Insurance Direct Mail Marketing: A Comprehensive Guide

From National Direct Mail Leader, American Litho

Return on direct mail can be between

2.7% to 4.4%

Insurance Direct Mail Marketing Best Practices and Tips

Insurance direct mail marketing is a cost-effective form of advertising that delivers remunerative returns and response rates on investments while generating leads and connecting insurance providers with their intended audience.

In fact, studies show that the average return on direct mail can be between 2.7-4.4% compared with a return of 0.6% on email. Results-driven insurance companies effectively employ thoughtfully designed mailers to improve their reach and allow customers the ability to access information about their coverage in an easy and convenient way—all while driving sales.

Below, we discuss how insurance direct mail marketing can help you increase your brand recognition, expand your customer base and attract new customers, as well as how you can leverage these benefits to drive sales and increase profits. But first, let’s go over the direct mail best practices for the insurance industry.

Return on direct mail can be between

2.7% to 4.4%

Insurance Direct Mail Marketing Best Practices and Tips

Insurance direct mail marketing is a cost-effective form of advertising that delivers remunerative returns and response rates on investments while generating leads and connecting insurance providers with their intended audience.

In fact, studies show that the average return on direct mail can be between 2.7-4.4% compared with a return of 0.6% on email. Results-driven insurance companies effectively employ thoughtfully designed mailers to improve their reach and allow customers the ability to access information about their coverage in an easy and convenient way—all while driving sales.

Below, we discuss how insurance direct mail marketing can help you increase your brand recognition, expand your customer base and attract new customers, as well as how you can leverage these benefits to drive sales and increase profits. But first, let’s go over the direct mail best practices for the insurance industry.

Integrate your insurance direct mail marketing with other marketing techniques with Amerilytics

Make the most of your direct mails potential by integrating insurance direct mail marketing campaigns with online, in-store, and experiential marketing approaches. Self-dubbed“priming the mailbox”, effectively utilizes this technique through our proprietary data analytics suite, Amerilytics to improve efficiency, creative appeal, maximize personalization, and discover opportunities to further stimulate sales.

Utilize data to understand and reach an expanded audience

American Litho offers advanced data-driven techniques to thoroughly analyze your current customers to develop a deeper understanding and picture of future potential customers allowing you to reach hundreds and thousands of previously untapped leads while minimizing your rate of investment.

Understand the different types of mailers and when to use each one

Insurance agencies currently use postcards, brochures, and flyers to deliver efficient and effective messages and branding. As each mailer has a multitude of capabilities and benefits, it is important to determine which piece is most in-line with the target of your insurance direct mail marketing campaign.

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Insurance Direct Mail Lists & Segmentation

A well-targeted direct mail marketing campaign is an effective way to reach your audience and increase your insurance direct mail response rates. But, in order to ensure that the correct audience will receive your direct mail campaign it is important to employ segmentation techniques, batch testing (particularly before scaling campaigns), and targeted and personalized direct mail.

Segmentation

Segmentation techniques allow you to create a highly-relevant audience by identifying certain characteristics or behaviors of your target market. For example, if you are looking to sell life insurance, you could segment based on age groups (younger vs. older) or even income brackets (higher vs lower), thus allowing you to better understand the needs of each group and how they might respond differently from one another.

Batch Testing

Batch testing allows you to test different variations of your direct mail piece before scaling up for a full production run. This can help determine which version performs best in terms of response rate and conversion rate so that only those versions are sent out at scale rather than all versions being sent out with no real idea as to which one works best for each campaign type.

Targeting and Personalized Direct Mail

Take segmentation one step further by employing targeting techniques to personalize insurance direct mail marketing campaigns to increase the likelihood of achieving your desired outcome. In fact, response rates can be increased up to 135% just by including your customer's name on the mailer.

When used in conjunction with batch testing and segmentation, targeting and personalizing your direct mail campaign will allow you to send targeted campaigns that are grounded in tailored data specific to your desired demographic for campaign success. Reach out today to discuss American Litho’s predictive modeling list service to see how we can help you unearth prospective audiences for your brand.

Segmentation

Segmentation techniques allow you to create a highly-relevant audience by identifying certain characteristics or behaviors of your target market. For example, if you are looking to sell life insurance, you could segment based on age groups (younger vs. older) or even income brackets (higher vs lower), thus allowing you to better understand the needs of each group and how they might respond differently from one another.

