It is not surprising that Lemonade is going after the younger customer – this is the demographic that doesn’t even feel the need for insurance. So it is only right that they are made aware of the fact that insurance is a good thing – and a necessary thing for their future. And to top this off, the cost of claims is rising. And this young customer base would see it as an unnecessary expense.
And while going after this group of younger customers, it is but natural that the brand chooses to place an emphasis on customer experience – something that is so integral to any encounter this demographic has with a brand.
Gen Z does not know life without a smartphone. They know digital ads, social networks, and mobile everything since they were practically born with a mobile device in their hands. Convenience is paramount. But they are influenced by their peers and what is trending on social media. But most importantly they are known to value a customer experience that is digital-first, responsive, empowering, and transparent, when they engage with brands.
The young customer is used to the convenience that smart phones have brought to their lives – so it is very important that for them to certify an encounter with a brand as one that was a great experience, convenience is key. Lemonade is going in the right direction, highlighting the fact that they will experience convenience and ease when they work with Lemonade as their insurance provider. One focuses on the easy and effective customer service that Lemonade offers, one about Lemonade’s quick filing of claims and the third about Lemonade’s jargon-free rhetoric.
More and more brands are starting to realize the importance of great experiences in a customer’s journey with them. Customers are already used to a high level of satisfaction in their encounters with some brands and they expect it of others. And they are ruthless in their moving away from brands that don’t offer them that.
So while the spots focus on Lemonade’s offerings of great customer experiences, the brand has to follow through by implementing what they have promised. Then, and only then, will things turn around for Lemonade and they will start converting young individuals into customers, and the profits will roll in.