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Tips and Trends for Insurance Direct Marketing

Michelle Peel

It may seem like every time you turn on the TV, listen to the radio or open the mailbox you are greeted by a mascot, movie star or character trying to sell insurance. In fact, Flo jokes in a recent radio commercial, “Don’t change the channel; I’m on all of them.” So if it seems like insurance advertisements are everywhere, including the mailbox, it’s because they are and the competition is fierce.

In fact, according to reports from Comperemedia, from 2009-2013 Property and Casualty insurance companies increased their direct mail volumes by 12% while total mail volumes across all sectors increased by nearly 9% during the same period. Property and Casualty insurance companies sent nearly four billion pieces of insurance direct mail last year.

And while the marketing efforts of these types of insurance companies have brand awareness and customer retention goals, when it comes to direct mail, it’s all about customer acquisition. A staggering 96% of direct mail efforts focused on acquisition compared to just 4% for retention.

To gain these new customers, marketing messages highlight potential savings, quality of service, claim service, and customer satisfaction. Comperemedia cited the following trends in techniques used in acquisition direct mail campaigns:

  • 71% include a website address as a call to action
  • 25% include a Quick Response (QR) Code
  • 18% highlight an Affinity Relationship

Comperemedia revealed that another trend gaining popularity with insurance direct mail acquisition campaigns is offering quote incentives. These provide consumers with a gift upon receiving a quote. The most popular items are gift cards (gas, retail, and food), free merchandise (emergency roadside kits and calculators) and sweepstakes incentives (for gas and cash).

Through our experience, we’ve developed a few best practices to consider for successful direct mail campaigns specific to this growing and competitive vertical. Like many commercials, you may have heard some of these from us before, but that’s because we know they work:

  • Engage in cross-channel marketing by including a QR code to your direct mail piece that leads prospects to the agent’s website with unique content.
  • Increase gross response rate (GRR) and return on investment (ROI) by affixing an instant access quote card with the agent’s phone number as a call to action. Personalize the card so the prospect feels they are getting a special offer or incentive.
  • If sending a saturation mailing to a specific geographic location, you may qualify for walk-sequence postal rate discounts.

Direct mail continues to help insurance companies grow their business, so consider these trends and best practices to create more successful Property and Casualty insurance campaigns. Contact us to learn more about our direct mail services and how they can serve your needs in the insurance industry.

link https://www.iwco.com/blog/2014/05/02/tips-trends-for-insurance-direct-marketing/
Michelle Peel

Author

Michelle Peel

Marketing and Corporate Communications Manager and graduate of Elizabethtown College. Bringing the “make it happen” attitude to IWCO Direct for more than eight years and the direct marketing industry for more than 20. Favorite recognition: When her daughter was asked in school what she wants to be when she grows up, she responded, “Just like mom.” Pittsburgh Steelers fan who enjoys dancing, shopping, and spending time with family.

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