Selling a legacy product is tough.
Take for example, insurance, many imagine a complicated mess fighting over payouts, being overcharged premiums and having to deal with phone calls and fax machines to interact with policyholders.
This is in complete opposition to the Millennial way of doing things.
So how do you sell a legacy product like insurance to Millennials?
First, you throw out the old model of insurance. Rework it completely, then, advertise this new model in a completely innovative way that attracts and engages.
This is exactly how Lemonade completely disrupted the insurance industry.
Starting From Scratch
“The average big insurance company is 95 years old,” says Lemonade CEO Daniel Schreiber. “They date back to the industrial revolution and have resisted every technology and business revolution since then. It’s time to start from scratch rebuilding every part of the chain.”
What does that mean practically?
Start by building insurance you can buy from your phone, making that process instantaneous and delightful.
Most customers can be insured in less than five minutes by entering information into their beautifully intuitive (and well-designed) app.
You’ve got the app, now what does this new insurance model look like?
Instead of acting like legacy insurance carriers, where every dollar not paid out in claims is a dollar more in profit, Lemonade treats the premiums you pay like it’s your money.
So, at the end of the year, money not paid out in claims is donated to the charity of your choice.
This allows Lemonade to make another game changing innovation: a frictionless claim process.
Most claims are settled instantly through artificial intelligence and payouts in as quick as two days.
No more fighting with insurance agents and faxing reports to get your claim money.
But what are the best ways for a company like this to announce itself to the world?
Complicated Stories, Made Simple
When Lemonade came to us, we were blown away by the thoughtful nature of their product and jumped at the chance to partner with them.
In addition to the challenge of telling the Lemonade story, a complicated one about insurance claims, premiums and AI, Lemonade also needed a video that would reach out to millennials, a generation who largely neglects the need for insurance at all.
These challenges led us to using our Illustrated Animation to make a big splashy introduction.
Basing the video around the design aesthetic of the Lemonade’s app and website, the video uses a white background to pop the pinks and blacks.
We tell the story of why millennials need insurance and how Lemonade fills that need in a way that turns all the legacy failings of insurance into advantages.
The illustrated animation video was viewed more than 1.5 million times before Lemonade launched in the US and currently has been viewed more than 10 million times.
Today this video is still used to introduce Lemonade leadership at events and television appearances.
Lemonaders of New York
Introducing the product was not enough.
After launching in New York, Lemonade asked Colormatics to capture real Lemonade users enthusiasm for the product.
After finding some of these amazing individuals, we put together a series called ‘Lemonaders of New York.’
Meeting with Lemonade users on the streets of New York, Colormatics constructed some great stories about all the important aspects of Lemonade: the ease of use; the charitable donations; and the no-stress claims process.
The video series was a great success at getting potential buyers to see the true story of users and an excellent tool for re-targeting for conversion.
A Millennial Success Story
Lemonade targeted the millennial market by creating not only a product focused on millennials, but video advertising that appeals to millennials.
Based on their data, 87% of customers are first-time insurance buyers, meaning Lemonade successfully appeals to an underserved market of millennial users.
We were able to create simple, aesthetically pleasing advertising that cut out the complicated stuff, in the same way that Lemonade created their product.
Simple. Efficient. Beautiful. Colormatics and Lemonade.
Link to download the digital advertiser guide to selling to millennials