Direct Mail: Yes, it Works!

In a world dominated by digital marketing, here’s a tried-and-true method that has made a strong comeback in the advertising arena: direct mail.

You read that right. Good old-fashioned paper mail can support your independent agency in connecting with your audience. And that includes both personal and commercial lines customers and prospects.

So don’t say farewell to your postal carrier just yet. Delve into the world of direct mail. This 150-year-old marketing channel can be a real game-changer for your firm.

You’ve Got Mail … Real Mail!

Remember the thrill of receiving a personal letter in your mailbox? That nostalgic feeling holds the key to effective direct mail. In a cluttered digital landscape, direct mail stands out, demanding attention and fostering a genuine connection.

In fact, here are some statistics that showcase the potency of this tactic:

Open-rate royalty. While emails often find themselves lost in the inbox, direct mail boasts an impressive average open rate of as high as 90%, according to Compu-Mail.

Tangible impact. Receiving physical mail is becoming a novelty, yet a survey from the United States Postal Service shows that 57% of boomers, 45% of Gen X, 41% of millennials, and 37% of Gen Z would be disappointed if they stopped getting physical mail.

Memory lane. We can recall tangible and tactile experiences better than digital ones, and you can leverage that fact with direct mail. We can mentally process and remember physical mail more easily than digital advertising, according to a study from TrueImpact.

Finesse the Moment

Direct mail isn’t just about sealing an envelope. It requires a strategy that depends on effectively timing a key offer. Here are two scenarios where the timing of your mail can yield optimal results:

Seasonal sending. Want to make a bold statement and introduce your independent insurance agency to a wide audience? Opt for a mass mailing with a well-timed theme. A seasonal campaign or a special offer can keep it impactful and fresh. For instance, sending personalized insurance quotes during tax season is a value to potential clients. Matching up with real estate sales, spring and early summer are great times for home insurance-related communications. Or try a trip protection insurance reminder right before the busy holiday travel season. If your agency does more than property & casualty, highlight life insurance September through October.

Welcome to the neighborhood. A warm and informative welcome package for new homeowners establishes a personalized connection. It can position your agency as a neighbor and go-to resource for coverages in which you specialize.

Stage Your Mail

Don’t send all your direct mail in one shot. Consider waves of mailings—in advertising parlance, it’s called “flighting”—over a stretch of several months. Flighting not only is more effective, because you can adjust messaging as you go, but also easier on your staff. For example, you could send 200 pieces every other week over the span of 12 weeks. Test different imagery and calls to action.

Also included in a flighting strategy could be, say, three similar direct mail offers to the same customers or prospects over the course of six or 10 weeks.

Craft an Irresistible Direct Mail Piece

Designing a powerful mail piece is an art. Keep these tips in mind to create your agency’s compelling masterpiece:

Eye-catching imagery. A picture is worth a thousand words, and in the realm of direct mail, it can also be worth a thousand conversions. Choose images that resonate with your target audience—whether it’s a family enjoying a peaceful moment at home or a young professional confidently embarking on a new journey.

Going beyond stock art, smart agencies will proudly show their associates’ smiling faces helping customers on the phone, serving at a community event, or inviting the recipient to send her or him a text or email. Make that personal connection with good photography.

Clear and concise messaging. People have short attention spans, so your message should be brief and crystal clear. Use concise, benefit-driven language that highlights how your insurance services can make their lives or businesses more secure.

Action needed. Be sure to include a strong call to action to encourage engagement, including inviting the recipient to stop by your booth at the local farmer’s market or other event and to follow you on social media. Educate the community in your mail piece about the importance of all the relevant coverages you offer. Remember you are working to protect them. You could ask specific customers to call or email your agency to get a free umbrella insurance quote, for example.

Personalize. Skip the generic “Dear Sir/Madam” greetings. Personalize your mail with the recipient’s name. If possible, include details that make them feel seen and understood.

Track Your Direct Mail Triumphs

After sending out your direct mail pieces, it’s time to gauge their impact. Tracking the success of your campaign is crucial to refining your strategy and ensuring a healthy return on investment. Here are some tips:

Unique URLs and landing pages. Include a unique URL or landing page URL in your direct mail to track the number of visitors who come from your campaign. This allows you to measure the online engagement generated by your mail. The landing page can serve as an effective lead capture tool, so be sure to include a downloadable asset or contact form to obtain the visitor’s contact information.

QR codes. Incorporate QR codes that lead to specific web pages or offers. By monitoring QR code scans, you can gain insights into how many recipients took immediate action.

Coupons. If your direct mail includes an exclusive offer, assign a unique coupon code to each batch. This makes it easy to attribute conversions directly to your mail campaign. Perhaps you can offer a free insurance policy review for small business owners or families, whether those policies are with your agency now or not. Or you might offer gift cards—say, for local restaurants you insure—to those who inquire. Remember to follow your state’s anti-rebate laws and allowable dollar limit.

Postcards work, too! Try sending some oversized, colorful postcards to business owners or families. Recipients don’t have to open an envelope, and your branding and messaging can be showcased in some beautiful imagery for all to see. Postcards can be cheaper to print and mail than something that requires folding, collating, inserting and sealing into envelopes.

What About Response?

What sort of return on your investment can you expect from direct mail? Be realistic. This is the law of large numbers, so don’t just send one piece, one time, to 100 people and expect stellar results. You will learn over time which creative approaches work best. Stick with the program and be patient.

Messages to existing customers might generate the best response—perhaps 5%, depending on the call to action. Prospect direct mail could generate a 1% or 3% response.

Remember that even if not opened, any good-looking mail is a brand touchpoint for customers and prospects. And if it’s a postcard, at least one side of the card is guaranteed to be seen! Those experiences are very important in the long term in building your agency’s brand.

Finally, check your agency management system for direct mail functionality. If it’s available, at least use the system for automated mail to cross-sell customers.

In a world where digital fatigue is real and personal connections are appreciated more than ever, direct mail emerges as a beacon of marketing brilliance. Its tactile appeal combined with strategic timing, captivating design and measurable results can transform your agency’s advertising game.