Why Your Last Direct Mail Campaign Flopped

So your last direct mail campaign didn’t produce the results you were hoping for. Turns out you’re not the only one.

The Direct Marketing Association recently reported that response rates for lead generation direct mail are at a low 1.43% -- down from 2.09% in 2004 and 2.48% in 2003. These poor rates are coming in at a time when the financial services industry is dumping a record $2.6 billion into direct mail.

According to an AdAge report, these direct mail woes stem from consumers turned off by mailboxes overflowing with financial solicitations. Is your direct mail piece getting lost in the shuffle?

What you should consider before your next direct mail campaign

One study doesn’t mean insurance agents should abandon direct mail entirely, but it does mean now’s a good time to evaluate its cost effectiveness.

Ask yourself: How much did I spend on my last direct mail campaign? (this includes design, printing, postage, admin costs and cost of mailing list if you purchased one.) Now ask, how many leads did it generate, and even more importantly, how much business did I write as a direct result of this campaign?
Do the profits outweigh the costs enough to justify the effort? Or are you just barely breaking even?
If your campaign results are weak, it could be time to consider a new marketing strategy that picks up direct mail’s slack.

Can Internet leads get better results for you?

More agents are turning away from costly direct mail campaigns towards the internet for lead generation.

Consider the difference:

1. Interest. The best prospects are ones that need your services and are interested at the time you make your targeted offer.
   
   Direct mail: The prospect receives your unsolicited mailer amongst all the credit card, banking and loan offers.
   
   Internet: The lead is actively searching the internet for insurance using popular search engines. Plus, by choosing a lead company that allows you to create your own ideal lead profile, customized by zip code, number of dependents etc., you only get the leads that meet your sales criteria.
   
   
2. Speed of contact. Every minute that passes your prospect loses interest in your offer, and gives your competition room to snatch the sale from under your nose.
   
   Direct mail: You have to wait on prospects to take the initiative to either call you or fill out a business reply.
   
   Internet: Internet leads are delivered to your inbox seconds after the prospect requests a quote. You can contact them before they even close their browser. If you have a quote engine, you can generate a proposal in 60 seconds, email it to your lead and be reviewing plans together on the very first phone call.
   
   
3. Follow up.
   
   Direct mail: You have to manually enter a direct mail lead into your database or filing system. This can waste hours of precious admin time, plus quickly locating prospect information is difficult.
   
   Internet: Some lead companies offer complimentary lead management systems that automatically import your leads’ information, saving you valuable admin time. You’re able to prioritize for follow up, sort and track all your leads from one secure online location that is accessible from any computer.
   
   
4. Return on investment. This is really what it’s all about.
   
   Direct mail: More important than your response rate, what was the ROI of your last direct mail campaign?
   
   Internet: How does 500% ROI sound? Because internet leads free you from generation grunt work, you can spend all your time selling. And because leads are affordable, often for just $5 - $6 apiece, they open up the door for greater return on investment. Making just one sale off an internet lead can cover the entire month’s investment.
   
   
5. Guaranteed generation.
   
   Direct mail: A lot of variables affect the response rate you get from direct mail, including how interested the people on your list are in what you’re selling, down to the design, copy and call to action. Missing the mark on any one of these can stunt your response rate, leaving you with an unreliable source of leads.
   
   Internet: Purchasing internet leads puts you in control of a steady lead supply. When other sources run dry, you can count on internet leads being delivered to your inbox daily. Some companies also allow you to set adjustable daily and monthly limits, so you’re not managing your lead budget in the dark.
   
   Don’t cross your fingers and hope your next direct mail campaign will produce the results you need to build your book. Internet leads provide you with a steady stream of business while taking the guesswork and effort out of lead generation.

Interested in internet leads? Learn more about InsuranceProspect leads from Norvax.