How Insurance Agents Can Get More Leads From Direct Mail
With the rise in influential internet spheres, like social media, many insurance companies forget the benefits of using direct mail to increase their leads. Although technological forms of marketing are highly successful, direct mail can be just as effective because it physically impacts potential consumers to increase business.
To ensure you don't miss out on this important marketing tactic, we'll show you the complete process of how to get more insurance leads using direct mail. If done successfully, you'll see a substantial increase in clientele, and you'll have several tools you can use routinely to ensure this trend continues.
Do Mailers Work in Insurance?
Marketing your business is required to generate revenue. Unfortunately though, how you spend your marketing dollars is not as simple as you might think. First, you have to decide for your own business how you want to be known in your marketplace. Despite it sounding like an “old school,” archaic way to spend your marketing budget, direct mail is still a valid and potentially successful tool.
“The 2012 Channel Preference Study for Both the Mobile and Non-Mobile Consumer from Epsilon shows that 62 percent of Americans enjoy checking their physical mailbox, with 73 percent of U.S. consumers saying they prefer direct mail for brand communications because they can read the information at their convenience. A whopping four-fifths (79 percent) of potential customers will act on direct mail immediately according to Direct Marketing Association (DMA) research. And while Millennials may always seem to be on their phone or social media, they also report an affinity for direct mail. ExactTarget’s 2012 Channel Preference Study found more than half (57 percent) of young people have made a purchase as a result of a direct mail offer.”
(Source: https://www.insurancejournal.com/magazines/mag-features/2015/03/09/359395.htm) Studies have shown that direct mail need not be overlooked when it comes to marketing your business!
Outline Your Marketing Goals
Before you even consider your direct mail's contents or format, you need to have a clear image of your goals for this particular marketing tactic.
By mapping out and detailing what you hope to achieve through direct mail, you can focus your message, target audience, and other essential elements to this tactic's success more easily.
Some of the most common goals include:
Increasing clientele
Informing current and potential clients about a new service
Increasing client traffic either in-store or on online forums (ex. company website or social media)
Promote a particular product
Once you have these goals in mind, make sure to record them somewhere safe to refer to them later. This way, as time goes by and more decisions have to be made, you can refer to your goals and determine if a particular decision aligns with them or not.
How Much Do Direct Mail Leads Cost?
Many people enjoy being able to physically interact with something, which is why technological tactics haven't completely taken over direct mail marketing. However, one setback of direct mail is that it isn't free, unlike social media and other internet spheres.
Therefore, it is important to create a company budget before you start getting into the more creative side of the process, such as writing content and choosing a format.
The overall cost of direct mail marketing truly depends on the company and its willingness to spend.
On average, companies will spend anywhere from $.50 to $3.00 per piece on a direct mail campaign. This means that the lowest cost per thousand (CPM) would be $5,000. And this is before you consider the cost of your crew's time and labor creating and managing these pieces.
There is a wide range of factors that will affect the cost per piece, such as:
Format (ex. brochure, pamphlet, letter)
Color and design choice
Paper choice (cardstock versus standard)
Quantity printed and mailed
Copywriting costs
Postage rates
You don't want to make the cheapest, blandest piece because your consumers will immediately see it as boring junk mail, but adding all the bells and whistles to catch their eye could easily add up.
Here are some things to consider when building your direct mail marketing budget:
What type of piece are you sending? (A flyer, brochure, letter, postcard, etc.)
Paper/ink choice - the higher the weight or stock, the higher the cost. Do you want to print in color or black and white? Are you printing double-sided?
Design/copy - who is designing and writing your direct mail materials? What does it say about your brand? Does it accurately represent your business?
How many items are you sending, and how often?
Postage - consider how much each item costs to send and decide how many items will fit your budget.
This is why it is important to have a rough estimate of how much you are willing to spend on each piece and the minimum number of people you want it to reach so you don't end up exceeding company funds further down the line.
