Insurance companies know risk.
But do you know the best way to attract and convert prospective policyholders?
If you follow a few important guidelines, your best, most effective, and most profitable channel could be direct marketing.
Insurance companies know risk.
But do you know the best way to attract and convert prospective policyholders?
If you follow a few important guidelines, your best, most effective, and most profitable channel could be direct marketing.
It's been a hell of a couple years.
Supply chain issues... political nonsense... inflation worries... not to mention a never-ending pandemic.
It's no wonder a lot of companies are tightening their belts and bringing some marketing work in-house. After all, it’s cost-effective, it gives you total control, and you know exactly how and where your money is being spent.
But…
In our continuing analysis of direct mail control packages, we attempt to zero in on exactly what makes a control — a control.
What are readers attracted to?
What interests them about it?
Why do they read it?
Why do they respond to it?
Some controls are so good that they’ve bested all challengers to date. And they remain the undisputed control — sometimes for years. These are known in the industry as “Grand Controls.” You may have received some in your own mailbox. They show up every so often and you know you’ve seen them before. Chances are, you’ll keep seeing them until you respond — or a new control package beats it.
But the baffling thing is...
Your control.
The unique marketing juggernaut that delivers consistent results, more sales, and higher revenue time and time again.
In other words, it's one of the highest-performing campaigns you've produced to date.
That's precisely why...
According to MarketingSherpa, 76% of consumers say they trust promotions they receive in the mail.
Another recent survey (State of Direct Mail Consumer Insights from LOB) states that 50% of consumers aged 34-54 who receive direct mail from a brand think it feels more important than receiving an email.
And SmallBizTrends.com reports that 70% of consumers say direct mail is more personal than online interactions.
So what’s going on here?
Why’s direct getting all the love lately?
The short answer…
A recent report (the State of Direct Mail Consumer Insights, produced by Lob and Comperemedia) shows why direct mail remains a powerful and important part of any successful marketing plan.
Paper costs are soaring… printing costs more… postage just went up… but insurance marketers continue to rely on direct mail for the results they need. In fact, consumers saw a slew of direct mail in Q4 2022. Here's one reason why...
In any economic downturn, marketers can quickly find themselves in unfamiliar territory. Sure, no two recessions are alike. But marketers who have been around the block once or twice (or three times) may notice patterns in consumers’ purchasing behavior and/or in marketers’ strategies. And those strategies can either boost or bust their overall performance.
Often what you’ll see in a recession is consumers will tighten their belts and reduce their spending. As a result, sales drop and companies start cutting costs and reducing prices. Budget cuts across the board follow.
But hold on… wholesale reductions like these can be a mistake.
So, How Do You Market In Times Like These?
With hundreds and hundreds of decisions to make every hour, how do humans ever get through the day?
Well, it comes down to System 1 and System 2 thinking.
For example, if a speeding taxi were racing toward you as you stepped off the curb, you’d jump back. No thinking involved.
Or maybe it’s something more subtle, like noticing the facial cues of an angry boss. Either way, in these types of situations, your thinking is automatic. That's called System 1 – and it’s a far cry from the more deliberate kind of thinking you do when you’re asked to work through an algebra problem, assemble some new furniture, or do your taxes — the long-form. That’s System 2 thinking.
The idea that we use two systems to process information was detailed by Daniel Kahneman in his best-selling book, Thinking Fast and Slow.
And this concept is directly related to marketing and how consumers arrive at a purchase/no-purchase decision?
It’s been quite a ride.
COVID-19… The Great resignation… Hybrid work styles…
For marketers, this has been the most tumultuous 2+ years in recent memory.
But if you’re reading this, congratulations, you made it this far...
So enough already. Enough looking back, enough lamenting about what was.
Let’s take a look ahead.
What’s next?
What’s out on the horizon?
What could impact your business in the next two years?
Well, how about Artificial Intelligence (AI).