CREATIVE DIRECT MAIL
by Alan L. Shulman, CPCU
Use your agency management system to create effective direct mail marketing packages.
It’s a virtual certainty that you’ve used your agency management system to generate some sort of mailing to business prospects. Did you realize that there are more methods at your disposal than generating computerized form letters or mailing boilerplate newsletters? You can distinguish your marketing efforts and improve your marketing results by using a little creativity and some specialized software.
FORMS SOFTWARE
Use these programs to generate surveys and other marketing forms of typeset quality directly from your PC and laser printer.
What makes electronic forms software so powerful is its ability to create the actual form, merge into it data from your prospect database, and print the result. This process is similar to merging names and addresses in a standard form letter, but creates a far more professional and effective marketing presentation.
LEARN FROM THE PROS
Have you ever opened your mail to find an Auto insurance solicitation from a direct marketer such as GEICO? They send a brochure and/or cover letter, together with: a simplified Auto app that’s to be completed and returned. Your agency can follow these highly successful direct mail examples.
The basic rule of direct mail is to tell your prospects the benefits that they’ll receive from doing business with your agency then tell them again — and again — and finally, tell them what you just told them!
THE CAMPAIGN
Select your market and prospects carefully. I recommend starting with Homeowners. Offer your agency’s best policy to the highest value homes in your area. These individuals, familiar with credit card offers and similar mailings, will be the most responsive to a forms-based marketing campaign. In addition, the higher premiums that these policies generate will create a nice commission per sale.
Prepare your database by entering names, addresses, phone numbers, and any other information you have about the homes that you’ll be soliciting. Caution: Be extremely careful that your information is accurate. The campaign can backfire if incorrect data is used in completing the personalized electronic form.
A national direct marketing specialist advises that direct mailings to individuals should be comprehensive, and not just a briefly worded letter. The package should include an eye-catching headline: name and address block; room for a campaign logo or slogan (e.g. ‘Request the Best’); comparison checklist; personalized letter from a specific agency representative; and space for the prospect to enter current policy limits.
Design the form so that it folds into thirds, with the prospect’s name and address positioned to show in a standard #10 window envelope. Be sure to include a #9 return envelope.
RESULTS
Don’t be surprised if your initial response rate is not greater than 2% to 5%. Experiment with your form, changing and rearranging the elements to obtain the best results. You’ll have the flexibility to create or modify an entire campaign in hours-not weeks. Your agency’s mailings will be noticed and your printing costs will be minimal (with no waste) since you’ll print only the forms you need.
MARKETING
As you gain experience, you can design direct mail marketing campaigns for other Personal Lines, including Auto and Umbrella. Certain Commercial Lines may also be marketed this way, including BOPs, Workers Compensation, and Bonds.
CONCLUSION
You’ll find that creative use of direct mail packages in your new business campaigns can greatly surpass the results from traditional form letters and phone calls, at a lower cost per lead.