Pinpoint Your Audience
Your audience is arguably the most influential factor in this entire marketing operation. You must distinguish exactly who this content is made for before you start writing.
A common direct mail marketing mistake is that companies will try to be too inclusive with their content. As a result, their information is often over-generalized and interests fewer readers because they don't feel it pertains to them.
You want to have a clear image in your mind of the ideal direct mail reader. Make sure this individual aligns with your insurance company goals, so everything remains focused throughout the process.
The more focused you are in the early stages of this process, the more successful this tactic will be, and the less money you will waste trying to convince everyone to use your services.
Consider essential elements of this ideal reader. Are you trying to convince someone of a particular:
Age (ex. convincing young adults to start insurance early)
Demographic (ex. lower rates of uninsured individuals within a particular ethnicity)
Gender (ex. gender pay gap in car insurance rates)
Socio-economic class (ex. making insurance more affordable)
You'll also want to consider how knowledgeable your ideal reader is about insurance. If you're targeting current clients, you won't have to be as descriptive about who you are and what you do, whereas those elements are necessary if you're trying to target new readers to increase clientele.
All of these elements will affect the message you create, the language you use, where you send your direct mail, and many other factors.
Create a Clear Message
With your company goals and ideal audience in mind, it's time to write a clear and concise message to your reader.
Many content creators will consider the 5 W's and how a common analysis method is used. This helps to compose focused content with a strong foundation. In the case of direct mail marketing, these questions might look something like this:
Who are you writing for?
What are you selling?
Why should they purchase it?
When do they need to act?
How can they do this easily?
We'll discuss these questions in further detail, along with additional factors that will help you create the most effective and persuasive direct mail to increase your insurance leads.
Who Are You Writing For?
We've discussed this briefly in the previous section regarding the ideal audience for your message. However, although holding that ideal consumer in your mind can be an extremely helpful tool, there is more to consider here.
Firstly, you want to recognize that the person you are ultimately writing this content for is the reader. Yes, the purpose of direct mail marketing is to help you as a business, but if the reader doesn't feel like the content is genuine and tailored to them, they won't be interested in your services.
Secondly, you'll want to use your ideal audience image to help you determine the best language for the reader. If this person is educated and knowledgeable about the topic, then you can use more industry jargon.
However, if your goal is to reach out to the everyday consumer on a more personal level, then you'll want to use more casual language without incorporating slang that might alienate more readers.
Overall, every bit of content within your direct mail should be carefully tailored to the reader so they connect to it and heed your call to action.
What Are You Selling?
The short answer to this question is insurance, but what you're really trying to do here is fill a need within your consumers. You could potentially rephrase this question to: "What are you selling that competitors can't?"
In 2019 there were 5,965 insurance companies in the U.S., and for the most part, they're all selling the same thing. What you need to do with your direct mail is describe your product in a unique and competitive way that sets it apart from the thousand other products just like it.
Start by recognizing the customer's need for the product sympathetically, and then describe how you can fill that need better than anyone.
Start strong with something like, "Tired of paying too much for your car insurance? We can help reduce that cost by 10%! Here's how."
Right away, the reader knows the issue or need, the benefit you are offering, and is enticed to read on for more information. Once this is established, you can continue to the next point of "why."
Why Should They Purchase It?
If you've done your analytical research right, you've already sent your direct mail to a consumer that needs your service. Of course, they might not know this, and you need to give them a little nudge.
Plus, analytics aren't omniscient, and sometimes your mail will fall into the hands of someone that doesn't think they need your product, which is why you need to persuade them otherwise.
The tricky part about direct mail is that everything relies on this piece of paper. You get one shot to convince the reader they need what you're selling, and that's it. Many of them will simply see an unfamiliar company name on an envelope and deem it to be junk mail meant for the trash.
If they're curious enough to read the content of your mail, you need to keep them hooked from beginning to end by explaining why this product is perfect for them.
You'll want to clearly describe the benefits of your product as quickly and simply as possible. The longer it takes the reader to get through your content, the more likely they will give up on it.
