Company: Northern Shield Insurance Brokers (name changed for confidentiality)
Location: Greater Toronto Area
Challenge: Declining renewal rates, losing policies to online competitors
Solution: Strategic direct mail campaign targeting renewal customers
Results: 40% increase in renewal rate, $1.2M in retained premium revenue
Background
Northern Shield Insurance Brokers is a mid-sized independent insurance brokerage serving the GTA with a focus on home and auto insurance. Like many traditional brokers, they were facing pressure from online insurance comparison sites and direct-to-consumer insurers.
The core problem: While they were reasonably good at acquiring new policies, their renewal rates had been declining steadily:
- 2021 renewal rate: 78%
- 2022 renewal rate: 73%
- 2023 renewal rate: 69%
With approximately 5,000 policies in their book, every percentage point of renewal rate represented roughly $50,000 in premium revenue. The decline from 78% to 69% represented nearly $450,000 in lost annual revenue.
What was happening:
- Customers received generic renewal notices 30 days before expiration
- No proactive outreach beyond that notice
- No communication about value or service
- Competitors were actively targeting their renewal customers with aggressive pricing
The wake-up call: In Q1 2024, they lost 180 policies at renewal—their worst quarter ever. Leadership realized they needed to fundamentally change their renewal approach.
The Strategy
Working with AIIM and a marketing consultant, Northern Shield developed a multi-touch direct mail campaign designed to:
- Reinforce value before customers started shopping around
- Personalize communication based on policy type and customer history
- Create multiple touchpoints rather than a single renewal notice
- Make renewal easy with clear calls to action
Campaign Design
Target audience: All customers with policies expiring in the next 90 days
Campaign structure: Three-touch sequence
Touch #1: 60 Days Before Expiration
- Format: Personalized letter in envelope
- Content: “Thank you for your loyalty” message from the principal broker, reviewing the customer’s coverage and claims history, highlighting service provided
- Call to action: “Call us to review your coverage” (not yet asking for renewal commitment)
Touch #2: 30 Days Before Expiration
- Format: Oversized postcard (6×9)
- Content: Formal renewal notice with current premium and coverage details, comparison showing what they’d lose by switching (local service, claims support, multi-policy discounts)
- Call to action: “Renew now with one phone call” with direct line to renewal specialist
Touch #3: 10 Days Before Expiration
- Format: Standard postcard (4×6)
- Content: Urgent reminder with countdown (“Only 10 days until your policy expires”), testimonial from satisfied customer about claims experience
- Call to action: “Call today to avoid a coverage gap”
Personalization Elements
Each piece was personalized using variable data printing:
- Customer name and policy details
- Years as a customer (“Thank you for 7 years with Northern Shield”)
- Specific coverage types (auto, home, or both)
- Claims history (“We’ve been there for you through 2 claims”)
- Assigned broker name and photo (creating personal connection)
Design Approach
Rather than standard insurance industry design (corporate, cold, lots of fine print), Northern Shield opted for:
- Warm, approachable design
- Professional photography of their actual office and team (not stock images)
- Clear, readable fonts (14pt minimum for key information)
- Highlighted call-to-action boxes
- Personalized signatures in blue ink (appeared handwritten)
Implementation
List Preparation
Timeline: 45 days before launch
- Cleaned customer database
- Segmented by renewal date
- Validated addresses using Canada Post tools
- Ran NCOA processing to catch customers who’d moved
Result: Address accuracy of 98.7% (vs. their previous 94%)
Print Production
Timeline: 30 days before launch
- Designed templates with variable fields
- Created data merge from their policy management system
- Proofed samples representing different data scenarios
- Produced and mailed in batches based on renewal dates
Print partner: AIIM (providing variable data printing, address validation, and direct mail services)
Execution
Campaign launched in April 2024, with customers entering the sequence 90 days before their individual policy expiration dates.
Volume:
- Month 1: 650 customers in renewal cycle
- Month 2: 720 customers
- Month 3: 580 customers
Cost Structure
Per-customer cost (all three touches):
- Touch #1 (letter): $1.85
- Touch #2 (oversize postcard): $1.20
- Touch #3 (standard postcard): $0.95
- Total per customer: $4.00
For 650 customers in first month:
- Campaign cost: $2,600
- Average policy premium: $1,400
- Average broker commission: $210 (15%)
Break-even: Campaign breaks even if it saves just 13 policies (13 × $210 = $2,730)
Results
Q2 2024 (First Full Quarter of Campaign)
Renewal rates:
- Control group (no campaign): 71% renewal rate (similar to 2023)
- Campaign group: 84% renewal rate
The math:
- 1,950 customers in renewal cycle
- Expected renewals at 71% rate: 1,385 customers
- Actual renewals at 84% rate: 1,638 customers
- Additional policies retained: 253
Revenue impact:
- Additional policies: 253
- Average premium: $1,400
- Additional premium revenue: $354,200
- Broker commission (15%): $53,130
Campaign cost:
- 1,950 customers × $4 per customer: $7,800
ROI: 581% (first quarter alone)
Qualitative Results
Beyond the numbers, Northern Shield observed:
Customer sentiment improved:
- Positive comments about feeling valued
- Customers mentioning “nice personal touch”
- Several customers said the mailings reminded them why they chose Northern Shield originally
Staff efficiency increased:
- Renewal conversations were easier (customers were pre-sold on staying)
- Fewer customers shopping around (less time spent re-quoting)
- More renewals processed per staff hour
Competitive losses decreased:
- Previously, 60% of non-renewals went to online competitors
- Post-campaign, only 35% went to competitors (others had life changes, sold homes, etc.)
