In the rush to capture the Millennial market, too many marketers are relying on oversimplified stereotypes rather than data. These 80 million Millennials have an estimated buying power of $200 billion. Every major life insurance company is eager to lock them in to their first policy. The problem is most insurance marketers have no idea how to market to Millennials. The problem is compounded by the fact that while the average Millennial is now in their 20s, the average insurance agent is pushing 60. The question is can the generation that raised Millennials now turn around and market to them?
Today’s marketers live in exciting yet challenging times. Competition for the consumer’s disposable income has never been hotter. By some estimates, in addition to the countless products already on the market, every year over a quarter million new products are launched. If you are responsible for one of those new products, wouldn’t it be wonderful to be able to see your product through your prospect’s eyes? Wouldn’t it be great to know exactly what they need to hear in order to buy it?
There has never been a more challenging time to market life insurance. Fewer people are buying life products than ever before. Many are still struggling with the fallout from the Great Recession and can scarcely afford to purchase coverage. Others, who can afford it, don’t feel a pressing need to go out and buy it.
As we enter a new year, membership organizations and associations are facing one of the most challenging environments in their history. Once a primary resource for relevant industry-specific information, associations now compete with a host of tailored information resources proliferating online. What’s more, in some industries there are now a host of competing associations representing the same industry. Private firms have entered the fray by holding their own industry networking events and offering seminars, conferences and other educational programs.
LIMRA has just published a fascinating article about why consumers are not buying life insurance. As previously reported in this blog, study after study has shown the decline in individual life insurance. Industry statistics report that ownership is at a 50 year low and this decline can be seen across incomes and life stages. What is driving the downward spiral?
The current economic environment is impacting associations on multiple fronts. Competing financial priorities are causing many current members to re-evaluate the return on their dues dollars. The impact is also being felt in lower conversion rates among prospective members. According to the 2014 Membership Marketing Report, half of associations have a market penetration of 40% or less of their available market.
Mission, vision statements and core values vary from one association to another. Yet despite their differences, associations are poised to play a vital role in our society. They give voice to an industry or any group that shares a common concern. They provide a host of member benefits including networking, professional development, information, research, statistics and a forum to discuss common problems and solutions. Yet despite all these resources and services, surprisingly few members take advantage of these programs.