When a bank or credit union decides to offer insurance products to their consumers, they’re taking an important step toward increasing their non-interest income and improving their consumers’ financial health. But to ensure the time and money invested in insurance marketing is well-spent, there’s little room for error.
Dire as it sounds, there’s a clear path forward. Finding out which pitfalls to avoid can help you maximize ROI on your next campaign.
Are You Marketing Insurance Effectively? Sidestep 7 Mistakes
Among financial institutions, here are some of the most common insurance marketing mistakes being made:
1. Lacking targeted marketing.
If you aim at nothing, you’ll hit it every time. For banks and credit unions, this can often look like not taking the time to narrow down your target audience. A telltale sign is subpar conversion rates. At Franklin Madison, we’ve been gathering proprietary audience data for more than 50 years, which we use to pinpoint the most responsive consumer segment for our financial institution partners and ensure the success of each campaign.
Award-winning insurance companies agree that audience research holds the key. After receiving a Gold Award from PIMA Institute for a recent life insurance marketing campaign, Prudential’s marketing team was asked how they did it. Their answer? They credited their success to fully understanding their audience. When you know who you’re marketing to, you can strategically target the right messages.
2. Not using an omnichannel approach.
Once you get to know your audience, you can engage them in their preferred medium. Omnichannel marketing—or consumer-centric marketing that integrates multiple channels—empowers consumers by providing choice. A consumer can choose how they interact, whether online, offline, or in a combination.
Though digital drives most marketing strategies, our data shows that today’s consumer doesn’t want to exclusively interact online. By combining digital and direct mail into one cohesive omnichannel strategy, we see anywhere from a 20 to 35 percent improvement in campaign performance.
3. Overcomplicating direct mail.
Even when you implement direct mail, you can run the risk of making it too complex. For the greatest engagement, the “keep it simple” rule applies. Because consumers have an attention span of mere seconds, direct mail materials must get to the point right away.
This simple but targeted approach underpins Franklin Madison’s philosophy of smarter insurance marketing. Our data tells us what works in direct mail—with elements like a personalized promise, repeat calls to action, and offers of exclusive savings—and we stick with our proven formulation to achieve higher ROI.
How much would it help to have insurance marketing experts in your corner?
Contact us to start a conversation.
4. Giving too many options.
Along with overcomplicating the messaging, it’s not uncommon to market too many offers. It might seem smart to “maximize” your marketing by providing several offers at once. But advertising a laundry list gives consumers too many choices. Instead, cut the chaos by marketing a single offer so you can create a seamless consumer experience.
Today, nearly half of consumers would prefer to purchase life insurance from their credit union or bank. Sending out a single offer in this instance creates a unique value proposition.
5. Neglecting to adjust marketing messages.
Rarely is insurance marketing successful when you set it and forget it. Consumers want to know that their financial institution is attuned to their needs, especially when these needs change. When outside factors impact consumer behavior, marketing messaging must shift with it.
In times of economic strain, financial stress is high. Rather than focusing solely on promoting products and services, emphasis should move toward demonstrating value for the consumer. Beyond increasing revenue, financial institutions can also ask: What products and marketing strategies will deepen relationships?
6. Overlooking the value of offering more.
Simplicity sells, and so do samples if you want to attract consumers. You can read more here about using complimentary offers in insurance marketing. When a bank or credit union offers complimentary Accidental Death and Dismemberment (AD&D) insurance to their consumers, there’s an opportunity built in. Instead of getting a hard sell, consumers have the freedom take advantage of the complimentary insurance offer, as well as to increase their coverage at group rates.
Providing “sticky” (i.e., highly engaging) products like this also helps to increase loyalty and convenience. Consumers may view their bank or credit union as a one-stop-shop, and financial institutions can continue to cross-sell from their full suite of products and services. Supported consumers are less likely to jump ship.
7. Not having the right marketing partner.
If avoiding these mistakes feels overwhelming—it doesn’t have to be. Partnering with a skilled insurance marketing agency makes it possible to yield better results by sending data-driven campaigns. For financial institutions, there are distinct advantages in marketing and selling insurance products. Because of the absence of balance sheet risk, insurance sales can help boost a financial institution’s risk profile.
We’re Here to Help You Prevent These Mistakes
We can’t promise perfection. But with data-tested strategies and 50 years of experience, we can come pretty close. Contact us to discuss your insurance marketing needs and find scalable solutions.