Easy Direct Marketing Methods for Insurance Agencies

This Month: Strategies for Letters, Post Cards, Newsletters,Testimonials, Referrals.

Selling insurance is tough: too many agents selling too few clients, andouch - trying to show value when all you are selling is a piece of paperthat no one really thinks he needs? until it's too late. But you knew allthat. Here's how to get more business and keep the customers youhave.

Send a "Thank you for your business" letter.

I'll bet you ten bucks that I know the last piece of correspondenceyour customer received from you or your providers: it was a bill. Right?OK - 99 out of 100 of you pay up. Break this cycle of insurance bills withsomething refreshing. Send a bottle of champagne. Just kidding. Sendthat bottle to me, Schramsberg/NAPA is just fine. To your clients andprospects, send a couple of refreshing "Thank you" letters.

Spend the 74¢

To keep customers happier and longer, twice a year send them aletter simply thanking them for being a customer. Let them know theirbusiness is appreciated. Paint a picture of your firm on high alert 24hours a day: if they need you - you'll be there. Let them know youappreciate their business and that you are eagerly waiting to servethem. Your customer retention rate will soar. Your customers will behappier; therefore, your customers will be your customers, longer. As forme, I'm still waiting for that bottle of Schramsberg.

Now I'm not talking about the pre-printed "Thank You" card you getfrom your accountant each Christmas. Ugh. That's close to worthless(don't tell your accountant, I'll start getting nasty letters). I'm talking abouta real, bonafide letter. Signed personally by you, or at least someonewho works with you who is willing to sign all those letters with yourname in a blue pen. Yes - twice a year. Cough it up: postage 74¢. That'snot much of a cost to retain a customer. Do you know what otheragencies call your best customers? Prospects. I personally think a letteris the cheapest customer retention strategy you can use, and the mosteffective. Hummmm... cheapest; most effective.

See, nice guy that I am, I started off this article with my best tip first.It's all downhill from here. Or is it?

Don't start a Newsletter.

That's right, don't. You've got to be crazy to start a newsletter. 90%of the ones I get are terrible: no direction, poor copy, lousy photos?everyone's dressed. Nothing like that Hooter's newsletter I, er, a friendof mine signed up for 2 years ago. What? What do you mean you don'tthink there's continually fresh and interesting news from a restaurantchain?

Most newsletters are written with no clear objectives, and some justramble on in a dialog "about" and "by" the president? like someonecared about his babble on the new boat he just bought. In reality - whereI virtually think we are - newsletters are just a lot of work. They may startout with some enthusiasm, but soon become the drudgery of month aftermonth of hard work, eventually assigned to someone as a thankless jobno one really wants to do. Without lively copy, great design, consistentfrequency and timely delivery, newsletters lose all effect of branding andbuilding customer loyalty.

Case in point: Q. The number one priority of a newsletter? A. It mustbe read. To be read it must be fascinating and interesting beyond belief.Remember, if it ain't read, it ain't working. See my article on newsletterselsewhere on this site. Or visit www.dobkin.com for this and otherarticles of marketing tips I've written.

Instead, create a series of post cards.

That's right, slightly oversized 5-1/2" x 8-1/2" post cards print nicely2-out of an 8-1/2" x 11" sheet. Spend some time on graphics and copy tomake them really interesting and clever. Since I just mentioned"newsletter," I know some readers are now hell-bent on creating anewsletter, so you guys can title your post card "The World's TiniestNewsletter." Then design it like a tiny newsletter. Well, I hope that madeyour day. Still stuck on newsletters? Call this number and complain:610-642-683. If I really cared, I'd have given you the last number, whichis 2. It's our fax machine. Or at least the fax machine of our competitor.

Post cards can look good printed simply in one or two colors? sothey can be inexpensive to print. While I don't mind one color printing, Ido always prefer an upscale sheet of paper (like bright-white CambricLinen). Don't use glossy stock unless your post card is printed in 4colors, as the post office mail sorting rollers will leave black marks on it.Mail post cards once a month to every 6 weeks for consistency, or tomaintain Top-of-Mind awareness.

Write about anything? as long as it's interesting. The limitations ofspace ensure the brevity of copy; this generally will make sure the cardremains interesting to a good degree.

