EDDM Marketing for home and auto insurance

11 replies
I am working on an EDDM postcard marketing campaign for my insurance agency. I am going to send out a total of 20,000 postcards spread out over 20 weeks. Does anyone have experience with this and advice?

It will be to sell home and auto insurance. What kind of response rate should I be able to expect? Is a 1% response rate something that's attainable, or will it be much lower?


I know the return on investment is all that matters, it's just I know that I make about $250/customer and can close 25% of this type of business, so the only other variable is the response rate!

Thanks for the thelp!

Jayson
#auto #eddm #home #insurance #marketing
  • Profile picture of the author Jayson L
    Anyone want to get the ball roling here! lol
    {{ DiscussionBoard.errors[9070557].message }}
  • Profile picture of the author Ron Lafuddy
    A little light on specifics, aren't you Jayson?

    "I know the return on investment is all that matters"

    Really? I can think of a couple of other things that just might play into it.

    "so the only other variable is the response rate!"

    Well, uh, I guess the offer doesn't matter then, eh?
    {{ DiscussionBoard.errors[9070673].message }}
  • Profile picture of the author Aaron Doud
    Do you have a copy of the card you will send?

    Some here may be able to guess at response rates after seeing it but beyond a guess there is nothing we can do. Testing is the only way to know.

    Think about it this way I can send 200 post cards out with 100 each of two different messages to the same people.

    One can say "Call this 900 number and for $5/min an angry women will yell at you"
    and the other could say
    "The first 100 people to bring this card into Doud Chevy will get a free car"

    While both will convert it is clear one will convert better. Even if I have no idea how many you sent or what the free car is it would be worth it for me to come down and get it. On the other hand very few people would pay $5/min to get yelled at by a woman. Sure there is a niche for that but you are unlikely to find many of them (or any) with a send of 100.

    There are many factors that go into response rate. And even if someone has done a similar card for an insurance agency their conversion numbers might not match yours.

    I'd ask this. Have you used a similar ad in a newspaper? If so how much response did you get? That can help you judge what to expect.
    {{ DiscussionBoard.errors[9070703].message }}
  • Profile picture of the author DABK
    That depends on who you mail to (how the list was created, i.e., which area you're sending to), on the offer you make, on the copy, on the timing.

    Originally Posted by Jayson L View Post

    What kind of response rate should I be able to expect? Is a 1% response rate something that's attainable, or will it be much lower?


    Jayson
    {{ DiscussionBoard.errors[9070797].message }}
  • Profile picture of the author misterme
    It wouldn't hurt to expect a lower response rate. Maybe one half what you're expecting. Maybe less than that.

    And you'd need to keep in mind that no one's anxiously awaiting your mailing, on the watch out for it and eager to jump on it. Maybe other things are pressing on their lives the day your piece comes in the mail. Or they put it aside intending to act on it, but neglect it and forget it. Or throw it away. So you may need to re-mail a few times.

    And the offer's important. If you're looking to find buyers right now, and your offer is about buying insurance, keep in mind every one else is doing the exact same thing. How many mailings do I get where it looks like the same form letter but which they added their name and carrier to?

    So what are you doing that's going to make someone call you?

    What are you selling? Final Expense insurance? My suggestion: copy what the big boys do.

    You may also want to speak to Reardon. He's a member here. He works in insurance.
    {{ DiscussionBoard.errors[9070905].message }}
    • Profile picture of the author ewenmack
      Jayson, another variable is lowering your cost of the mailing so much that
      whatever response you get you aren't losing money.

      Then if the offer is great, then you'll be putting your
      odds of making money in your favor.

      I show my clients how to create a mailing at zero cost.

      Best,
      Ewen
      {{ DiscussionBoard.errors[9070969].message }}
  • Profile picture of the author AmericanMuscleTA
    Let's see what your card looks like. What are you offering?

    I use EDDM all the time for real estate. We constantly farm the same area and offer free home seller guides. Sometimes we only get a tenth of a percent response. But, that tenth of a percent means thousands (tens of thousands) ROI.

    Also, it could take months to a year for us to finally pick up a client who inquired about our home seller guide. Follow up is key!

    We also use EDDM when we have a buyer looking in a certain area but no house on the market meets their criteria. We usually have over 1 percent response, and so far we have gotten a listing from each mailing. Makes our buyers happy we're doing more than just showing them houses and makes us happy because we get listings. Cha-ching!
    Signature

    David Hunter | Duke of Marketing | Real Estate Agent
    www.DukeOfMarketing.com

    {{ DiscussionBoard.errors[9072522].message }}
    • Profile picture of the author Biz Max
      Have you tested the piece yet? I would never invest that much in an unproven piece
      Signature
      Small Business Marketing & Branding Specialist
      http://BrandWhisperer.net
      {{ DiscussionBoard.errors[9072652].message }}
      • Profile picture of the author Vikuna2009+
        Do it with others, i.e. do an M3, which is what Bob Ross is teaching, he is a member here so you can look him up. Basically send out cards where you have 2 other businesses paying for the mailing by sharing the card with you =free advertising. That way you can mail forever, having others foot the bill, just go find 2 that are willing to advertise with you, like a co-op kind of thing,

        Eva
        {{ DiscussionBoard.errors[9073014].message }}
  • Profile picture of the author SiteSmarty
    1. As mentioned test everything before you invest. You can use AdWords to test. Easy and cheap.
    2. Use a plain white envelope with a handwritten address. It gets opened. They throw cards in the waste basket.
    3. Contest "Win One Free Year of Home and Auto Insurance."
    4. Point them to your opt-in box on a landing page. You can use LeadPages for this.
    5. Use MailChimp or similar to send your autoresponder series.
    6. Lead up to a timed insurance discount to convert.
    7. Continue educate your list about insurance. Stories. Funny once. Claim frauds. Then hit them somewhere down the road with another offer. You'll convert them all eventually unless they unsubscribe or change their email address.
    {{ DiscussionBoard.errors[9076590].message }}
  • Profile picture of the author cruisinman
    Get your card from GotPrint or similar. Pick your mail routes and have at it.

    Be sure card has call to actions and get er done.

    Better yet - have 3 ads on the back side - sell two of them and let someone else pick up part of your cost . . .


    Originally Posted by Jayson L View Post

    I am working on an EDDM postcard marketing campaign for my insurance agency. I am going to send out a total of 20,000 postcards spread out over 20 weeks. Does anyone have experience with this and advice?

    It will be to sell home and auto insurance. What kind of response rate should I be able to expect? Is a 1% response rate something that's attainable, or will it be much lower?


    I know the return on investment is all that matters, it's just I know that I make about $250/customer and can close 25% of this type of business, so the only other variable is the response rate!

    Thanks for the thelp!

    Jayson
    Signature

    Life - enjoy it . . .

    {{ DiscussionBoard.errors[9085726].message }}

Trending Topics