Batch Testing

Batch testing allows you to test different variations of your direct mail piece before scaling up for a full production run. This can help determine which version performs best in terms of response rate and conversion rate so that only those versions are sent out at scale rather than all versions being sent out with no real idea as to which one works best for each campaign type.

Targeting and Personalized Direct Mail

Take segmentation one step further by employing targeting techniques to personalize insurance direct mail marketing campaigns to increase the likelihood of achieving your desired outcome. In fact, response rates can be increased up to 135% just by including your customer's name on the mailer.

When used in conjunction with batch testing and segmentation, targeting and personalizing your direct mail campaign will allow you to send targeted campaigns that are grounded in tailored data specific to your desired demographic for campaign success. Reach out today to discuss American Litho’s predictive modeling list service to see how we can help you unearth prospective audiences for your brand.

Property Insurance Direct Mail Marketing

What is a good direct mail response rate? Direct Mail response rates vary from campaign to campaign and depend largely on three main factors.

1Creative

(design, print quality, paper)

2Offer

(perceived value)

3Timing

(when is it delivered)
When these factors are covered comprehensively response rates for (national) direct mail response rates average between 2.7% and 4.4%.

It is extremely important to note that 90% of direct mail gets “opened”, meaning it is touched by a consumer. Direct mail opens and responses are ten to thirty times higher than response rate averages from email marketing campaigns. Successful marketers are deploying both direct mail and digital tactics to reach consumers consistently and across all channels

So why does direct mail remain a tried-and-true advertising strategy for any business? Direct mail is the opportunity to have a one-on-one conversation with your customer. It instantly creates an intimate conversion with a lasting impression. Direct mail can be used to test and explore audiences. It is also a major driver to your digital channels with personalized URLs, specialized landing pages and QR codes that evoke an action.

Improving Your Direct Mail Marketing Response Rates​

When considering strategies to improve insurance direct mail response rates it is important to understand the three primary factors that affect response rates: the offer, or perceived value of the deal, the design of the mailer, and the timing of the mailer. When these three factors work together customers intuitively respond, conversely, when they are disjointed you may find that you’re receiving fewer and fewer response rates. Consider implementing any of the following to improve your insurance direct mail response rates.

Make an offer your customers can’t refuse

Consider what you can add to create an offer that allows your customer to perceive maximum value. Incite urgency, add excitement, and infuse your mailer with energy to exemplify the value of your offer.

Determine if your mailer design is constructive to your company

Consider what you can add to create an offer that allows your customer to perceive maximum value. Incite urgency, add excitement, and infuse your mailer with energy to exemplify the value of your offer.

Make an offer your customers can’t refuse

Consider what you can add to create an offer that allows your customer to perceive maximum value. Incite urgency, add excitement, and infuse your mailer with energy to exemplify the value of your offer.

Determine if your mailer design is constructive to your company

Consider what you can add to create an offer that allows your customer to perceive maximum value. Incite urgency, add excitement, and infuse your mailer with energy to exemplify the value of your offer.

Know your target audience

Sure, your mailer may be visually appealing but if it’s not getting into the right hands of prospective consumers then you simply won’t see your desired returns. Flesh out your understanding of your target audience with advanced data modeling techniques to acquire relevant new customers while engaging the customers you already have.

Outsource to the professionals

Improving your insurance direct mail response rate can be a daunting task so choose a direct mail partner, like American Litho, that can supply you with the tools and tricks needed to see results.

Know your target audience

Sure, your mailer may be visually appealing but if it’s not getting into the right hands of prospective consumers then you simply won’t see your desired returns. Flesh out your understanding of your target audience with advanced data modeling techniques to acquire relevant new customers while engaging the customers you already have.

Outsource to the professionals

Improving your insurance direct mail response rate can be a daunting task so choose a direct mail partner, like American Litho, that can supply you with the tools and tricks needed to see results.

Contact American Litho to Improve Direct Mail Response Rates

We have been leaders in the direct mail marketing industry since our founding in 1994 and know how to connect with customers to deliver improved direct mail response rates. Connect with us to discuss strategies and tools we can help you implement to increase your customer base and response rate.
Let's Talk!

