to Talk Benefits to Millennials and Gen Z
Cyrus MoserRegional Sales Representative, Allegheny Mountain RegionTrustmark
Kevan RobbinsSenior Marketing ManagerTrustmark
This presentation is for informational purposes and is not intended for training or advice.It includes confidential information and is not meant for redistribution.
Agenda
What’s so unique about millennials and gen z?
How do they like to hear from insurance companies?
What’s in it for the employer?
How can employers improve the effectiveness of messaging around benefits?
Education
Soap
MannersDemocracy
Motorcycles
The Lottery
The Oil IndustryLunchCable
BuzzFeed’s 18 Things Millennials Killed This Year: 1975–2016. December 2017.
A unique demographic: In the news
Generational Breakdown
Millennials– Born between 1981 to 1995
Generation Z– Born between 1996 and the
early 2010s
A unique demographic: Characteristics
Now: Millennials are the largest in the workforce.
Soon: There will be more Gen Zersthan millennials.
*Pew Research Center. Millennials are the largest generation in the U.S. labor force. April 11, 2018.
A unique demographic: Characteristics
What do you think of when you think of millennials? Techy Entitled Lazy Lack loyalty Financially illiterate
Gen Z – All of the above as well as: Lack of interest Disengaged
A unique demographic: Characteristics
1The Council of Economic Advisors. 15 Economic Facts about Millennials. October 2014. 2The Economist. Myths about Millennials. Aug. 1, 2015. 3Ramsey Solutions. Surveyed 1,000 Americans, 2016.
A unique demographic: Characteristics
Traditional adulthood characteristics of previous generations…
A unique demographic: Characteristics
Traditional adulthood characteristics as seen now…
*U.S. Census Bureau. The Changing Economics and Demographics of Young Adulthood: 1975–2016. April 2016.
A unique demographic: Characteristics
More global Increasingly
multiracial Expects flexibility Interested in
experience over products
Financially-conscious
Loves video platforms
"OK, Boomer"
Prefer in-person discussions
Immersed in digital communication
Craves instant feedback
A unique demographic: Challenges
Challenges with younger employees
The importance of age 26
The greatest problem with selling to this generation
How do you marry independencewith education and technology?
Messaging & Purchasing
What resonates?
What’s the big picture?
Messaging & Purchasing
Millennials DO NOT necessarily care about:
Details of the insurance plan
If they’ll have to pay more later, especially if they can’t afford it now
The insurance gap…if they don’t fully understand it
*Trustmark and Customer Benefit Analytics, “Who Buys Voluntary and Why: 2017 Enrollment Study.”
Messaging & Purchasing
But, millennials DO care about: Peace of mind Responsibility (i.e., the
responsible thing to do) Value of the product Employer’s financial contribution Convenience of buying at work
(i.e., payroll deduction) Easy to understand policy
language Having a personalized experience
*Trustmark and Customer Benefit Analytics, “Who Buys Voluntary and Why: 2017 Enrollment Study.”
Gen Z Messaging& Purchasing
• Risk averse - lends itself well to insurance
• Debt averse – also a plus for insurance
• Prefer visual storytelling
• Want an upbeat and positive message - 60% of Gen Z says they want to change the world
Messaging & Purchasing: Pre-enrollment
Typically, benefits pre-promotion uses these channels: Digital content distributed by employer
Printed material distributed by employer
*Trustmark and Customer Benefit Analytics, “Who Buys Voluntary and Why: 2017 Enrollment Study.”
3TOUCHPOINTS
The magic number is three. Employees remembered and appreciated benefits
more when they saw three or more distinct
communications.1
Messaging & Purchasing: During enrollment
You might think millennials prefer to go online – such as on the company website or social media channels – during enrollment, but those are actually the two least used channels for connecting with a representative.
Top channels used for assistance:
Meeting in person
Calling a representative
Emailing a representative
Using online chatVespa, U.S. Census Bureau. The changing economics and demographics of young adulthood: 1975‐2016. April 2017, Figure 2. LIMRA Life Insurance Service Channels. 2017.
Messaging & Purchasing
How to talk benefits to millennials
Life insurance
Short-term disability
Accident
*Trustmark and Customer Benefit Analytics, “Who Buys Voluntary and Why: 2017 Enrollment Study.”
Messaging & Purchasing: Products
Life Insurance
Short-term disability and Accident
Life Insurance, Short-term disability and Accident
*Trustmark and Customer Benefit Analytics, “Who Buys Voluntary and Why: 2017 Enrollment Study.”
Reasons Enrolled Obstacles to overcome
49% 50.5% “It’s important to have for peace of mind”
49.1% “It’s the responsible thing to do”
“My employer-paid coverage is enough”
“I would rather take my chances”
26.2%“Do not believe I need the coverage”33.8% 35.2%
Additional responses:
Messaging & Purchasing: The big picture Stress value of product and the
ease of payroll deduction
Relate the policy cost to other low-cost items, like a daily cup of coffee
As peace of mind is usually in the top reasons for purchasing benefits, create messages that emphasize taking away worry
Appeal to sense of responsibility for family, children and/or significant other*Trustmark and Customer Benefit Analytics, “Who Buys Voluntary and Why: 2017 Enrollment Study.”
*Trustmark and Customer Benefit Analytics, “Who Buys Voluntary and Why: 2017 Enrollment Study.”
Messaging & Purchasing: Emotional vs. Rational
What’s in it for the employer?
of employees who received three types of benefits communication rate themselves “likely” or “very likely” to recommend their employer based specifically on their benefits program
72%
*Trustmark and Customer Benefit Analytics, “Who Buys Voluntary and Why: 2017 Enrollment Study.”
What’s in it for the employer?
Pre-communication works
Advantages of one-on-one communications
Loyal—and happy—employees
ObservationsMillennials and Gen Zers are:… planning ahead
… looking for personal and professional offerings from their employer that are unique to them
… seeking out companies that understand their need for a holistic approach to wellness
… want to share company values, culture, and even the company mission
… using technology to be smarter consumers
Technology & transparency opportunities
Engagement with digital apps and tools
Telemedicine – doctor and nurse lines
HSA balances
Employer apps
Pharma price checks
If you build it, they will come?
Take action!
1. Know your audience.
2. Personalize your communications and make them easy to understand.
3. Think about the most effective enrollment methods for the demographic.
4. Use at least three communication methods and have someone available for one-on-one advice and guidance.
5. Tailor your benefit offerings for employers and employees.
