There are two assumptions commonly made about millennials: they are tech-savvy, and, perhaps because of that, they are not loyal to brands.
Research always confirms the first assumption, but the second, not so much. Millennials, it turns out, are more brand-loyal than other generations.
In Inc., Geoff Smith writes: “Millennials are also the most loyal generation to their favorite brands, with just over half (50.5 percent) saying they are extremely loyal or quite loyal to their favorite brands.”
Another study puts the number at 60%. And why? Smith again: “One hypothesis for why Millennials are so loyal when faced with nearly unlimited choice is social proof. Social proof is the psychological concept that humans naturally look toward those around them to help make decisions. This used to be a uniquely real-world, analog phenomenon, but like most things in recent years, it has found many online manifestations.”
We are fighting the instinct to step back and stare at that theory for hours. Let’s just say we wish we thought of it, and had a few weeks to think over its implications. Maybe we can set something up for 2018.
But, for now, we would like to extract the clear message: your technology can and should build your brand. This is true even if you’re using outside technology. Trov, a startup that sells insurance on demand, offers an interesting example. Celent’s Jamie Macgregor describes their model in a recent blog, “I also found it interesting to hear that they have started to evolve their business model into three focus areas, being: (1) Trov as a direct brand; (2) white-labeled Trov; and (3) Insurance-as-a-service, where they will rent their platform to partners — with an aspiration to evolve it into auto, home, and other lines.”
Some insurers would balk at even offering insurance on demand, but those that are willing to can now partner and do it quickly, and that’s a new way of thinking enabled by insurtech.
The ever-wired millennials use more technology, especially mobile technology, and are likely to have insurance needs that will increase later (that is, fewer of them have life insurance, or homeowners insurance). Insurers have an opportunity to build brands with a generation that (for now) is the most loyal of all.