Direct Mail For Insurance Agents: Is It An Effective Lead Source?

Direct mail is a classic lead generation tool that insurance agencies have been using for decades. But is it still worth your time and money with so many online lead sources you could be using instead?

To help you decide if direct mail is the right way to expand your lead generation strategy, let’s look at some of the main benefits and issues associated with direct mail for insurance agents, as well as how it compares to buying online leads.

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Direct Mail For Insurance Agents: A Quick Guide To Running Campaigns

Direct mail is promotional material sent through the postal service to people you think might be interested in insurance; the idea is to encourage them to get in touch. In principle it sounds simple, but in practice there are multiple steps involved in setting up a campaign: writing the copy and designing the mailer; compiling and segmenting a mailing list to target the right people; printing the mailer; and sending it out to potential prospects.

Luckily, there are companies that specialize in direct mail, like Lead Concepts, Need-A-Lead, The Lead Connection, and TargetLeads, that take care of the whole process for you, from design to dispatch. These full-service companies make it easy to run a campaign, but because their fees include labor costs, materials, and postage, it can be expensive to work with them. There are two main ways that direct mail companies structure their pricing: You either pay a fee for each mailer you send, or for each lead your campaign delivers.

Benefits & Considerations Of Using Direct Mail

Before you start a direct mail campaign, make sure you’re aware of some of the challenges you might face, as well as the benefits you’re likely to see.

Benefits

• Because your mailers are addressed to individuals, they give consumers a more personalized experience than online content like website copy and ads.
• Including your website address or social media information directly supports your online marketing efforts. You can use demographic data to target specific types of consumers that are likely to be a good fit for your insurance.
• Sending a physical piece of promotional material makes your message more memorable compared to the dozens of emails people receive every day.

Considerations

• Some people see mailers as spam, so it can be tough to engage people and keep your mailer from heading straight into the recycling bin.
• Mailers have limited space to share information.
• It’s harder to track and optimize the customer experience for direct mail leads than for leads generated through online methods.
• It can be expensive to run a direct mail campaign, and lead vendors often report insurance direct mail response rates of only 1-2%. A Data & Marketing Association study reported that the cost per response for direct mail prospects was higher than it was for email, paid search, or online display ads.

Direct Mail Leads Vs. Buying Online Leads: How Do They Compare?

Another popular lead generation option you’ve likely come across is buying “warm” online leads. Lead vendors collect information from prospects who submit an online form requesting an insurance quote and pass those prospects on to agents.

If you’re weighing direct mail against buying online leads, there are some key differences to note. With direct mail, you’re reaching out to consumers who may or may not be interested in insurance. In comparison, when you buy online leads, you’re working with prospects who are actively looking for insurance and made the first move to get in touch. This means that buying online leads give you a better chance of connecting with someone who’s ready to work with you.

It’s also important to note that direct mail and online lead generation can help you reach different types of consumers. Because you can use direct mail to connect with consumers offline, it means you can get in touch with people who aren’t comfortable researching insurance on the internet, such as some older people.

The Best Way to Get High Quality Leads

Direct mail can be a valuable addition to your lead generation strategy. However, to make sure you’re connecting with insurance prospects across multiple channels, I recommend using direct mail alongside digital sources, like buying online leads from EverQuote.

Partnering with EverQuote is a simple way to connect with high-quality leads who are actively shopping for insurance and have requested a quote. Every lead you receive from EverQuote fills out an extensive questionnaire, so you’ll get all the information you need to start the sales process. Plus, you’ll receive leads as soon as they submit the form, so you could be discussing insurance options with them just minutes after they requested a quote.

To start connecting with potential clients, click here to schedule a tour of EverQuote’s tools with one of our experts.