Somewhere, somehow on the card, say "Call for a quick quote!" toencourage people to call. If the objective of the card is to generate a calland it doesn't, it didn't work, did it?. Supersize the phone number andfollow it by a longish laundry list of all the types of insurance your firmoffers (or that you can get for your customers). If it's a long list - and itshould be - set the list in small type - and print it on the lower portion ofthe bottom of the card.

Here's an example: Since you live in Nebraska, boat insuranceprobably isn't your main livelihood, or flood insurance either, so most ofyour customers probably don't know you can get these kinds ofcoverage for them along with their tractor insurance. By listing all thekinds of insurance policies you sell on this card, all your customers whoown boats (both of them) will get the message that they can call you fora quote. Other customers and prospects will see what they need also -and call for quotes, too.

The list of services is not the main message in the card, but it letsclients know that you offer a full depth of different products, and they canget all their insurance quoted and placed by a quick phone call to youroffice. Remember, if you don't get calls from your post cards, and thusadditional business - they didn't work. Then let me guess: Your mailingswent into your "we tried direct mail and it didn't work" file. Howunfortunate. Know who's getting those phone calls if you're not? Yourcompetitors. Their post cards went into their "Holy Cow! Look how muchmoney we made from this little post card mailing!" file.

Why are phone calls so important?All your business starts with a phonecall.

Any time you can make the phone ring - especially for a quote, youhave the opportunity to generate a sale, or perform a service for yourcustomer. Either way, if you look at this more closely as an opportunity,you'll find a phone conversation is a great way to increase a client'sloyalty and endear them even more deeply to you and your company.

If you can get the phone to ring from a mailed piece, the piece is atotal success, even if you didn't get any business at that exact moment.Here's why I say this: I've been in direct marketing for? OH MY GODAM I THAT OLD ALREADY!. Anyhow, it's tough to sell something from asheet of paper, especially insurance, which is sometimes tough to sellanywhere, even in a stuck elevator for 12 hours with 6 doctors whosemedical malpractice policies have an ex-date of tomorrow. Come tothink of it, if you want a business decision from a doctor you'll have toask his office manager or his wife. Either way, a "yes" answer will take amonth.

By trying to sell something directly from a sheet of paper, you get nofeedback, no buying signals. You can't tell where the hot buttons of yourclients are. When do you back off? When do you press for a close? Allthis may come subconsciously when you're selling in person, but Iassure you a lot of thought has to go into a printed piece to get to thesespecific areas with just the right timing, correct pace and sellingproposition to close a sale from a flyer that you sent in the mail.

Armed with the knowledge that it's very difficult to sell anything offthe page, don't even think about trying to sell anything from your mailpiece. The objective of 99% of the letters, mailers, post cards andbrochures I create for clients don't sell anything -- the objective is simplyto generate a phone call. My client is the one that does all of the selling.With your brochure, you do the selling when they call.

Face the further fact: create letters and mailers with the soleobjective of making the phone ring. When the phone rings - the pieceworked. Voila. Now we know it was successful. Then you sell the client.

For an article I've written on post cards, just drop me a letterrequesting it: Jeff Dobkin, P.O. Box 100, Merion Station, PA 19066. No,an email won't work. I'd like to make sure you really want it and an emailwon't show me this - I don't want to get 5,000 emails requesting stuff likethe last time I offered something free on the Internet. Ugh.

OK, let's get back to more tips about your post card mailings.Sending post cards every four to six weeks keeps your agency in "Top ofMind" awareness of your clients.

When they need new policies, or a quote? when they have friendsthat need insurance services -- they'll think of you. Whoa. When theyhave friends??? Can you say "referrals?"

Referrals and Testimonials

I don't know about you, but I hate asking people for referrals. Sohere's a way to get them, and how to use testimonials in your marketing.It's even tough for me to write a personal letter asking for a referralwithout sounding like a bleeding heart solicitation piece I once wrote forthe "Friends of Kaballah" association who needed money for guns,but? a post card can serve this function just right.

Let's say someone refers a client to you, from the post card you justsent them with the copy on it saying, "Thanks for all your referrals! Weappreciate our customers and friends who refer clients to us for our fastand friendly quotes. Don't forget: we're always ready to help anyone -whether they are our client or not - with any of their insurance questionsor problems. Please let your friends and colleagues know to just give usa call at 800-987-6543 - we are always happy to help." You rememberthat post card, don't you? So now what do you do?

