Main Benefits of Direct Mail for Insurance Agencies

You don’t have to break the bank on unproven marketing strategies to begin earning more clients for your insurance agency. In fact, one of the best methods for earning more clientele for your insurance agency is through one of the most traditional marketing methods around – the mailbox. If you’re unsure of what the benefits of direct mail for insurance agencies are, you’re in the right place. We’ll provide you with all of the insights you’re seeking below!

Using Direct Mail for Insurance Agency Marketing Reduces Customer Acquisition Costs (CAC)

Direct mail’s ability to lower your customer acquisition costs is one of the main reasons so many agencies have been relying on it for years. Reducing the amount you spend on acquiring new customers allows you to reinvest more funds into other areas of your business. To calculate your customer acquisition costs, simply divide the revenue earned during a set period of time by the amount you spent on marketing during that same period. Let’s say for instance that you sell life insurance and you spent $1000 on a Google Ads campaign that delivered 20 new customers over the course of a month.

 

In this case, your customer acquisition cost is $50 per customer. Now let’s say for instance that during the next month you leverage GrowMail’s Discount Zones for a mailing campaign that entails sending 1000 postcards for as low as $0.23 each. Since these mailers were sent to an area with a high concentration of elderly citizens who are on the market for life insurance policies your campaign results in 30 new customers. Conducting our calculation from above, we can see that this method reduces your CAC down to just over $7. Think about the impact those savings could have on your agency as a whole!

Increased Engagement With Targeted Messaging

Audiences nowadays expect personalized marketing messaging. If your marketing materials aren’t directly addressing certain issues they’re facing, they likely won’t respond. That’s where targeted direct mail enters the picture. With GrowMail’s targeted direct mail software, you can build custom mailing lists based on a variety of demographic insights, including:

• Age:
  Let’s say you’re an insurance agent hoping to sell more auto insurance policies. In this case, building targeted lists with age allows you to focus on recipients that are within the age range of roughly 17-50 allows you to connect with families who may have a new driver earning the keys in the near future while still connecting with parents who drive. Mailing blindly could result in your postcards reaching the households of elderly citizens who no longer have driving privileges, or to families that have had the same policies for decades. 
• Homeownership Status:
  Now let’s pretend that you’re hoping to sell more home insurance policies. In this case, the ability to drill down on homeowners in a certain location enables you to avoid mailing renters that have no need for a home insurance policy. 
• Income:
  Imagine that you’re going after more clients in need of business insurance. An agent in this scenario benefits from weeding out low-income leads that likely aren’t in position to own and operate their own businesses by targeting via income levels. By sending postcards advertising the benefits of business insurance to people that make at least $100,000 annually, you’re more likely to get the response you’re hoping for. 
• Family Size:
  Let’s say for instance that you’re hoping to sell more health insurance policies. In this case, the bigger the household size, the more likely it is that your campaign will result in a new policy. On the other hand, targeting households with a family of one or two allows you to potentially onboard policyholders who are brand new to the marketplace. This could be the perfect formula for earning new, lifelong clients.

Better Brand Recognition By Leveraging an Omnichannel Strategy

Don’t underestimate the power of an omnichannel marketing strategy. Leveraging omnichannel marketing enables you to rest assured that audiences receive your message regardless of their preference. That’s because an omnichannel strategy entails spreading your message throughout various channels where audiences receive messaging. And one of the biggest benefits of direct mail for insurance agents is the fact that it can easily be integrated into an omnichannel strategy.

 

Suppose you’ve got a social media presence that entails hundreds of followers and dozens of stellar reviews. Even though these are all great to have, there’s still a segment of potential leads that don’t have a social media presence. By leveraging direct mail to feature your positive reviews and pleasant customer experiences, you could be activating a whole new segment. And as an added bonus, reinforcing your digital marketing efforts with direct mail does wonders for boosting brand recognition.

Frictionless Tracking

Tracking is among the most vital aspects of direct mail for insurance agencies. Just like with an email marketing campaign, you can easily track how well your direct mail marketing efforts have performed. A few ways you can track your campaign results include:

• QR Codes:
  
  QR codes are handy for more than ordering food at restaurants. By including a QR code that leads recipients to a specific website where they can request a quote or more info, you can get an idea of how impactful your mailers are once your campaign concludes. This provides you with crucial insight for correcting course on future campaigns.

 

• Unique URL & Landing Page:
  
  Including a URL specific to your campaign offer accomplishes multiple goals. First is the ability to easily direct recipients to an online destination for completing your desired next steps. Additionally a unique URL captures the attention of curious recipients that are eager to learn more about your offer. Once your campaign ends, you’ll receive a report detailing how many recipients navigated to your landing page.
  

 

• Phone Number:
  
  It’s a safe assumption that you’re already including your phone number on your postcards. Since that’s the case, why not include a tracking-specific phone number? Doing so allows you to easily see how many leads have called in to ask about new policies as a result of your mailer. This also makes the process of associating new policies with your mailing campaigns easy.

Learn More about the Benefits of Direct Mail for Insurance Agencies From GrowMail

If you’re still skeptical about the benefits of direct mail for insurance agencies, schedule a free consultation for GrowMail below. Our team of proven, knowledgeable marketing specialists are eager to help you embark on your journey with direct mail. For more than two decades, insurance agents throughout the nation have relied on GrowMail for better marketing  results. To find out begin your first mailing campaign, download a free insurance agency postcard template today!