Millennials make up roughly 25 percent of the U.S. population, accounting for the largest share of the country’s labor market.¹ Myths abound about the constantly broke millennial still living in his parents’ basement, but in reality, this vibrant cohort is making some major inroads. For one, it is the fastest growing group in the United States earning $250,000 or more per year.²
For health care brokers, grabbing these consumers will be vital to their success and long-term profitability. So what, exactly, is a millennial — and does it even matter?
Well, according to Jeff Fromm, aka “The Millennial Marketing Guy,” president of FutureCast, it actually matters quite a bit whether you can capture the eyes of this group or not.
A millennial is technically defined as someone born between 1977 and 2000. This young cohort already makes around 21 percent of all discretionary consumer purchases – a chunk worth over $1 trillion dollars in direct buying power.² This not only has an impact on those within the group, but has a substantial influence on older generations, as well.
But this isn’t your grandma’s market. Millennials are demanding a new kind of health insurance buying experience — one that is simple, transparent and digitally enabled. And those who are able to provide it will find the most success.
Creating Brand Love with the Next Generation of Health Care Consumers
As long as there have been consumers, there has been brand preference – and the most-loved brands have typically generated the most profits. When striving for that brand preference from millennials, health care brokers will need to ensure that they understand well the minds and hearts of this generation, and ultimately work to make their services accessible. With that in mind, brokers should focus on achieving most, if not all, of the six primary drivers of profitability. Here, then are those drivers, in order of importance.
1. Social Circle
Millennials are talking with one another — and if a peer has good things to say about a particular offering, then brand love is likely to follow. Today, the word “expert” has a new definition, broadened to include friends in different social circles. This group prefers conversation and participation. When it comes to marketing, think like Pinterest.
Millennial consumers also seek offerings with which they feel an emotional connection. In these cases, the brand becomes an extension of themselves. Brands like Red Bull and Starbucks have excelled in this driver – those brand preferences define consumers. But health care brokers today can strike a similar chord by ensuring that benefits meet specific and individual needs.
Providers that can create value while offering a “cool” experience are also placed high on millennials’ lists. In fact, says Jeff Fromm, this group is two-and-a-half times more likely than other generations to be early tech adopters. But in order to stay at the top of the list, new technology must also serve a purpose or have an innovative twist. Some of the companies that are top-of-mind to millennials when it comes to this driver: AirBnb, Tesla, Top Golf.