Cross-selling is one of the most effective ways to increase revenue, and using direct mail as your marketing strategy is the best way to get the job done.
Generating new leads is great, but it is five to 25 times more expensive than retaining an existing one. On top of that, a retained customer is more likely to spend and purchase more often, which can be costly for the company’s financial goals. That’s why insurance companies implement strategies that are designed to increase their audiences’ average order value.
And the best way to do that? Cross-selling.
Cross-selling basically means generating more business by selling complementary or associated products to people who have already bought your products. You might have thought about it that existing customers are actually easier to sell to because people who have already purchased from you are more likely to trust you and be interested in related services or products in your suite.
Direct mail is a tried-and-tested approach to reaching potential customers in the finance industry. It is also a powerful medium for cross-selling, as the bulk of households with incomes over $65,000 took action and purchased as a result of direct mail, an impressive response rate associated with direct mail makes it one of the most effective approaches for this type of sales method.
And to get the most out of it, here are a few things you should keep in mind when using direct mail for cross-selling:
- Know your target audience:
The key to cross-selling insurance products is proposing relevant and related products to your existing customers. Therefore, it is essential to understand your customers before presenting them with a new offer to purchase from you. You can use psychographic and demographic information and customer feedback to gain a better understanding of your audience and their goals. Armed with the information and the knowledge of an audience’s sales history, you can more precisely identify the most appropriate products to present for cross-selling.
- Improve buying experience:
Your aim for cross-selling should always, in some way, improve the buying experience of customers. And this is possible by having direct mail printing and mailing services in place. Suggest only products that add value to their initial purchase, and always keep it natural and relevant. For example, if someone purchased a life insurance policy from you using a discount code you mentioned in a direct mail promotion, it would make sense to cross-sell with an opportunity to buy disability insurance to provide financial protection in case of an unexpected illness or injury. Keeping offers relevant to the audience, based on their initial purchase, will keep you from coming across as sales-y and disconnected. This won’t overwhelm customers with irrelevant communications, creating a risk of damaging your brand’s reputation.
- Add a personal touch
Adding a personal touch increases the chances that your recipients will be responsible for your related offers. Your goal is to build rapport with your current customers, so look forward to your correspondence, not just tolerate it. To avoid landing in the “read later” state, you can take the help of direct mail campaign companies to get the job done or try using variable data printing to produce customised print collateral with tailored content and offers that are personalised and specific to your target customer’s interests and purchase history.
- Provide value
People are more likely to buy or spend more on a brand if they found value in it. The mailing companies in the USA suggest it is not enough to suggest what you believe in service. Instead, you can add value by including testimonials in your direct mail pieces. This will help you reinforce the positivity associated with developing a long-term relationship with your business.
- Reward with Loyalty
If you are thinking that your job is done when a customer takes an action and makes a subsequent purchase after a cross-sell effort, it’s not. When a customer decides to spend more money with you after the first purchase, then you should treat their reward as loyalty to you. You can accomplish this by taking the help of print and mailing services and mailing them a free gift, thank-you note, or specific discount code for a future purchase. Who knows, this display of appreciation may increase your chances of cross-selling again down the line.
Using direct mail to cross-sell an insurance product should be seen as a valuable addition to your insurance marketing and sales strategy. By targeting these existing customers and showing them that you “got them” by offering relevant products and services, you will not only increase your profits but customer satisfaction as well.
By demonstrating that they understand their customers’ needs and preferences, insurance companies can build a deeper relationship with their customers. In turn, it can lead to higher customer lifetime value and improved financial performance for the company. Embrace direct mail as a powerful tool for cross-selling, leverage the direct mail marketing company’s offerings, stay ahead of the competitors, and achieve long-term success.