GEN Y
Reaching
Research Results
Click on each to see how our focus group participants responded to questions.
When shopping for significant and expensive purchases, which of the following methods do you use to help make your decisions?
Results
Results: (multiple choice)
1. Ask friends & family 83%
2. Internet 83%
3. Salespeople in stores 45%
Discussion
During the discussion, both use of the Internet and input from friends and family were considered important. Personal advice from friends and family was also extended to include reviews and other forms of product “rating” available via the Internet. Salespeople in stores were in many cases viewed as ”just trying to sell something.” However, it is important a difference was acknowledged between someone “just trying to sell something” and an individual with valuable knowledge and/or experience such as auto mechanic or lawyer. Note: Question #5 specifically addresses this issue.
Observations
Both quantitative responses and qualitative discussion indicate that both the Internet and personal experiences of third parties are extremely important in their purchasing decisions.
Note: This question is being asked and discussed without the group knowing that insurance is the focus group topic.
Do you use the Internet to help you “price” purchases?
Results
Results:
1. Yes 83%
2. No 17%
Discussion
The reason for “pricing” purchases on the Internet varied. They included “getting a better deal” and “saving money” to ”not wanting to get ripped off” and “saving time and gas.” In addition, they discussed looking for items “being on sale” and specific “financing options.”
Observations
Most all focus group participants use the Internet to compare prices for a variety of reasons.
Note: This question is being asked and discussed without the group knowing that insurance is the focus group topic.
When you make your decision to purchase, do you prefer to buy over the Internet or buy at a local store?
Results
Results:
1. Internet 3%
2. Local store 97%
Discussion
The groups’ discussions focused on their actual “purchasing experience” and dealt with returns & exchanges, immediate availability, shipping expenses and “hassles,” receiving the incorrect product and not always knowing if they can trust the source if it is only “online.”
Observations
Overall, 97% of focus group participants would prefer to purchase at a local store vs. purchasing online. This contrasts with responses to the previous question which indicated that 83% are using the internet to “price” purchases.
Note: This question is being asked and discussed without the group knowing that insurance is the focus group topic.
If you have a choice when you purchase at a local store, which type of store do you prefer?
Results
Results:
1. Large “chain” store 76%
2. Locally owned establishment 24%
Discussion
The reasons for preference of a large “chain” store include, return policies, warranty service, more locations (across the country), cheaper prices, better selection and more product available in stock. However, sentiment was expressed for buying from a locally owned establishment. This sentiment was attributed to considerations such as: keeping the money in the community, support for smaller family stores and support for the local community.
Observations
While the participants had an emotional attachment to locally owned stores, practical considerations led them to prefer large “chain” stores.
Note: This question is being asked and discussed without the group knowing that insurance is the focus group topic.
For which of the following types of purchases do you believe it’s important to speak with an individual who is knowledgeable and informed about the product?
Results
Results: (Multiple Choice)
1. Cell phones 65%
2. Stereos, TVs & computers 83%
3. Insurance 96%
4. Groceries 0%
5. Investing money for savings/retirement 96%
6. Auto repair 86%
7. Vacation planning 38%
Discussion
Quantitatively, 96% indicated that insurance was an area where they needed to talk with an individual who is knowledgeable and informed about the product. However, during the discussion, concern was raised about insurance with respect to “being sold something.” In some cases this was due to the intangible nature of the product which needs to be paid for “over and over.”
Observations
Insurance had a quantitative result of 96%. This would argue against satisfaction with an Internet only approach to purchasing insurance.
Note: This question is being asked and discussed without the group knowing that insurance is the focus group topic.
Does part of your job require you to set-up or maintain an Internet website?
Results
Results:
1. Yes 34%
2. No 66%
Discussion
During the discussion the type and extent of their involvement was explored so that the moderator and all participants were aware. Those who answered yes represented a wide range of internet usage and involvement from modest to significant.
Observations
34% of participants answering yes to this question reinforces the importance of the Internet within the Gen Y age group. Once self-identified, both the moderator and group participants could appreciate the potential for bias and an “expert” expression of opinion. While 34% answered yes to this question, 66% answered no.
Note: This question is being asked and discussed without the group knowing that insurance is the focus group topic.
Approximately how long has it been since you have used the Internet?
Results
Results:
1. 24 hrs. or less 94%
2. 3 days or less 3%
3. 7 days or less
4. 30 days or less 3%
5. 90 days or less
Discussion
Everyone in the group had used the Internet within the previous 24 hrs. with the exception of those unable to do so because of a temporary inability to access the Internet.
