how to talk benefits to millennials · 2019-03-01 · millennials do not necessarily care about:...

How to Talk Benefits to Millennials

Michael DahlingerRegional Sales Representative,

Michigan

Trustmark

Cyrus MoserRegional Sales Representative,

Allegheny Mountain Region

Trustmark

Michael Dahlinger

Regional Sales Representative,

Michigan

Cyrus Moser

Regional Sales Representative,

Allegheny Mountain Region

Meet our millennial presenters

Agenda

What’s so unique about millennials?

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

A unique demographic:

Characteristics

What do you think of when you

think of millennials?

Techy

Entitled

Lazy

Lack loyalty

Financially illiterate

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

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

More global

Increasingly multiracial

Seeking flexibility

Blends life and work balance

Financially-conscious

Loves avocado toast

More collaborative

Fluent in digital communication

Craves instant feedback

A unique demographic:

Challenges

Challenges with millennial

employees

The importance of age 26

The greatest problem with

selling to this generation

How do you marry independence

with education and technology?

A unique demographic: Characteristics

Millennials are the largest percentage

in the workforce today, making up

more than a third of U.S. employees.*

They are now coming of age, building

families, having children, getting

married, etc.

And, starting to purchase voluntary

products.

*Pew Research Center. Millennials are the largest generation in the U.S. labor force. April 11, 2018.

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 (e.g. 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.”

Messaging & Purchasing: Pre-enrollment

On average, benefits pre-

promotion uses these channels:

Digital content distributed by

employer

Printed material distributed by

employer

Face-to-face with HR or rep

*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 chat

Vespa, 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.”

Observations

Millennials 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

… 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.