What Is Direct Marketing in the Insurance Sector?

••• Jupiterimages/Photos.com/Getty Images

Today, the changing needs of consumers has led insurance companies to use direct marketing strategies instead of relying solely on field agents. Direct marketing offers advantages to both insurance companies and consumers.

Definition

Direct marketing in insurance is the use of television, radio, print, website and social media advertising to attract customers. Typically, customers are encouraged to contact the company directly to obtain quotes and start policies.

Direct Mailings

Insurance companies frequently use mailings as part of a direct marketing campaign. Prospective customers receive postcards or letters encouraging them to contact the company.

 

Marketing Efficiency

Direct marketing gives an insurance company greater control over the message that is conveyed to potential customers. It also allows the company to save money on advertising through economy of scale.

 

Convenience

Customers can enjoy the convenience of working with an insurance company over the phone or via the Internet. In many cases, customers can obtain quotes and coverage without leaving their homes or offices.

 

Savings

Because insurance companies save money through direct advertising, they can pass those savings on to customers in the form of lower premiums.