An insurance agent has several options for generating insurance leads, including purchasing email lists, buying leads online, and investing in a direct mail campaign. If you are considering using direct mail, here are a few things you should know to maximize your return and ensure that you are investing your marketing budget wisely.
Advantages Of Direct Mail
In this age of digital marketing and online leads, is there still a place for direct mail? Despite a changing landscape for the sale of insurance, direct mail is still a proven lead generation method with several benefits:
- Hit your target market: Direct mail can be distributed to specific neighborhoods, which means you can identify and target the demographics and income levels that best match your product offering.
- Reach a broader audience: Virtually everybody participates in the postal system, but not everybody uses the Internet. Direct mail can help you reach people that you might miss using other means of lead generation.
- Track success: Because the campaign is targeted so specifically, you can determine your response rate and calculate the return on your investment.
- Efficiency: Compared to cold calling, a direct-mail campaign takes more initial effort, but has lasting benefits as consumers can keep the printed materials with your contact information and marketing messages.
Disadvantages Of Direct Mail
Make sure that direct mail meets your needs before investing too heavily in it. Keep in mind these factors which may affect the return on your investment.
- Lost in the shuffle: How much junk mail do you read? If you're like most consumers, you glance through the pile of advertisements and perhaps read and keep the pieces that jump out at you. It's difficult to stand out from the crowd as for many people direct mail from an insurance agent is mere junk mail.
- Low response rate: Sending thousands of direct mail pieces is expensive and response rates are not generally high: typically between one and three percent. On the other hand, online insurance leads result from a customer inquiry, so your investment is more likely to pay off.
- Longer sales cycle: Remember that direct mail insurance leads also take longer than other types of leads, with the time it takes for materials to reach the consumer and the time it takes them to respond.
- Market limitations: Younger people are less likely to open and respond to direct mail, so you may be inadvertently excluding a large portion of your target market by relying on it too much.
Dos And Don'ts Of Direct Mail
If you do decide that a direct mail campaign is right for your insurance business, use these tips to get the most from your investment:
- Reduce your costs: Narrow your target market and identify where they live. If you are selling Medicare supplements, mail to areas with a larger senior population. Reduce your materials expenses by using smaller envelopes; a standard sheet of paper will easily fit into a 6" x 9" envelope when folded in half.
- Stand out: When it comes to getting noticed among junk mail, sometimes less is more. A sales letter in a standard envelope that looks like a personal letter is more likely to get read than a brightly colored postcard. Handwriting addresses takes a while, but it's well worth the effort if it gets your pitch read by prospects.
- Improve your response rate: Make it easy for leads to respond by providing several options such as a vanity toll-free phone number, local number, email address, website, or QR codes.