EF Fall 07.indd - National Association of Professional Allstate ...
EF Fall 07.indd - National Association of Professional Allstate ... EF Fall 07.indd - National Association of Professional Allstate ...
marketingFinding the RightMEDIAf o r t h e B e s t R e s p o n s e :A Direct Marketing Overview for Insurance AgentsBY TINA MORGANIIt’s something every startup agencyowner learns very quickly – navigatingthe twists and turns of marketing youragency is tricky. Even seasoned veteranscan get confused about the pros and consof direct marketing methods and howthey stack up against each other.In this article, we’ll explore the powerof direct marketing and blast throughsome of the myths surrounding differentmarketing channels to help you select theright media to win more customers andincrease your BOB (book of business.)Where does direct marketingget its strength?Direct marketing is targeted, trackable,measurable, cost effective and hasincredible staying power. As a marketingtechnique, it is considered an indispensablepart of successful media campaignsand a commanding stand-alone strategy.What are the defining characteristicsof direct marketing?• Precise targeting and market segmentation.Your message gets in front ofthose consumers most likely to respondto your offer.• Research and testing. There aremany reliable and nationally recognizedresearch services available to assist youin obtaining census, demographic andpsychographic data before you start yourChannelDirect MailYellow PagesCable TVRadioNewspapersAdvantagesTargeted, trackable results,space to add benefits details,many options for visual appeal,consumers can spendtime with ads, shared mail isaffordable.Widespread consumerawareness, used as a referencetool, consumers canspend time with ads.Visual appeal, wide reach,targeted, affluent audience.Targeted, affordable production,large and portablemedium, short lead time,impactful.Visual appeal, space forbenefit details, trackable,short lead time, consumerscan spend time with ads.DisadvantagesConsumer acceptance canbe spotty; but when they readdirect mail, they tend to readfrom mailers they know andtrust, mailing costs for individualpieces are increasingdue to rising postal rates.No flexibility for seasonalvariations or “specials,” adclutter, out of date publication,too many books confuseconsumers, costly.Small audience for individualchannels, high TV commercialproduction costs (low cost,low quality commercials arenot effective), difficult forconsumers to respond, subjectto DVR time-shifting and adskipping.Low reach due to fragmentedaudience, difficult for consumersto respond, subject tostation surfing to skip ads.Steadily decreasing penetration,ad clutter, no separation,people browse more than theyread, can be costly.20 — Exclusivefocus Fall 2007
campaign to ensure you are hitting thoseconsumers who fit your profile.• Quick consumer response time.You can typically expect a responsequickly (minutes, hours and days) dependingon the media selected. You canfacilitate this process by creating a senseof urgency such as an expiration date onspecial offers.• Benefit oriented advertising.What makes your agency different fromothers? What do you offer that othersmight not? Direct marketing is a versatileway for you to clearly tell the consumerwhy they should come to you forall their insurance needs.• Results measurement. With directmarketing, it’s easy to tell if youradvertising is working. By providing theconsumer with a method of responding(such as a business reply postcard, a coupon,an e-mail address, a Web site or aphone number,) you can quickly determineif your message is getting results.Apples or oranges?Because the objective of direct marketingincludes generating immediate sales, in-creasing customer retention, and relationshipbuilding, selecting the right direct marketingchannel is the key to success. However, justlike insurance plans, comparing advertisingmedia isn’t always easy. Every channel hasits advantages and disadvantages as you’llsee in the snapshot, located on page 20, ofthe top direct marketing channels.Marketing myths versus factsThere are some common misperceptionsabout direct mail, many of thembased on personal feelings. It’s safe to assumepretty much all of us grumble fromtime to time about “too much advertising.”But, in reality, we also pay attentionto it. If a consumer is interested inpurchasing an insurance policy, he or shewill look for opportunities to gain informationand insight to help them maketheir buying decision.Myth#1Consumers don’t wantdirect mail.FACT: Actually, most people considermail to be an important part oftheir life according to studies doneby the United States Postal Service®.When direct marketing provides an answerto a problem or offers a solution toa need, consumers are inclined to findit useful.Myth #2Consumers don’t read their mail.FACT: A recent study* revealedthese top three things Americans saythey “always or usually” do with envelopescontaining marketing, advertisingor promotional material they receive bymail:• 66 percent open the envelope ifthey think the contents might be interesting.• 61 percent open it if they thinkthe contents will be of personal interestto them.