When Do They Need to Act?
Now! A call to action is one of the most important elements of your direct mail content because it helps convince the reader that they need to get your product as soon as possible.
This is typically listed at the end of the message, so the reader has all the necessary information before they put down your direct mail and act.
Many insurance companies will provide some sort of incentive to help this along, like providing a limited discount or offering a free service, such as a consultation, before purchasing the actual product.
The call to action doesn't always have to focus on buying the product. Although a "buy now" closing can certainly be effective, it is sometimes more beneficial to convince the reader to contact your team for further questions or guidance.
This way, your insurance agents can use their own persuasive powers to eliminate any doubts the new client might have and ensure that they reach the end goal.
How Can They Do This Easily?
Your call to action is virtually useless if you don't provide the reader with the means to perform it. If you simply tell them to "buy it now" but don't tell them where, then they aren't going to take the initiative to find out on their own.
Therefore, you need to clearly state how they can obtain your services in an easy and stress-free manner. Companies will typically leave a phone number, email, or company website where the reader can discuss the mail with an employee or purchase the product themselves.
Some will even take this one step further and detail exactly how they can purchase the product, step-by-step, so the client is less likely to quit halfway through the process.
Choose the Right Format
Direct mail doesn't always have to entail the classic stamped letter format. In fact, there are several other formats your company can choose that might be vastly more effective depending on who they are for, the contents of your message, and where they will be used.
Pack a Punch with Postcards
Postcards are potentially the most effective format for direct mail for a few reasons.
Possibly the most important is the fact that postcards don't require any sort of envelope for the reader to open. This is the biggest obstacle for direct mail because there isn't much on an envelope to entice a reader to open it. With postcards, this obstacle is completely eliminated.
Another benefit of this format is that they usually have vibrant covers that will catch your reader's eye enough to entice them to flip it over and glance at the contents.
The most significant drawback of postcards is that you have very limited space, so you'll want to only use them for short and simple messages.
Companies will often opt for this format when they want to thank a client for purchasing a product and entice them to continue, perhaps through a subscription or with a coupon code.
How to Design Mailers
If you like the idea of a postcard but you need just a little more room for content, flyers are a great alternative.
This format gives you a lot of room for a creative design filled with vibrant colors and imagery to keep readers interested.
You can easily include bulleted lists with your product information and benefits, as well as setting a corner aside for company information like phone number, website, address, etc.
Show Your Professional Prowess with Brochures
A brochure has all the benefits of a flyer but gives you even more space for a much more detailed description of your product or goal.
Companies will typically opt for the classic tri-fold brochure format and fill it with persuasive but informative content that gives readers a more extensive understanding of what they're trying to achieve before promoting a call to action.
Brochures are great for demonstrating the company's organizational skills and professionalism. If your goal is to send readers something that is visually attractive but filled with content, a brochure can't be beaten.
Get Personal with Letters
Letters are possibly the trickiest format on this list. On the one hand, a simple black and white letter is often the cheapest option for direct mail, which allows you to send more to a larger number of readers than the other options that rely heavily on visuals and design.
On the other hand, the reader must be curious enough about your letter's contents to open the envelope. Sometimes you can entice them by printing a simple image on the envelope or using a windowed envelope to give them a sneak peek of what's inside.
Once they've opened your letter, you have a whole page's worth of space to provide a personalized message to entice your reader to act.
Letters often connote a sense of importance, whereas the other formats are a bit more casual and entertaining, so reflect on the kind of tone you want for your message before you choose your format.
This is by far the most common format used for direct mail, but since there is an extra step before the reader gets to the content, it has a higher chance of being unread. Therefore, it is essential that companies take that extra step to entice readers to glance inside.
Go Big or Go Home with Full Packages
This is the priciest option for direct mail, but it can be extremely effective, considering full packages typically include:
A personal letter
A brochure
A rate sheet
A mail-back response card
If your goal is to hit them with everything you've got, then you'll want to opt for a full package. Not only will they have all the information necessary regarding your product or goal, but they'll also have a clear call to action and an easy way to do so.
