Marketing to Younger Generations Projection: The Generations U.S. - - PowerPoint PPT Presentation

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Marketing to Younger Generations Projection: The Generations U.S. - - PowerPoint PPT Presentation

Jun 16, 2023 438 likes •767 views

Marketing to Younger Generations Projection: The Generations U.S. Population by Generation - 2020 Gen Z 79 Ages 2 to 20 Millennials 87 Ages 21 to 39 Gen X 66 Ages 40 to 55 Boomers 72 Ages 56 to 74 Silents 23 Ages 75 and over In

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Marketing to Younger Generations

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Projection: The Generations

23 72 66 87 79 Silents Boomers Gen X Millennials Gen Z

In Millions

U.S. Population by Generation - 2020

Source: U8 Census, 2014 National Population Projections

Ages 2 to 20 Ages 21 to 39 Ages 40 to 55 Ages 56 to 74 Ages 75 and over

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  • Growth of the internet, search engines &

information.

  • Explosion in social networking and news sources
  • Ubiquity of mobile devices.

Technology

  • September 11, 2001 terrorist attacks.
  • The Afghan war, which began in 2001, is the

longest war in U.S. history!

Terrorism & War

  • Economic recession in 2001.
  • Financial crisis of 2007– 2009.
  • Worst economic period since the great depression
  • f 1929–1939.

Economic Instability

Defining Events for Millennials

2018 LIMRA Life Conference, Chicago, IL

Generations are defined by common experiences.

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62% 55% 50% 50% 44% 44% 72% 65% 56% 47% 42% 41% 34% 32% 1960 1976 1984 1992 1998 2004 2010 2016 Owns Any Individual Life Owns Individual Life Bought In-Person

Individual Life Distribution Trends

Source: Life Insurance in Focus, LIMRA, 2016

Before ’84, buying in- person was presumed In ’84, 6-point gap identified Gap is now 12-points

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Buying via agents was a shared experience among most households. Now, those working with an agent (or

  • wning individual life)

are the minority. Very different context for modern shoppers!

Group Coverage More Common than Individual

Source: 2016 Life Insurance Ownership in Focus - Households

46% 54% 53% 52% 52% 49% 46% 72%+ 65%+ 62% 55% 50% 50% 44% 44% 83% 83% 81% 78% 76% 78% 70% 70% 1960 1976 1984 1992 1998 2004 2010 2016

*Includes Individual, Group, SGLI & VGLI + Individual Life Sold Face-to-Face through an Agent

Owns Group Life Owns Individual Life Owns Any Life*

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33% 29% 43% 50% 44% 44% 2004 2010 2016 Households Under Age 35 All Households

Big change in

  • wnership trend

among Millennials

  • vs. Gen X.

Most prefer to buy in-person.

Individual Life Ownership Trends by Age

Source: Life Insurance Ownership in Focus, LIMRA, 2016

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Purchase Coverage (7%) Evaluate Quotes (11%) Seriously Shop (15%) Recognize Need (25%)

  • 1-in-4 households recognize a need for

life insurance in a 24-month period (31 million households).

  • Among those, just 58% move on to “shop”

for coverage - 19 million households.

  • The majority (72%) of “shoppers” move on

to apply for quotes - 14 million households.

  • Of those that apply for quotes, 66% go on

to buy life insurance - 9 million households.

The Individual Life Purchase Funnel

The Purchase Funnel, LIMRA, 2017

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Stage 2 (Shop) Stage 3 (Quote) Stage 4 (Purchase)

1.53 1.19 1.1

The Purchase Funnel, LIMRA, 2017

Number Of Methods Used By Stage

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27% 34% 32% 13% 17% 33% 22% 46% 31% 26% 21% 22% Stage 4 - Purchase Stage 3 - Quote Stage 2 - Shop Phone Online Mail In-person

The Purchase Funnel, LIMRA, 2017

Included: in-person, mail, online, phone. Excluded: banks, peer-to-peer, workplace, other.

Distribution Share By Purchase Stage

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28% 16% 12% 9% 25% 15% 11% 7% Recognize Need Shop for Coverage Apply for Quotes Purchase Coverage Households Under 35 (millennials) All U.S. Households

Younger consumers are slightly more prevalent in the purchase funnel.

Purchase Funnel - by Age

Source: The Purchase Funnel, LIMRA, 2017

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Stage 1 - Strongest Impression on Need for Coverage

Source: The Purchase Funnel, LIMRA, 2017

0% 5% 10% 15% 20% 25% Information from a meeting/seminar Advertisements Information received by phone Don't remember Information in an email Information received at work A financial professional Information in the mail Conversations with friend/relative Households Under 35 (millennials) All U.S. Households

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Information Sources Percent Used ‘Very Helpful’ I reviewed information I received through the mail 33% 46% I used at least one online source for information 31% 58% I met in-person with at least one Financial Professional 26% 82% I spoke by phone with at least one company directly 22% 61% I spoke with friends and family members 20% 56% I watched/listened to information on TV/radio 10% 44% I read information in newspapers and magazines 9% 49% I attended a seminar or meeting on life insurance 7% 60%

The Purchase Funnel, LIMRA, 2017

Stage 2 – Information Sources Used

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Source: The Purchase Funnel, LIMRA, 2017

0% 10% 20% 30% 40% Attended a seminar Newspapers/magazines Watched/listened to TV/radio Spoke with at least one life ins. co. directly information received through the mail Met in-person with a financial professional Spoke with friends/family Used at least one online source Households Under 35 (millennials) All U.S. Households

Stage 2 – Information Sources Used

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Stage 3 - Method Used for Quotes by Age

Source: The Purchase Funnel, LIMRA, 2017

0% 10% 20% 30% 40% Direct by mail Online aggregator Over the phone Group/Association website Company website Financial Professional Households Under 35 (millennials) All U.S. Households

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The Purchase Funnel, LIMRA, 2017

Included: in-person, mail, online, phone. Excluded: banks, peer-to-peer, workplace, other.

