Unsolicited Homeowners Quotes

[Guest]

I've done it.
When I did it, I had a breakeven (year 1) ROI. From that aspect, I would consider it pretty successful.

But.....

As the housing market collapsed, so did this program. I had to put it on pause for the last few years. I'm getting ready to try a sample run to see if I can have success in it again.

For the L&H agents who just read a breakeven ROI and went 'Huh????', this is pretty normal in the P&C market for customer acquisition. After this, you shoot for cross-selling the auto, life, and health.

Dan

What about just calling them instead of sending a mailing? It's cheaper (saves costs of stamps). Do you think its just less successful that way?

I've been using Cole for x-dates and am trying to find the best way to start this conversation with the HO. Trying to decide to mail, call, or just stop by their home and knock their door.

I pretty much know that 9 out of 10 times I am not going to be able to beat their HO rates, but that I can blow away their autos, making overall cost to insured lower. That's my predicament and I'm trying to find the best way to go about getting in front of prospects.

 

[djs]

Just calling is good, but you can only reach MAYBE one out of 20 households due to DNC. Almost everyone is on it now.

If you pay someone to do the calling, its not that much different than paying the postage. Works out about the same in the end and your touchpoint density is a bit higher.

To be honest though, I've found different areas to have different methods that work. Around here, door to door is useless. Heck, you even have to register with the city first to do it. Nobody will give you the time of day anyway. Other areas, it probably works great.

No single solution, do what works for you.

Dan

 

[Conwaylife]

In the coastal region of SC admitted carriers are few and far between so everything is monoline for the most part. I have been using cole xdates to mail letters offering to quote the home. I get about a 2-2.5% response and quote everyone that calls in. It really makes a difference where you are though because with a coastal risk HO is wayyyy more $$$ then an inland quote and it makes financial sense for me to do it this way.

We have an agent that is running the home with a carrier as a indication then mailing it and she gets decent response but with our better carriers credit becomes an issue and she has lost most of the quotes she has done.

 

[djs]

2% is awesome for direct mail campaigns. Keep it up.

Yes, if the pricing indication is way off, then it is hard to close the sale. Its still good to get your phone to ring, but she needs to find a way to close the deal. If she has access to some other carriers that are less sensitive to credit, maybe she could add a few price indicators to the letter and just say 'Let us do the shopping for you'.

Dan

 

[Conwaylife]

To be honest if it was anywhere else where premiums were not so high and people are being non-renewed left and right then my response rate would not stand a chance.

The other agent just thinks her way is the best and will begin to learn the hard way over time and after spending a bunch of money.