Businesses use email to deliver messages to the target audience. Although email is not as savvy as social media or digital marketing, it has high rates of success in lead generation and conversions. Companies that use emails are able to nurture leads to generate 50% in sales-ready leads while lowering costs to about 33%. On the average, nurtured leads can produce 20% increase in sales as compared to opportunities in non-nurtured leads.
For the insurance industry, emailing is an ideal tool for lead nurturing and customer acquisition in addition to retention of customer loyalty. According to ExactTarget, for every $1 spent in email marketing, the company gains $44.25 returns on investment. The insurance industry must never miss the opportunities provided by email marketing; however, before starting on the campaign it is important to consider several factors:
- Know your target audience – for an insurance marketer, data is very important. There are different sources of data that can be integrated into the marketing database like customer service records, transactional data, credit card purchases and email lists. In addition to the data that has been aggregated from different sources, personal information like occupation, date of birth, gender, contact numbers, homeownership, etc. has to be collected to be more familiar with the target audience.
- On the average, about 30% of subscribers usually change their email addresses. The emails never reach the target audience meaning there must be a record of missing email addresses on file. Through a validation process, duplicate email addresses, invalid emails and spam traps will be determined.
- There is a higher rate of response from prospects and customers who are sent a personalized email based on their interest. Instead of simply deleting the message because of non-relevance, a prospect that received a personalized email has higher click through rate than the non-personalized variety.
Marketers can use insurance email marketing to provide more information about the company particularly if there are promotions or specific offers that will be interesting to the target audience. Since it is highly possible that an insurance marketer is using other online marketing strategies, email marketing must not be overlooked since they can provide additional demographic details of prospects.