Direct Mail

How Can Insurance Providers Leverage Direct Mail Marketing?

By 17 December 2020August 20th, 2021No Comments
direct mail for financial communications

Direct Mail Marketing for Insurance Providers

With almost every business in the world using digital marketing, it’s getting difficult for small business owners to get the amount of attention they demand.

Plus, most people today opt for ad blocks on their devices so they can totally forbid marketers to show them ads of any kind.

direct mail for insurance providers

With all of this going on, can you see your brand reaching new people and making any great connections with your prospects?

We don’t.

It’s hard to even connect with your audience in such conditions, let alone get them to invest in the insurances you’re selling.

Fortunately, there’s a way out. Direct mail marketing. And today we’ll uncover how exactly it can help you to increase your conversation rate and quality of leads.

Let’s dive right in.

Marketing Challenges Faced by the Insurance Industry

So digital marketing is not is the only obstacle in your way. Being an insurance company, you’re only offering life insurance, business insurance, property and casualty, long-term care, auto insurance, health insurance, and much more.

Considering this reason, your target audience is comparatively less than others. Hence, you need to stand out from the crowd and direct mails is a great way to do just that.

Here are a few more challenges that you might face being in the insurance industry.

Competition

With rapid growth, the industry is attracting competition at a considerable rate. Every country currently has thousands of insurance industries. The market is loaded and the competition is tough. Hence, you must try methods that can keep you ahead of the competition. A few things that you can do are improve your inbound approach, understand your audience’s needs the better way, spend on solving your prospect’s problems through content, build trust, and build a reputation for your brand.

Shifting demographics

To send direct mails precisely to the right audience, you need to understand their demographic details the best way. However, these details keep on changing, for instance, their age, financial status, family status, etc.

Hence, your database should always be updating so you can target the right person at the right time. For instance, there should be a system in place to send an automatic message about your life insurance policy to someone you targeted years ago, and who has now turned 40.

Cost-conscious customers

Before you start investing a good amount in your personalized marketing, you need to weed out the cost-conscious customers. But before you do that you need to understand, whether they’re really cost-conscious or they have limited knowledge about your industry.

You can send them educational mailers in this case.

Customer experience

You also need to improve the customer experience to make sure you keep getting repeat business. Or probably just to keep most of the customers hooked with your services.

You can also send your prospects or existing customers postcards on various occasions to keep on reminding them about your brand.

Proper communication

One of the most important parts of successful marketing is proper communication. And most companies send generic marketing messages to their audience just for sake of getting more leads. With improper communication and bond-building, it’s hard to attract quality leads.

Direct Mail Marketing in Insurance Sector

Insurance agencies run on trust. If your prospects won’t trust you, they’re highly unlikely to buy from you.

But everything goes step by step. To build trust with your audience, you need to make good connections with them. And no generic ad is going to do that for you. You’ll need to send personalize your interactions with them.

At this point, you must be thinking it’s next to impossible to go and interact with each of your prospects in person. Well, don’t worry. That’s not what it is. Just personalize the message interacting with your customers on your behalf, and do it in the form of tangible direct mails.

The major reason behind it is that direct mails have a great open rate. And no matter, how personalized your message is, if your readers won’t read it, it’s futile.

So get them to read your message with direct mails and personalize each of your communication with it.

Additionally, most businesses just opt for digital marketing as it’s easier to carry out and cheaper than direct mail marketing. However, it can give you an advantage over the competition. With direct mails, you can interact with the audience better than the competitive insurance firms.

So communications will get better. Bonds will strengthen between you and your clients. You can even outperform the competition with direct mails.

But here’s the catch, to get it right, you’ll need to do it right.

Insurance Direct Mailer Leads

You must have had heard a lot about targetting the right leads, doing your research on the audience, and then keep on filtering it.
Well, when you’re in the insurance industry, they all work, but you should also know about the types of leads available in the market. How you should target them. And why should you or shouldn’t you avoid some of them.

So here it goes,

Best Quality leads

The best type of leads available to you is the ones genuinely interested in your offer. And to weed out the freeloaders or the bad quality of lead, you must specify exactly what they should expect or what are they getting into.

For instance, you clearly mention the word, “life insurance” in your direct mail copy. It’ll surely reduce the number of responses you’ll get, but the quality of responses will increase tremendously.

Only the people actually looking for life insurance will write back to you.

Generic Leads

The next type of leads to target are the generic leads. The quality of this one is not as top-notch as the previous one, but it has its own benefits.

This is the one where you don’t specify life insurance in your copy. Instead, you use some generic text to convey your message, show them the benefit of life insurance, and get them to your website.

Sometimes, you may get responses from people who may not want to invest in life insurance at first. But gradually, if your follow-up game is good, you can read what they want to say without them actually saying it, aka psychological understanding. And your sales team is just perfect at converting.

Then, you may not know but you can drive a crazy amount of customers from this type of list.

The Bribe Leads

These are the least liked ones among all. As the name suggests, it may attract freeloaders. But most insurance marketing companies have gained great value out of it.

You can also try offering something in return for some useful client details. And depending on your method and copy, you may succeed.

Direct Mail Lead Vendor

Yes, there are direct mail vendors selling your leads. To get an idea, you can expect to invest $30-$35 per lead if you opt to go for this way of getting leads.

PostGrid for Insurance Providers

PostGrid’s direct mail automation solutions can help insurance providers cope with the various marketing challenges and advertise effectively. They can use our platform or API to automate their direct mail campaigns and reduce the overall time, effort, and resources needed to plan a direct mail marketing campaign. PostGrid provides all the direct mail solutions mentioned above and assists insurers in every step of their marketing efforts. Insurance companies can benefit from our smart automation solutions that can help them customize and personalize their direct mails, include compelling offers, print them, mail them, and track the results easily—together on one unified platform.

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