Life Insurance Direct Mail Marketing

Life insurance direct mail marketing is a superior choice for lead generation as it allows you to segment and target your audience by location and demographic so your life insurance mailer is received into the hands of customers who have both already expressed interest in your services and are new to the world of your offerings.

When creating a life insurance direct mail marketing campaign, consider American Litho’s proprietary data analytics suite, Amerilytics. Tap into Amerilytic’s predictive modeling to seamlessly get in touch with millions of potential customers who have a high propensity to engage with your brand. Allowing you to drive leads while connecting with new, highly accessible communities.

Life Insurance Direct Mail Marketing

Life insurance direct mail marketing is a superior choice for lead generation as it allows you to segment and target your audience by location and demographic so your life insurance mailer is received into the hands of customers who have both already expressed interest in your services and are new to the world of your offerings.

When creating a life insurance direct mail marketing campaign, consider American Litho’s proprietary data analytics suite, Amerilytics. Tap into Amerilytic’s predictive modeling to seamlessly get in touch with millions of potential customers who have a high propensity to engage with your brand. Allowing you to drive leads while connecting with new, highly accessible communities.

Property Insurance Direct Mail Marketing

Home insurance direct mail marketing is an effective and useful strategy for home insurance companies to generate leads. Primarily, home insurance direct mail marketing is effective in generating leads thanks to the following three reasons:

1Direct mail is capable of targeting specific demographics and programs

With American Litho’s proprietary data analytics suite, Amerilytics, you can trigger programs to respond to the actions of new or possible customers, accurately predict new prospects with a high likelihood of purchasing your home insurance, and targe geographic locations based off off relevant demographics. Informed by data, you can optimize your current campaign and proactively plan your next to generate leads and increase returns.

2Home insurance direct mail marketing is affordable

The average rate of return on every $1.27 spent on home insurance direct mail marketing is $4.09. The impressive return allows for greater campaign scope thus increasing your lead generation.

3Home insurance direct mail marketing is easily personalizable

Home insurance direct mail marketing is a highly personalized method of lead generation that an online campaign can't match. This personalization makes your message more likely to resonate with its intended audience and make them want to learn more about what you have to offer.

When combined with thoughtful design and useful strategies, such as streamlining your call-to-action, creating insightful and exciting copy, and maintaining outreach with previous mailer recipients, home insurance direct mail marketing is a constructive method for lead generation.

Tap into

73%

Tap into of Americans who prefer to be contacted by mail

Direct Mail Marketing for Insurance Agents

Direct mail marketing for insurance agents is particularly effective at locally targeting prospective clients. Among the benefits of direct mail marketing for insurance agents, this strategy ensures that your message will be seen by the right people, and it also allows you to save money on advertising costs by focusing on a more specific and local audience.

Likewise, larger broker and seller companies can highlight local insurance agents through direct mail marketing to tap into localized branding and develop community recognition.

When combined with a data-informed strategy, personalized messages, and effective testing, direct mail marketing for insurance agents effectively generates leads while producing attractive returns.

Tap into the 73% of Americans that prefer to be contacted by mail – reach out to American Litho today.

Tap into

73%

Tap into of Americans who prefer to be contacted by mail

Direct Mail Marketing for Insurance Agents

Direct mail marketing for insurance agents is particularly effective at locally targeting prospective clients. Among the benefits of direct mail marketing for insurance agents, this strategy ensures that your message will be seen by the right people, and it also allows you to save money on advertising costs by focusing on a more specific and local audience.

Likewise, larger broker and seller companies can highlight local insurance agents through direct mail marketing to tap into localized branding and develop community recognition.

When combined with a data-informed strategy, personalized messages, and effective testing, direct mail marketing for insurance agents effectively generates leads while producing attractive returns.

Tap into the 73% of Americans that prefer to be contacted by mail – reach out to American Litho today.

American Litho a superior choice for insurance company direct mail marketing

American Litho’s central location allows for cost-effective printing and mailing options that will catch the attention of your demographic. Plus, with our high-speed, industry-leading printing, and data analytics you can be sure that your high-quality mailers are received into the hands of the demographics that matter most. Streamline, grow, and improve your direct mail marketing campaigns today – reach out to American Litho to evaluate your direct mail campaign today.

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