Agency Direct Mail

Agency Direct MailDirect mail still plays an important role for agencies that want to reach out and create more opportunities to provide service for their customers as well as to acquire new clients. Direct mail is particularly helpful for the following:

  • Obtaining inquiries from existing clients
  • Generating x-dates for new business (clients and prospects)
  • Gathering information to make a proposal or quote
  • Reducing the cost of sales calls
  • Maintaining contact with existing client

Advantages of Direct Mail

  • Selectivity – allows matching the audience to the offer or message
  • Intensive coverage – frequent contacts to reinforce the message or offer
  • Cost – a relatively inexpensive method to communicate and generate leads
  • Speed – Permits timely or seasonal contact for communicating about new products or services and for keeping in touch
  • Format – letters, postcards, business reply, inserts, flyers, etc.
  • Personal – easy, but important. Particularly with your own clients!

Direct Mail Expectations

  • When mailing to new business prospects, expect a 1% to 3% response rate if your message is well written, sent to qualified parties and if you are offering a competitive product/service.
  • A 3% to 10% response may be expected if a strong relationship has been developed with the targeted customers.
  • A follow-up phone call can increase your response rate 5 to 10 times. For instance, a normal 3% response could be increased to from 15% to 30%.

Keep in mind that requests for responses are more effective if they are direct and simple. Therefore, an offer to send more information in return for a response could be substantially more effective than asking recipients to complete a form or a survey. On the other hand, persons who take the time to return a form/survey are very solid leads.

Save Mailing Costs

Check with your post office about using

  • ZIP plus 4 codes
  • ZIP pre-sort
  • Third class bulk – they get read almost as much as first class!
  • Direct Mail Review

To raise the response average, make sure your mail pieces:

  • Create the right impression -- avoid the junk mail look
  • Personalize the letter -- everyone likes to see his or her own name
  • Make it interesting.
  • Make it different – size – shape – color
  • Touch the reader's emotions – tell a story
  • Make an offer that requires a timely response
  • Write using a friendly, conversational style
  • Focus on creating a benefit for the reader
  • Never use labels – always imprint
  • Ask for a response and make it easy
  • Offer something in return for a response
  • Always use a business reply card or envelope
  • Don't give too much product detail
  • Metered third class mail generates almost the same response as first class

It is also very important to monitor and evaluate the results of a mailing. What you learn can then be applied to future efforts. 

Direct Mail

Bulk prospectingcan be done through direct mail often called wave mail today. Direct mail will get your name (or perhaps your company's name) in front of many people and will hopefully isolate those who are ready to talk about life insurance now.
It is cost efficient and time efficient because you can mail many letters at favorable rates and get your name and message in front of people who otherwise might not be there to answer your phone call. Your company may offer a direct mail program to produce your direct mail campaign, Your job in this case would probably be to supply the list of people you want to approach, select the particular letter you wish to send, and choose a premium offer (atlas, book, etc.) if this is to be your approach.

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