Observations
Although Internet usage was not a criteria for selection, each of these Gen Y individuals use the Internet every day.
Note: This question is being asked and discussed without the group knowing that insurance is the focus group topic.
Do you (or would you) use the Internet to “shop” for your auto insurance?
Results
Results:
1. Yes 87%
2. No 13%
Discussion
While most are willing to price over the internet, the discussion indicated a preference for dealing with a knowledgeable person when purchasing insurance.
Observations
Virtually all (87%) participants indicate that they will use the Internet to shop for auto insurance.
Here are three types forms you could complete for an auto insurance quote. Which would you prefer to complete?
Results
Results:
1. Full form from a single company 3%
2. Contact information only 3%
3. Enough information for an estimate 50%
4. Multi-company quote form 44%
Discussion
In general, the discussion indicated that most participants would prefer an abbreviated form which would provide sufficient information for a quote (not final). It was best if the quote could include more than one pricing option.
Observations
Completing the full application would be too much for a price. Only providing contact information would be too little.
Once you have completed your form, here are several messages you might see on screen. Which one would you prefer?
Results
Results:
1.Thank you. We’ll get back to you. 0%
2.Thank you. We will respond within 24 hours. How would you prefer we contact you? 53%
3.Thank you. We will respond with a quote from several insurance companies we represent within 24 hours. 47%
Discussion
During the discussion, it was generally agreed that a response within 24 hours is acceptable. The importance of offering them a choice of contact method was also discussed.
Observations
Quote response does not need to be instant. Most would accept 24 hour turn-around. Having a choice for method of follow-up is important.
Which would you most likely respond to?
Rank from 1 – 8
Results
Results: (Composite Average Rakings)
A - Call us for a quote 5.53
B - Call toll free 5.63
C - Two fast & easy ways to shop for your auto insurance - by phone or online 4.17
D - Get a fast online quote 3.77
E - We shop – you save 4.5
F - Fast online quote with access to multiple insurance companies 3.2
G - One simple form takes only a few minutes 4.2
H - Several minutes of your time could save you hundreds of dollars 4.4
Discussion
During the discussion, a wide variety of opinion was expressed. In general, individual participants appreciated different messages for different reasons.
Observations
The rankings for each message did not vary considerably and indicate clear winners or losers. However, the importance of individual contact is clearly indicated.
Once you have submitted your form over the Internet, how would you prefer to continue?
Results
Results:
1. Receive an e-mail quote with a price from only one insurance company. 3%
2. Receive an e-mail quote from one insurance company along with an opportunity to speak with someone on the phone and ask questions about coverages and cost. 20%
3. Receive an e-mail quote with prices from several insurance companies. 7%
4. Receive an e-mail quote with prices from several insurance companies along with an opportunity to speak with someone on the phone and ask questions about coverages and cost. 70%
Discussion
Most participants expressed the desire to follow-up form submission with a phone conversation with someone who can answer questions and help them make decisions. Several individuals were able to connect this question with what independent agents can provide. Others experienced appreciation fro their experiences with independent agents.
With regard to their use of the Internet, several expressed concern about not knowing who they were dealing with. (This is a point which has been brought previously).
Observations
Both quantitative results and group discussion indicate a favorable attitude toward the independent agent.
Once you have decided to purchase insurance from a company, how would you prefer to stay in contact if there are any changes affecting your insurance coverage?
Results
Results:
1. E-mail 33%
2. Phone 60%
3. E-mail – followed by a phone conversation 37%
4. Text messaging 3%
5. Instant messaging 6%
Discussion
The group discussed the practicality of various methods and that text and instant messaging were not practical for a variety of reasons. The opinion was also expressed that text and instant messaging were too casual for this type of exchange (purchasing insurance). Overall, phone conversations seemed to be the best.
Observations
Phone conversations were best, both quantitatively and during discussion. E-mail has value as an option.
How would you prefer to receive your policy documents?
Results
Results:
1. E-mail with attachments 27%
2. US Mail 63%
3. Pick-up in person 10%
Discussion
Most participants agreed with US Mail as the best choice. However, several indicated they would like to receive e-mail with attachments since it would be more convenient for them.
Observations
Generally speaking, US Mail is preferred. However, some would prefer to have a choice with e-mail attachments as an option.