Feelings, prayers and vibes: How many Americans buy
Many Americans rely on their gut feelings, prayers and vibes when making major purchasing decisions, according to a survey by Life Happens. This sometimes creates challenges for many who wish to sell their products and services.
The survey of 2,000 U.S. adults was split evenly by generation and found that seven in 10 respondents base their big decisions to buy on various factors: intuitions (36%), prayers (29%) and general vibes (19%). Two in five Gen Zers (22%) based these choices on social media posts and a similar number of millennials (17%) said it was due to cosmic signs from the universe.
Respondents said that following these holistic signs has helped them choose new jobs (32%), decide where to move (26%) and when to end a relationship (26%). Other factors range from when to quit an old job (24%), when to get a pet (21%), or even what to invest their money in (20%).
Almost one-third of Baby Boomers (31%) purchased a home based on these signs, while 23% of Gen Zers have chosen a focus or a major in college, and 17% of millennials have started a business. And 71% of all respondents said they have “zero” regrets about their decisions.
Reasons for conducting the survey
So why did Life Happens decide to conduct this survey? In its role as creator and coordinator of the Life Insurance Awareness Campaign, the organization is always looking to fulfill its nonprofit mission to educate consumers, connecting with them with information in different and innovative ways, explained Brian Steiner, executive director of Life Happens. This survey, “To Buy or Not to Buy,” helped us achieve 2.2 billion in audience reach with over 300 pieces of coverage, including on TV,” Steiner said.
In addition, Steiner said, Life Happens wants to help the industry better understand the consumer mindset, so it can move clients and prospects from learning about life insurance to taking action to buy the coverage they need. “The survey had some interesting data points for us as an industry and as financial professionals to consider,” he added.
Key takeaways for financial professionals
The main takeaways of the survey for agents and advisors are that when people are making financial decisions, they use their intuition, gut feelings and vibes, Steiner explained. And overall, people said that their heart takes the lead over their head in finances and financial decisions a third of the time.
Nearly half (47%) of those surveyed believe that if it “feels” right to them, that’s enough to justify a major expense and they’ll figure out how to pay for it later. “That belief is the strongest amongst millennials (61%),” Steiner pointed out.
People also turn to other people or sources for advice before making a large purchase (a purchase that is over $500), he added. Gen Zers consult six; millennials, seven; Gen Xers five, and Baby Boomers, three.
And these are the people they consult for advice:
- Their partner (40%)
- Parents (27%)
- Best friends (25%)
- Siblings (18%)
Consulting a financial professional (7%) comes in even behind Googling (15%) and social media (9%) and the same as checking in with “the vibes” (7%).
The survey revealed other information of interest to financial professionals, Steiner pointed out. For example, when asked how prepared they feel financially for end-of-life (funeral costs, having life insurance, trusts, etc.) the results show that while Boomers lead the way (59%), millennials are ahead of Gen Xers, 57% vs 48% respectively, while 44% of Gen Zers feel financially prepped.
Regarding what would make them prioritize end-of-life planning, the top response was a health scare for themselves (28%), followed by a poor health diagnosis (26%). Meeting with a financial professional came in at 12%, which is well below “nothing in particular,” chosen by 22%, Steiner said.
Getting past the vibes
For some of the steps that agents and advisors can take to move past the “vibes” and get closer to selling their products and services, Steiner shared the following observations and steps:
- Millennials and Gen Zers have the strongest emotional spending behaviors and consult the highest number of people/sources, showing they can be both impulsive and socially influenced.
– Step to take: “Financial professionals should acknowledge those emotions and validate the feeling of being proactive, not just “prepared,” he said.
- People admit that what they see as “end of life” preparation, such as getting life insurance, is often triggered by a health scare, instead of by proactive behavior.
– Step to take: “Show that life insurance can be a simple first step toward peace of mind—not a scary end-of-life checklist,” Steiner said.
- The survey shows that people do care about being financially secure—they just need a relatable and emotionally intelligent prompt.
– Step to take: People don’t want to be talked out of emotional spending; they want someone who can validate their feelings while guiding them to smart action, Steiner said. Life Happens’ Real Life Stories, like the Pleasants family’s “Protected by Planning,” show the emotional side of how life insurance has helped families in their time of need. “These are a good starting place for financial professionals to start that more emotional conversation,” Steiner said.
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