What Made It Work
- Timing and Sequence
Instead of a single renewal notice 30 days out, the three-touch approach:
- Started relationship-building early (60 days)
- Reinforced value at the decision point (30 days)
- Created urgency at the deadline (10 days)
Critical insight: The 60-day “thank you” letter set the tone. By the time customers received the renewal notice, they were already thinking “these people value me.”
- Personalization
The variable data printing made each piece feel individually crafted:
- Specific years of loyalty (not “valued customer”)
- Reference to actual policies held
- Named broker relationship
- Relevant service history
Customer feedback: “It felt like they actually knew who I am, not just another policy number.”
- Design Quality
High-quality printing and paper stock signaled professionalism:
- 28 lb uncoated text for letters (substantial feel)
- 14 pt cover stock for postcards (sturdy, premium)
- Professional photography of real team members
- Clean, uncluttered design
Contrast: Their previous renewal notices were clearly mass-produced form letters. The new materials felt personal and important.
- Clear Value Communication
Each piece reinforced why customers should stay:
- Local service (“We’re here when you need us”)
- Claims support (“We’ve been there for you through X claims”)
- Multi-policy discounts (“Saving you $X annually”)
- Relationship history (“7 years of protecting your family”)
What they didn’t do: Compete solely on price. They acknowledged that someone might find cheaper insurance, but emphasized what customers would lose.
- Multiple Touchpoints
Research shows that multiple exposures to a message dramatically increase response:
- One touch: Baseline response
- Two touches: 50% higher response
- Three touches: 100% higher response
Northern Shield’s three-touch approach ensured customers were exposed to their message multiple times during the consideration window.
Lessons Learned
What Worked Well
Personalization paid off: The cost of variable data printing ($4 per customer vs. $2.50 for generic mail) was more than justified by results.
Starting early mattered: The 60-day “thank you” letter created goodwill before customers started shopping around. This was more effective than trying to win them back once they’d already decided to leave.
Physical mail cut through: While they also sent renewal emails, customers explicitly mentioned receiving and keeping the postcards. Physical mail had presence that email lacked.
What Could Be Improved
Digital integration: While the direct mail was successful on its own, Northern Shield realized they should have coordinated with email and digital advertising:
- Retargeting ads to mail recipients
- Email sequence timed with mail arrival
- Online renewal portal prominently featured
Tracking could be better: They used unique phone numbers for each mailing to track responses, but wished they’d also used PURLs (personalized URLs) to track online engagement.
Earlier expansion: In hindsight, they should have rolled this out to all customers in Q1 rather than piloting first. They lost several months of potential improved renewals.
Scaling the Program
Based on Q2 success, Northern Shield expanded the program:
Q3-Q4 2024:
- Applied to all renewals (100% of customers)
- Added a fourth touch for high-value customers ($3,000+ premium)
- Created version for new customers at first renewal (they renew at lower rates than long-term customers)
Results year-to-date (Q2-Q4 2024):
- Overall renewal rate: 82% (vs. 69% in 2023)
- Additional policies retained: ~650 annually
- Additional revenue retained: $910,000
- Campaign cost: $20,000
- ROI: 4,450%
Broader Implications
Northern Shield’s success provides lessons for other insurance brokers and similar businesses:
- Direct Mail Still Works for Relationship Businesses
Despite digital transformation, physical mail creates impact in relationship-based industries:
- Financial services
- Insurance
- Healthcare
- Professional services
Why: These are high-trust, high-consideration decisions. Physical materials signal investment and professionalism.
- Renewal Marketing Is Often Neglected
Many businesses focus on acquisition and neglect retention:
- Acquisition cost: $200-500 per customer
- Retention cost: $4-10 per customer
- ROI of retention is massively higher
Yet most marketing budgets heavily favor acquisition.
- Personalization Is Worth the Investment
Variable data printing costs more than generic mail, but the performance improvement typically justifies it:
- 30-50% higher response rates
- Better brand perception
- Higher customer lifetime value
- Multi-Touch Campaigns Outperform Single-Touch
One renewal notice isn’t enough:
- Customers are busy and distracted
- Multiple touches increase awareness
- Sequence allows for storytelling and value building
ROI Summary
First-year results (Q2-Q4 2024):
Investment:
- Campaign development: $3,500
- Print and mail: $20,000
- Staff time (coordination): $2,500
- Total: $26,000
Return:
- Additional premium retained: $910,000
- Broker commission (15%): $136,500
- ROI: 425%
Long-term value: The 650 additional customers retained have an average customer lifetime of 7 years:
- 650 customers × $210 annual commission × 7 years
- Lifetime value: $955,500
From a $26,000 investment.
Conclusion
Northern Shield Insurance Brokers reversed declining renewal rates and retained over $900,000 in annual premium revenue through a strategic, personalized direct mail campaign.
Key success factors:
- Early, relationship-focused communication
- Personalization using variable data printing
- Multiple touchpoints at strategic intervals
- High-quality design and production
- Clear value communication beyond price
The broader lesson: In an industry pressured by digital disruptors and price competition, traditional marketing channels like direct mail—when done strategically—can drive significant business results.
For other insurance brokers: This approach is replicable. The investment is modest ($4-10 per customer depending on campaign sophistication), and the return potential is substantial.
AIIM helped Northern Shield Insurance Brokers design, produce, and execute their renewal campaign. We specialize in personalized direct mail for insurance, financial services, and other relationship-based industries. Let’s discuss how we can help improve your renewal rates.