Direct mail is a sales technique used by many finance and insurance professionals to attract new clients. You can invite prospective clients to an event, give them a publication or offer them information and advice. Whatever you send, the message is the same -- "Call me! I can fulfill your needs."

Effective and Cost-Efficient Communications Tool
Compared with advertising, sponsorships or other marketing techniques, direct mail is an efficient and cost-effective method for independent insurance agents and advisers to get the phones ringing.

Generally, direct mail is a bulk mailing delivered either through the postal service or a specialized direct mail company. When budgeting to execute a direct mail campaign, be sure to factor in all the costs of producing and delivering the materials:

• either staff or outsourced time to write copy and design graphics
• supplies (letterhead or cardstock and envelopes)
  printing
• either staff or outsourced time to execute a mail merge, fold letters and stuff envelopes
• list purchase (if you're not using your existing client database)
• postage

The most effective direct-mail packages typically generate a response rate between one and two percent. That means if you send out 1,000 envelopes you can expect 10-20 prospective customers to respond. Calculate how much you would have to spend on print or media advertising to find 10-20 customers who want to meet you and discuss your services?

Getting the Envelope Opened
Everyone has received junk mail and tossed it in the trash without ever opening it. But most people have also opened unsolicited mail, wondering if the message inside is relevant. What's the trick to getting your prospects to open a direct-mail envelope?

First, use nondescript packaging. A plain, white business envelope addressed to the prospect with your company name and return address is all you need. It's difficult for the customer to know from the outside what this sort of envelope might contain, so curiosity will work in your favor.

Capturing Attention
Once you've achieved that first step of getting your prospect to open the envelope, you need to capture his or her attention. One great way of ensuring that your message is read is to repeat it. The most effective direct-mail packages for insurance professionals will have at least two pieces inside. Each piece should carry the same overall message and each should stand on its own. If your prospect discards one part of your package, all the pertinent information should remain in his or her hands, so be sure both enclosures carry all the necessary details.

One idea for bringing in new prospective clients is to send an addressed letter along with a flyer about a special offer or event. Be sure that the flyer looks professional and is an effective communications tool. Consider sending a newsletter or other informative content from one of your insurance carriers. If you are planning an event or a special offer, consider hiring a designer to produce an effective piece.

Writing an Effective Direct-Mail Letter
In writing the letter, use customer-focused language. Tell prospects how they will benefit, rather than how good you are. Avoid, "We are the best insurance broker in town." Instead, try phrases such as, "You will get the lowest insurance rates in town from us."

The first paragraph of a direct-mail letter should give the reader a reason to keep reading. Tell your prospect that they have a need, demonstrate that you understand that need, and tell them you are the best person to fulfill that need. For example:

"You want your possessions to be protected from damage or theft, but you also want to save money. Insurance seems like a good idea, but you don't want to spend more than necessary. You need to talk to the insurance professionals at ABC Insurance Brokers, where our clients get value for their money and peace of mind knowing their possessions are protected."

The second paragraph should offer details about your company and how prospects can benefit from your services. The third paragraph should tell the reader how to contact you for more information - and that should be the end of the letter. Keep it short and to the point.

Postscript
One of the most important and most neglected parts of a direct-mail letter is the postscript. If someone is only glancing at your letter, they are most likely to read the first sentence and the P.S., so make your postscript count! Repeat the crux of the letter. Tell them to call you for more information about insurance. And be sure to repeat your phone number.

Overall, keep your letter short and simple, use wording that offers benefits to your prospect, and give that individual a reason and an opportunity to contact you for more information. Include a flyer or brochure to promote an event or product. And remember, direct mail alone won't retain clients, but it will help get you that first meeting or phone call.

Creating the mail piece is fun. Getting it mailed to the right people is a strategic and sometimes frustrating process. To make sure you've covered all the painstaking details, check out part II of this article, Get the Package Delivered.

Please send your comments, questions and article proposals to information@smartpros.com.