Direct mail continues to provide the highest ROI (return on investment) of all marketing channels according to marketers1.
While digital marketing strategies have gained budget share, direct mail offers unique benefits and opportunities for insurance companies to engage with their target audience effectively.
One of the reasons why direct mail works well for the insurance sector is that about 81%4 of insurance companies agree that direct mail shows the best ROI among all the channels they utilize today.
There’s a growing trend to incorporate more direct mail in marketing budgets, and companies should take note. Given the ROI impact, 58% of marketers have more marketing budget allocated to direct mail compared to 20222.
This is the first in a three-part series focused on effectively integrating direct mail into the marketing tactics of the insurance sector.
Here we explore WHEN insurance companies should be leveraging direct mail marketing to maximize their ROI and enhance customer engagement.
1. Leading up to important milestones
Timing is everything! Direct mail can be impactful when reaching out to customers approaching important milestones, like marking policy anniversaries, sending renewal reminders, expressing gratitude for business, and nurturing already–established relationships. Insurance quote requests that are responded to by using a combination of digital and print mail packages lead to a higher ROI than ones responded to with only an email, according to Terminal Van Gogh’s Ben Passmore.
91% of customers prefer purchasing services when offers are specific and relevant to them6. You can now trigger these messages from your data, integrate them with other marketing channels and make your messages automated yet personalized, and offering a seamless and personalized experience for customers.
2. When selling directly to customers
Direct mail is frequently used in the insurance sales process, and information exchanged during the process can allow for direct mail to be personalized for follow-up communications. By targeting the right audience at the appropriate stage, insurance companies can leverage direct mail effectively.
New customer acquisition is more successful when using an omnichannel marketing strategy, and direct mail performs well when used in conjunction with other methods. Around 75% of business mail stays in the home for over four weeks and is revisited an average of 5 times5. This means that a direct mail piece will remain in the hands of a prospective customer for weeks with a high probability of being acted upon!
3. When branch marketing is supported by a Head Office program
Insurance companies that provide a head office–supported program make it possible for brokers to utilize direct mail successfully. Individual brokers may find it challenging to become direct mail experts, secure competitive pricing, and execute effective and recurring campaigns. A supported program ensures consistent branding, supplies expertise to the entire broker network, and helps brokers become experts in utilizing direct mail marketing, with higher continuity and recurring participation.
4. When Transpromo messages tag along with Statements and Policies
TransPromo, short for Transpromotional, involves the integration of personalized marketing content into transactional documents such as bank statements, invoices, and receipts 7. TransPromo messages that are printed and mailed with statements and policies offer insurance companies a valuable opportunity to create bonus points of communication with their customers through a single document that caters to each customer’s individual needs. This is not new, but it is something that can be even more effective now that these messages can be triggered, targeted, and personalized. The cost is relatively low, given that the mail piece is already being printed and mailed. Often the extra messages can be fit on existing paper in the document or simply added as an extra sheet, at a fraction of the cost of a stand-alone direct mail package.
Modifying these important, mission-critical transactional documents and adding messages has become easier with new PDF-modifying technology. Additionally, the latest inkjet printing technology can make these personalized messages in brilliant colors, contrary to historic black-only statement printing.
This approach allows for personalized expressions of gratitude, cross-selling or upselling promotions that amplify the brand. Incorporating this is a cost-effective and efficient solution that adds value to both transactional mail and marketing initiatives.
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Why Work with AIIM?
At AIIM, we are committed to providing exceptional direct mail services tailored to the unique needs of insurance companies. By choosing AIIM as your partner, you benefit from several advantages:
Carbon-neutral direct mail options: https://aiim.com/sustainability/
Expert Partners with Canada Post, ensuring reliable advice and effective mail delivery
Cutting-edge technology and automation
Data Security – SOC 2 Type 2 certified
By leveraging direct mail effectively and partnering with an industry-leading provider like AIIM, insurance companies can unlock the full potential of this powerful marketing channel. Contact AIIM today to discover how we can elevate your direct mail marketing efforts and help your insurance business thrive in an increasingly competitive landscape!
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Unlock Your Business’s Potential with Our Support!
Connect with us to learn more about the unique capabilities of direct mail.
We would love to help you!
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References:
1. https://www.lob.com/use-cases/insurance
2. https://go.lob.com/Lob-2023-State-of-Direct-Mail-Insurance-Edition.html?utm_campaign=2023-sodm&utm_source=insurance-page&utm_medium=website
3. https://go.lob.com/Lob-2023-State-of-Direct-Mail-Insurance-Edition.html?utm_campaign=2023-sodm&utm_source=insurance-page&utm_medium=website
4. https://www.lob.com/use-cases/insurance
5. https://www.marketreach.co.uk/mail-marketing-ideas-research-insights
6. https://www.lob.com/ebooks/the-marketers-guide-to-direct-mail-personalization
7. https://www.docpath.com/art-transpromo-advertising-what-is-it-and-what-are-its-advantages/