Insurance Agents & Affluent Consumers

These days all over social media you see insurance agents branding themselves as service providers to high net worth communities - affluent consumers. Affluent consumers are a desirable target for insurance agents because, with higher income levels, they have a greater readiness to purchase policies of larger premium size and more frequently.

Therefore, it is crucial to effectively target affluent consumers with the right kinds of products and messaging that hits home. This is why it is essential for insurance agents to understand their behaviors, as well as their attitudes and motivations.


Attitudes and lifestyles: who are affluent consumers?


1. Image-conscious.


Research shows that they are 50% more likely to fall into both the ‘cosmopolitan’ and ‘status-seeker’ segments than the average individual. This translates to them valuing well-respected brands that will elevate their position among their peers, with 69% saying they tend to buy the premium version of a product. The key to really gaining their loyalty lies in enhancing their status and emphasizing exclusivity. Only 6% of this cohort fall into the ‘economical’ segment, occupied by those who seek value for money above all else from their purchases. This tells us affluent consumers prioritize brand status over the practical value of the product.


2. Ambitious.


Affluent consumers have high ambitions in both their personal lives and careers. 76% of this group say they are motivated to be the best they can be, which aligns with their desire for higher-value products and status-elevating items. Brands and products that can contribute to their social status will be more appealing to them.


3. Adopters of Smart Tech.


Affluent consumers are key backers of smart technology. They are 89% more likely than average to own a smartwatch and have also taken a strong liking to smart home products. When implementing technology, it is important to understand that this group has a natural keenness for interaction in a way that’s not intrusive and is relevant to them. They are constantly seeking out innovation that is inspirational and has contemporary relevance. Therefore, as consumers’ expectations continue to evolve, any brand will do well to keep transparency and user control front-of-mind in everything they do to build brand trust.



Brand relationships: what drives advocacy?


Every brand desires to nurture advocates from consumers because this leads to a higher return on investment in marketing. So let us understand what motivates this market to speak out.

  1. The quality of the product is the primary factor that would motivate an affluent consumer to advocate a brand.

  2. Rewards (discounts, free gifts, etc.) comes in second, which is surprising given value for money is not prioritized by this group.

  3. Finally, great customer experience is the third most powerful advocacy driver.

From this, it is obvious that advocacy is much more dependent on how the brand and products make the customer feel. Brands that can tap into this by providing high-quality products delivered alongside rewards while making them feel valued as customers will encourage brand loyalty, as well as advocacy.


Conclusion


For insurance agents that are looking to target the high net worth community, it is not as simple as putting down the words "High Net Worth Financial Consultant" in their LinkedIn Profile. They will need to be better equipped and empowered to deliver a better customer experience. In this way, they will then be able to set themselves truly apart from the crowd and win not just the business from these affluent consumers but their advocacy as well.


#insuranceagentadvocates #customerexperience #affluentconsumers

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