Email Marketing for Insurance Companies

As an insurance agent, your livelihood depends on your ability to both convince customers to buy a policy and to convince them to buy a policy from your agency.

In addition, you should strive to develop long-term relationships with policyholders in the hopes that they’ll come to you for all of their insurance needs, and email marketing is a great way to start that relationship.

The problem with many marketing methods is that they’re one-sided. The company talks while the customer listens, regardless of the customer’s individual needs or concerns. Online marketing allows for more back-and-forth between buyer and seller, and email provides one of the best opportunities to encourage real communication that can lead to mutually beneficial relationships.

On this page, we'll explain why email marketing is a successful marketing strategy for insurance companies, why it fares better than other forms of communication, and what your firm can do to implement a successful email marketing strategy.

What are the benefits of email marketing for insurance companies?

It’s important to stay in touch with current policyholders and let them know you understand their needs, and email marketing lets you do that. It also helps you reach out to potential new customers with the same promise.

In addition, it has quite a few other benefits over other marketing methods:

1. Personalization

One way to turn customers away from your services is to send generic, bulk emails that are addressed to a general group, like "valued customer."

In one study, 75 percent of consumers said they prefer personalized offers, which means that emails addressed to one specific person and tailored to his or her specific needs are more likely to drive positive relationships.

Personalized emails also help customers to feel valued and appreciated, which can make them even more comfortable with relying on you for their insurance needs.

2. Timeliness

In such a fast-paced world, waiting for postcards or brochures to make it off the press can be long and tedious in comparison to digital marketing techniques. Not to mention that traditional forms of marketing (like direct mail), have started to become obsolete, where as techniques like email have picked up speed.

Emails are a fast and efficient way to send information to potential and current customers without the wait time of printing and delivery. Email is nearly instant!

3. Measurability

It is nearly impossible to find out if a postcard was the reason for a customer conversion.

With email marketing however, you can see metrics like open rate, clickthrough rate, and response rate, in addition to a wealth of other information that is helpful to your marketing campaign.

Having this information at your fingertips is a huge benefit because it allows you to see what is and isn't working in your emails, so that you can change them accordingly to get the best possible results.

4. Better Communication

Even a mass email can feel like a one-on-one interaction if the email is properly customized, which makes it easier to send important messages to policyholders. Personalization lets the customer know that you care about them and their needs as an individual customer, which bodes well for your agency overall.

For example, most consumers would probably ignore a TV ad about a new policy, but a personalized email that caters to their specific needs is much more appealing. Instead of providing a generic message to everyone through a television screen, you'll be marketing directly to the people that need and want your services.

How can you build an email marketing strategy?

Email is an effective and cost-efficient way to keep in touch with current customers and attract new ones. However, this is only true if you have a strategy—random emails send in a haphazard manner won’t do much for your business.

Everything you send should be carefully scheduled, researched, and written. So before sending your first email, make sure you do the following:

1. Determine your marketing goals

Why are you using email marketing? Do you want to attract new policyholders, or upsell to your existing customers? Do you want to lower acquisition costs, or speed up the buying cycle?

The goal of your campaign should reflect in the information you provide in your emails.

Email isn’t very effective if you’re not sure what you’re trying to accomplish. That’s why your strategy needs to be built around a specific goal or set of goals, so that you’ll have an easier time focusing your efforts toward the right messages, calls to action, and target audience.

2. Build a subscriber list

Most web users don’t like receiving unsolicited emails. That means buying an email list isn’t a smart option. Instead, you should build one organically.Fortunately, there are many channels you can use to do this.

Include an email field on each form you use to write or renew policies or collect premium payments. Place an opt-in button on each page of your insurance website and on your contact form. But don’t forget to include an opt-out option as well—some people might want to communicate via email but not receive marketing messages.

3. Choose an email platform

It’s virtually impossible to send targeted email to thousands of policyholders by yourself. You need a program that can help you streamline the process. There are several automation programs out there that can segment lists, schedule emails, send automated replies and customize messages to reflect each individual account.

MailChimp is one of the most popular email automation programs, and offers a package for free, up to $199 per month, depending on your needs.

At WebFX, we use our proprietary program, myemailFX. With our software, you'll benefit from one of our four packages that offer varying degrees of email automation benefits.

4. Analyze and revise

Once you have a strategy in place, you need to make sure that it is actually working. How many people are reading their emails? How many are clicking links? How much revenue is it generating?

One of the advantages of email software is its ability to measure the effectiveness of each campaign. Use the features available to you, and determine whether or not you are reaching your goals. Measure open rates, clickthrough rates, and other KPIs to determine the effectiveness of each individual email.

If you aren’t reaching your goals, it’s time to adjust your strategy. By looking at what your customers respond well to (as well as what they don’t), you’ll have a solid starting point.

Want to sell more insurance?

Policyholders want to know that their insurance carriers are listening to them and are available if something goes wrong. That requires two-way communication. Email marketing helps foster this communication, not only allowing customers to speak to their agents, but also increasing trust and long-term revenue prospects.

If you need help creating and implementing an email strategy that accomplishes all of these goals, don’t hesitate to contact us. Our talented team of Internet marketers is more than happy to help you get started.

Ready to start your email marketing campaign? Call 888.449.3239 or contact us online today to learn more about how WebFX can help your insurance company generate more leads.