27% 22% 14% 26% 21% 19% 14% 27% In-person Mail Online Phone Under 35 All Households

Stage 4 – Purchase Method By Age

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52% 52% 45% 40% 54% 52% 37% 20% 41% 33% 22% 13% Millennials Gen X Boomers Silent Visited the website of a life insurance company Sought information about life insurance online Purchased/attempted to purchase life insurance online

Online Usage for Life Insurance by Generation

Source: 2018 Insurance Barometer

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32% 16% 6% 46% 27% 15% 5% 53% Used after researching elsewhere and getting a good idea of what I wanted Used before researching insurance elsewhere Used without researching insurance elsewhere Did not use 2017 2018

Use of Comparison Quote Websites

Source: 2018 Insurance Barometer

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52% are more likely to buy via SUW, than via traditional UW.

Likelihood to Buy - Simplified Underwriting (SUW)

Source: 2018 Insurance Barometer

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SUW is most appealing to those who own group coverage.

Likelihood to Buy via SUW by Life Ins. Ownership

Source: 2018 Insurance Barometer

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Most appealing benefit of SUW = fast and easy process.

Consumer Appeal of Simplified Underwriting

Source: 2018 Insurance Barometer

45% 63% 65% 65% 65% 72% No face-to-face No Dr. visit Unbiased & objective Transparent pricing No medical exam Fast & easy

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56% 94% 97% 59% 95% 97% Start a business Graduate from college Financial independence Gen Z (16 & 17) Millennials (18 - 22)

Top Financial Goals

Source: Discovering Gen Z, LIMRA, 2017

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  • “I want to major in Industrial

Design to be able to create my own inventions.”

  • “I want to make a business

and work on my own because I don’t like following rules….When I feel I am ready, I will create a business

  • f my own.”

Voice of Gen Z

Gen Z Financial Goals

Source: Discovering Gen Z, LIMRA, 2017

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37% 41% 52% 51% 49% 45% 30% 34% 40% 43% 43% 50% Money management skills Financial knowledge Future Achieving financial goals Getting a full-time job Student loans Gen Z (16-17 years) Millennials (18-22 years)

Top Financial Concerns

Source: Discovering Gen Z, LIMRA, 2017

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Voice of Millennials

  • Start learning about finances before college. It will

help you...especially with student loans.

  • Learn how to budget, keep on track, pay off loans

early, and you can be financially independent sooner.”

Voice of Gen Z

  • The way you budget your money determines the

lifestyle you’ll have.

Young Consumer Financial Concerns

: Discovering Gen Z, LIMRA, 2017

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11% 22% 23% 55% 7% 16% 18% 63% Online personalities/YouTube/blogs Opinions of friends/peers Online ratings/reviews Opinions of parents/family Gen Z (16-17 years) Millennials (18-22 years)

Financial Decision Influencers

Source: Discovering Gen Z, LIMRA, 2017

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29% 50% 56% 57% 73% 75% 79% 82% 96% Life insurance Benefits at work Health insurance Loans Auto insurance Credit card Budgeting College funding Saving money

Topics Gen Z Discuss With Parent

Source: Discovering Gen Z, LIMRA, 2017

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Voice of Millennials

  • It is vital for parents to talk about finances… teach

kids how to save and spend money, even their allowance and birthday money.

Voice of Gen Z

  • I found a personal finance course helpful in choosing

a career, finding its base salary and trying to plan a successful lifestyle. It was a great way to see how well you can budget and plan for the future.

Topics Gen Z Discuss With Parent

Source: Discovering Gen Z, LIMRA, 2017

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Social Media Used for Reviews

: Discovering Gen Z, LIMRA, 2017

10% 14% 27% 26% 38% 36% 47% 56% 79% 6% 8% 24% 31% 34% 43% 48% 55% 73% LinkedIn Tumblr Pinterest Google+ Twitter Snapchat Instagram Facebook YouTube Gen Z (16-17 years) Millennials (18-22 years)

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6% 10% 10% 13% 19% 22% 21% 2% 5% 12% 13% 17% 21% 30% Online discussion forums Learning from a textbook Group discussions with financial professional* Online courses Visiting general financial or company websites YouTube video clips Classroom with teacher* Gen Z (16-17 years) Millennials (18-22 years)

Financial Learning Preferences

Source: Discovering Gen Z, LIMRA, 2017 * Face-to-face or virtual settings

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Voice of Gen Z

  • Everyone uses phones and apps, so the focus should

be on using technology.

  • Give examples of good apps to use for managing

expenses, bank apps for mobile deposits, electronic bill payments, transferring money.

Financial Learning Preferences

2018 LIMRA Life Conference, Chicago, IL Source: Discovering Gen Z, LIMRA, 2017

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