Government and business have become unusual bedfellows in a unique and exciting direct-mail marketing concept. A joint project involving the automotive industry in Montana could serve as a model for a whole new direction in targeted direct mail-and have great relevance for selling nearly every insurance product in the marketplace.
Automotive News reported that the Montana Chevrolet Dealers Association won a bid to mail 680,000 renewal notices for Montana's motor vehicle registrations during the next year. The bid, awarded to the group's ad agency, Sage Advertising, is believed to be a marketing first. Car dealers feel that this will remove the junk-mail stigma from their direct-mail advertising.
Each renewal notice will include an advertising message from the recipient's local Chevrolet dealer. (Note the 'local' aspect, targeting the marketing message toward specific territories.) The contract, for one year with a two-year option, calls for an initial mailing of 94,000 renewals with advertisements. In line with the mutual-benefit concept, the state will run an advance ad campaign to publicize the agreement, so that vehicle owners don't mistake their renewal for mere advertising. The mailing envelope will be clearly identified: 'State of Montana Vehicle Registration License Renewal Notice Inside.'
Local dealers can choose from six advertising messages. One includes a $500 discount coupon redeemable only at the dealership indicated in the notice. Other messages are tailored to current inventory concerns or TV advertising campaigns. Each message will include the name and address of the local dealer and, taking advantage of the unique nature of the mailing, will suggest that now is a good time to purchase a new vehicle before spending money to renew registration on the old one.
Advance focus-group studies by Sage Advertising show that Montana consumers like the idea that the dealer ads will be saving the state more than $200,000 in mailing expenditures. That's going beyond advertising-it's terrific (and free!) public relations.
No one has yet been willing to detail the costs for this campaign, since negotiations with mailing companies are still underway. However, the dealers are shifting about a third of their general television advertising budget to cover this promotion.
The state of Iowa recently began selling advertising space in 15 state documents, from the Department of Revenue and Finance's finance newsletters to driver's license manuals. The Iowa Department of Economic Development polled the other 49 states, and none of the 38 responding states offered any such program. (After receiving such a survey, they're probably considering it, though!)
The Insurance Angle
Although this news story concerns selling cars, it could open a multitude of niche-mail marketing opportunities for the insurance industry.
From a company perspective, vehicle registrations generally mark the anniversary of the vehicle purchase, which coincides with the x- date of the Auto insurance policy. Since most states mail renewals at least 60 days early, this is the perfect time to suggest that consumers get a rate comparison from their local agent. Driver's license renewals are often based on birth date-could anything be more appropriate than advertising for Life, Health, and Retirement insurance?
Similarly, Homeowner and Mortgage insurance advertising are ideal for enclosure with annual property tax statements. With today's turbulence in real estate, any number of value-added benefits could be used to entice replies from prospects.
Companies could develop cooperative programs with participating agencies in individual states to develop and pay for such programs. Both would reap untold benefits in public relations.
Depending on logistics, addressees could be encouraged to respond directly to the local agency, as with the Montana Chevrolet Dealers. As an alternative, the company could collect the leads and direct them to the proper agency for follow-up. Either way, individual agencies, regardless of their size, can get into the act. Such a campaign is bound to generate a solid number of good, well-timed leads.
Just think of all the local city, county, state, and regional governmental agencies with which you can share a mutually beneficial relationship. On the Commercial Lines side stand all of the agencies that regulate business- local taxation offices, business license bureaus, etc. Advertising targeted to property owners might piggyback on property tax statements, water bills, and other utility bills, which may also be perfect mediums for Personal coverage advertisements. The publicity can be even more effective on a local basis.
The agency concerned with coupling its ad with a bill or invoice should investigate the various informational mailings those departments may put out. In many states, people receive water-conservation bulletins, environmental advice, or safety tips from various utilities. Such mailings are extremely positive in nature. Piggybacking on them demonstrates two virtues: a desire to save tax money and a concern for the individual's well-being.
Here's the gist of this message: There's a brand new vehicle on the direct-mail horizon! Investigate the possibilities-now! Because of the Montana contract options, Ford, Chrysler, Toyota, and every other automotive manufacturer and dealer have been preempted from using motor vehicle registration renewals for the next three years. Since word is out, you don't have much time to meditate on whether you want to try this new route or not.
A special note to agency owners: This program was put together by a coalition of individual dealers; it wasn't a brainstorm from Chevrolet Motor Division's Marketing Department. So don't wait for the company to act!