Besides opening that nice bottle of champagne celebrating the newclient you just got, and then sending me a nice bottle of champagne forthat new client you just got - you know, the one you already forgot tosend me from the? oh never mind, you send the referring person athank you letter. No, a call is not the same. With a call, after you hang upthe phone you cease to exist. And don't even think about sending themthat pre-printed accountant's thank-you card we discussed earlier - it stillwon't work. You send them a hand typed letter thanking them. Rightfrom your own computer. Signed by you in blue ink. Same as before.

Here's what we do around here when we get a referral. We send thereferring party a nice letter, a really nice letter, and a Cross Pen,engraved with their name on it. Sure, we could have my company nameengraved on it, but the only person that would think that's great is? me.That pen goes inside their desk drawer. Big deal. But when wehavetheir name engraved on a pen - well, that pen goes in their shirtpocket (man), in their pocketbook (woman), or on top of their desk(neutered). And you just can't buy that kind of "top-of-desk" real estate.Or "top-of-mind" awareness.

Don't worry, they'll remember from whom they've received it - fromthe nice letter you sent them with the pen. You, umm, did send them areally nice letter with the pen, didn't you?

Thanks, Jeffrey?

Thank you very much for your kind referral of me. I appreciate it.

I don't take referrals lightly, or for granted. A referral means that youthought enough of my services to recommend me as a professional, andthought enough of me as a person to recommend me to a colleague.

I appreciate your trust - and assure you I will always act well withinthe framework of fairness and good taste, and will strive at all times toprovide exceptional value.

Thank you again for the privilege of your referral, the opportunity tobe of service to your associate, and your trust.

Kindest regards,

Jeffrey Dobkin

A call - or an email - is not the same. You see a "Thank you for yourreferral" letter is a touchy, feely thing - kind of like that cute little redhaired secretary you had until your wife found out. Don't feel too bad, mywife won't let me go out on dates, either. What the letter really says isthat you cared enough to sit down and type a personal letter, print it out,sign it, find an envelope and a stamp, and mail it. It was an effort.

Now they have a permanent record of your sincere thanks that cansit on their desk for days, and if it's anything like my desk it probably will.I have letters from 1995 on my desk. But that's in another article I wasgoing to write - about procrastination - but I keep putting it off.

So you've just sent a Cross Pen to a person who just referred a newclient to you. What do they think? They think: how nice it was, and startlooking around to see who else they can refer. Is a new client worth the$25 of an engraved Cross Pen. I think so.

Testimonials

Has anyone ever said anything nice about you or your firm? Oh.Don't worry, it hasn't happened to my firm yet either. But when anyonedoes say anything good about you, your firm, or your services, tell themthat it's very flattering to hear, and ask them if they would mind if you usethat as a testimonial. Wait for their answer. After that awkward pause,they'll say sure. Then they're committed. Then you make it more formal.

Youthen say, "Can I write down what you said and send it to you in aletter, have you look it over, and if it's OK would you approve it. If not,just let me know - that's OK, too." Most people, seeing that it won't be alot of work for themselves, will say sure.

So you can now write down pretty much what they said - and youcan take some liberties here, they won't remember exactly what theysaid - send it to them in a well constructed letter and have them sign it.You'll get a letter with a great testimonial (because you wrote it) thatsomeone has signed-off on without causing them to do any work. They'llbe happy. You'll be happy.

Also, here's a big plus: your testimonial letter will be free of anyspelling errors or typos that my own client's letters always seem to have.You know, that's why letters and articles I've written always have a fewtypos and spelling errors in them - so clients (and editors) won't feelembarrassed that they're the only ones who make those errors. And I'ma-stickin' to that story. Anyhow, never trust a man who only has onespelling for any given word.

When pitching to a new client, tell them the difference between youragency and others is service, and bring out a really big book of recenttestimonials. It's probably the most convincing sales tactic you can use.

©2003 Jeffrey Dobkin

Jeffrey Dobkin, author of the books, How To Market A Product For Under$500!, and Uncommon Marketing Techniques, is a specialist in directresponse writing. He writes powerful, response-driven sales letters, TVcommercials and scripts; persuasive catalog copy; and exceptionallyhard-hitting direct mail packages and blah, blah, blah... if it needs to bewritten, give him a call. He also analyzes direct marketing packages,ads, catalogs, and campaigns. Mr. Dobkin is an exciting and humorousspeaker and a more serious direct marketing consultant. Call himdirectly at 610-642-1000 for free samples of his work. Visit him athttp://www.dobkin.com.