• 59 percent open it if they can clearlyidentify the purpose/sender from theenvelope.Myth #3People don’t pay attentionto their mail.FACT: Au contraire! When it comesGrow your Book of Business Every Month with Valpak ®• 75% of Allstate autoand homeowners/renters insuranceconsumers usecoupons.• Valpak ® 90%consumer awarenessis #1 in the shareddirect mail industry.• Nearly 40 yearsexperience buildingbusinesses like yours.Valpak ® Matches the Allstate AudienceAllstate Auto AllstateInsurance Homeowners/Renters Valpak ®Customers Insurance Customers ConsumersHH Income $35K+ 78% 80% 76%HH Income $50K+ 58% 61% 62%Age 18-49 61% 59% 60%Age 25-54 58% 58% 58%HH w/Children 42% 40% 28%Contact your local Valpak ® business consultant at 1-800-669-1778and get started growing your agency BOB today!Sources: Scarborough Multi-Market, 2006, Release 2; Claritas, Inc. 2000 Census with current year projections.Fall 2007 Exclusivefocus — 21
- Page 1: ExclusivefocusFall 2007An Official
- Page 4 and 5: AAs you read through this issue of
- Page 6 and 7: to find quality vendors who offer a
- Page 8 and 9: I want to congratulate you all on a
- Page 10 and 11: and stay involved. Come up with som
- Page 12 and 13: featureWill Your AgencySink or Swim
- Page 14 and 15: Smaller agencieshave a more difficu
- Page 16 and 17: featureIs the Grass Really Greenero
- Page 18 and 19: association benefitsIndustry Leadin
- Page 22 and 23: to direct marketing, the EMAF study
- Page 24 and 25: featurePutting Together an Idea Sha
- Page 26 and 27: technologyExclusive Interviewwith M
- Page 28 and 29: That sounds so Lex Luther…AS: Wil
- Page 30 and 31: featureThe Canadian Experiment:a Pr
- Page 32: marketingA Small Business Perspecti
- Page 35 and 36: Looks like a job for AMS 360.Free y
- Page 37 and 38: Hmmm... what could they be chatting
- Page 40 and 41: NAPAA AnouncementDear Agency Owners
- Page 42 and 43: technologyDSL - Reliable, Cost-Effe
- Page 44 and 45: usinessStepping Stones to Purchasin
- Page 46 and 47: technologyAnatomy of aToner Cartrid
- Page 48 and 49: association benefitsAnother Brick i
- Page 50 and 51: technologyManaged ServicesThe next
- Page 52 and 53: technologyProtect Your ElectronicCu
- Page 54 and 55: usinessWhen Your Callers are On Hol
- Page 56 and 57: usiness tipsHow to SuccessfullyBran
- Page 58 and 59: featureSix Keys to a Winning TeamTh
- Page 60 and 61: You should set one, three and fivey
- Page 62 and 63: the NAPAA market placeAgencies for
- Page 64: “Coaching is an invaluable resour
marketingFinding the RightMEDIAf o r t h e B e s t R e s p o n s e :A Direct Marketing Overview for Insurance AgentsBY TINA MORGANIIt’s something every startup agencyowner learns very quickly – navigatingthe twists and turns <strong>of</strong> marketing youragency is tricky. Even seasoned veteranscan get confused about the pros and cons<strong>of</strong> direct marketing methods and howthey stack up against each other.In this article, we’ll explore the power<strong>of</strong> direct marketing and blast throughsome <strong>of</strong> the myths surrounding differentmarketing channels to help you select theright media to win more customers andincrease your BOB (book <strong>of</strong> business.)Where does direct marketingget its strength?Direct marketing is targeted, trackable,measurable, cost effective and hasincredible staying power. As a marketingtechnique, it is considered an indispensablepart <strong>of</strong> successful media campaignsand a commanding stand-alone strategy.What are the defining characteristics<strong>of</strong> direct marketing?• Precise targeting and market segmentation.Your message gets in front <strong>of</strong>those consumers most likely to respondto your <strong>of</strong>fer.• Research and testing. There aremany reliable and nationally recognizedresearch services available to assist youin obtaining census, demographic andpsychographic data before you start yourChannelDirect MailYellow PagesCable TVRadioNewspapersAdvantagesTargeted, trackable results,space to add benefits details,many options for visual appeal,consumers can spendtime with ads, shared mail isaffordable.Widespread consumerawareness, used as a referencetool, consumers canspend time with ads.Visual appeal, wide reach,targeted, affluent audience.Targeted, affordable production,large and portablemedium, short lead time,impactful.Visual appeal, space forbenefit details, trackable,short lead time, consumerscan spend time with ads.DisadvantagesConsumer acceptance canbe spotty; but when they readdirect mail, they tend to readfrom mailers they know andtrust, mailing costs for individualpieces are increasingdue to rising postal rates.No flexibility for seasonalvariations or “specials,” adclutter, out <strong>of</strong> date publication,too many books confuseconsumers, costly.Small audience for individualchannels, high TV commercialproduction costs (low cost,low quality commercials arenot effective), difficult forconsumers to respond, subjectto DVR time-shifting and adskipping.Low reach due to fragmentedaudience, difficult for consumersto respond, subject tostation surfing to skip ads.Steadily decreasing penetration,ad clutter, no separation,people browse more than theyread, can be costly.20 — Exclusivefocus <strong>Fall</strong> 2007
Change language