Full packages ensure the reader has absolutely everything they need to confidently invest in your services and gives you a wide range of formats to provide that information however you please.
Types of Effective Copy
“Copy” describes the core text that narrates to the potential clients through your mailer. Much of the copy depends upon location and target audience. Therefore, some of this comes via trial and error. No matter what, you’ll want to add your logo as well as contact information so they know how to contact you. You’ll also want to list what
You will want to add something catchy to get their attention. A couple of examples include:
Looking For Insurance? We’ve Got You Covered
It’s Summer Time! Make Sure Your Boat is Covered.
Are you looking for savings? Let’s Bundle your Home and Auto!
How to Get a Bulk Mailing Rate Discount
With the cost of everything going up, we all want to save money with discounts. Discounts are applied to orders that meet a certain minimum qualifications. At the time of of this blog, some the current minimums required for discount include:
First Class Mail: 500 pieces
USPS Marketing Mail: 200 pieces
Media Mail: 300 pieces
Parcel Select: 50 pieces
Every Door Direct Mailing (EDDM): 200 pieces
Be Selective with Your Recipients
Once you have all the nuts and bolts of your direct mail marketing down, it's time to start sending them out into the world. Just make sure you don't send them to the whole world.
It might be enticing in the beginning to send your direct mail to as many readers as possible, but in reality, you'll want to be as selective as possible in the beginning.
Sending your direct mail to a vast number of randomized recipients is a quick way to blow company funds with minimal results. Remember the ideal audience that you've been picturing throughout this process and use that to help you decide where your direct mail will go.
A good start is to choose recipients from a list of past or current consumers if you're trying to sell a specific product or service. If they enjoyed their experience, they're more likely to return. Plus, your company should already have their personal information, like address or email.
If you're trying to attract new clients, it's best to target those within a certain region, demographic, or other defining factors you used to create your ideal consumer and stick to that on a small scale.
To increase your return on investment (ROI), go the extra mile in personalizing these limited mailouts. One easy way to do this is to address the recipient by name in your content. This will help them feel like you're targeting them specifically, rather than receiving a generalized letter that thousands of others have received.
Track Your Results
Advertising through direct mail can be extremely effective, but your company won't know this unless they create a system to track the results.
It is important when you create your overarching goal that you add some way to measure its success to compare your end goal to current statistics. An example goal would be a 10% increase in clientele or 250 sales of a particular policy.
There are a few ways you can track the impact of your direct mail, such as:
Creating a number dedicated to direct mail advertising that is equipped with call-tracking
Include "direct mail" as an option on return slips or online questionnaires that ask how a customer heard about you or the product
Build a direct mail campaign landing page with a trackable URL
Release discount or coupon codes exclusive to direct mail recipients
By tracking your direct mail advertising results, you can determine the campaign's success and if any changes need to be made to either improve or expand its influence.
Stay Dedicated for the Long-Term
Direct mail comes at a risk, just like any form of advertising. You might print 1,000 brochures, and only 10 of the recipients will heed your call to action and help you achieve your goal. The key is not to give up after the first few batches.
Some sources recommend that insurance companies mail their content to recipients on a monthly basis for at least six months. This way, you start to increase your brand presence and recognition, and you have ample time to learn what works and what needs to be changed in your content and tactics.
Over time, you'll see a steady incline in responses which will increase your business and allow you to expand your direct mail to more potential clients. As a result, your brand name will become more recognizable and potentially even dominate the market.
Sources:
https://plumdirectmarketing.com/blog/insurance-direct-mail-tips/
https://agedleadstore.com/integrating-direct-mail-in-your-life-insurance-business/
https://www.castlepress.com/page/direct-mail-more-effective
https://www.businessnewsdaily.com/15776-direct-mail-marketing-guide-for-small-businesses.html
https://www.themailshark.com/resources/guides/how-to-track-measure-direct-mail/
