Top 10 Things We Learned Last Year

1. Digital integration with direct mail is a no-brainer. 
We’ve run multiple lift tests, across various client verticals, on direct mail with digital integration versus direct mail only. The median conversion rate life for digital integration is 65%. At 5% of your total budget, having digital integration on a direct mail campaign just makes sense.

2. The better the data, the more revenue campaigns tend to generate. 
Clients that share more data attributes with us on their customers tend to perform better than those that don’t. It allows us to better target the client’s customer base and ensure we’re only providing them with relevant offers via the channel where they most prefer to interact. When we have more insight into the data, we can maximize revenue for our clients and manage customer touchpoints much more effectively.

3. Gen Z wants more than just supplemental insurance. 
They react better to package options that allow them to pick and choose for their needs. Gen Z prefers convenience and being able to decide what they want through a list of packaged options rather than having to dig through separate offerings and sign up for everything separately.

4. Financial institutions should be putting marketing dollars toward the younger demographic due to the greatest wealth transfer in our nation’s history that is quickly approaching. 
Among our credit union clients, over 40% of their new members in 2023 are under the age of 40. This is the first time we’ve seen this trend. Appealing to this younger generation means offering financial education, digital banking, personalized service, lower fees, flexible lending criteria, and insurance protection designed for their needs.

5. Organizational core values—and living these core values—are crucial to a company’s success. 
Younger generations especially are truth seekers and are acutely aware of companies that don’t live up to their mission, vision, and core values. As you’re looking to attract younger consumers—those in their prime borrowing years—it’s essential to be the financial institution applauded for setting core values and sticking to them.

6. You often need multiple touchpoints to convert to a sale—ignoring the first outreach does not necessarily equal lack of interest. 
In our email and drip campaigns, we have seen this to be the case. A simple reminder for products has increased engagement in a smaller, more targeted population. It seems that these members appreciate the reminder as results have been strong (open rates, click-through rates, enrollment, etc.).

7. Supplemental insurance purchase rates are up year-over-year. 
According to LIMRA, workplace supplemental insurance product lines recorded growth in the fourth quarter [of 2022]: accident insurance grew 9%, critical illness climbed 12%, cancer insurance improved 9%, and hospital indemnity experienced 10% growth.

8. Consumers value embedded insurance from their financial institutions more than ever due to increased concern about fraud. 
Knowing and trusting their money-holding institution makes them more likely to trust insurance offers. Offers from unknown companies in a scam-heavy environment raise safety concerns. But receiving the same offer physically through the mail from their trusted financial institution assures them of its safety, especially when they believe the institution prioritizes their financial health.

9. Personalized URLs and QR codes are more convenient for the member, and individual tracking data can be captured to know more about the type of engagement an individual had with your mail piece. 
This ensures that regardless of whether you’re using direct mail or digital marketing—or both—you will be able to track your efforts and provide the best experience for members. They also mean less effort for members, so they don’t have to dig through your website to find their specific offer and where they can sign up.

10. AI plays a pivotal role in modern marketing by offering automation and deep insights into consumer behavior. 
Through AI-powered tools, businesses can automate repetitive tasks, streamline processes, and optimize campaign targeting. Machine learning algorithms analyze vast amounts of consumer data, uncovering patterns, preferences, and trends. This enables marketers to create personalized content, predict customer behavior, and deliver relevant offers, ultimately enhancing customer experiences and driving business growth through data-driven decision-making.

Thanks for reading! Do you have something you’d like to add to this list? Please email your feedback to andie.lindgren@franklin-madison.com