Direct mail plays a big role in the insurance lead market. There are several steps involved in the generation of a direct mail lead and from our experience most agents do perform some aspect of the process themselves. Because of this we will be covering direct mail in greater depth in the lead generation section of the site. With that said there are still a number of options for buying direct mail insurance leads that are generated turnkey through a lead company. Below are a few of the positive and negative aspects of buying direct mail leads turnkey.
Direct mail is a good option for many lines of insurance and can gain access to potential prospects that might not be available through other popular channels. Perhaps the best example of this is the senior market. While internet based leads are playing a major role in most lines of insurance the senior market is still dominated by direct mail. If fact, there are numerous services that focus solely on niche areas of the senior market such as final expense and Medicare.
Direct mail is a tried and true method for generating insurance leads so one of the positives you can expect from ordering direct mail leads turnkey is that you can expect a consistent and dependable source of leads.
Direct mail lead companies typically have more experience tracking and optimizing their methods than a typical agent or agency due to the sheer volume of mailings. With that experience comes results in terms of mailer response. This isn’t a big deal if you are buying on a per lead basis but if you are buying leads per mailing it can prove the value in spending more money for a full service mailing.
One of the biggest drawbacks of buying direct mail insurance leads is the upfront expense required. While direct mail can be effective it is time and material intensive which makes the cost per lead significantly higher than one submitted via a form on the internet, which are typically available on a per lead basis.
Another drawback with direct mail insurance leads is the amount of time it takes to process a lead. Many prospects don’t recall even filling out and signing the mailing by the time an agent contacts them.
Ineffective for some lines
While direct mail can be used for most lines of insurance the response rate and expense is proving to be less effective for some lines compared to alternative options in the marketplace.