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Facebook Leads vs. Direct Mail

September 28, 2020

COVID-19 has changed marketing and lead generation for agents substantially this year. Most grassroots marketing efforts have come to a screeching halt for our agents which made even our most seasoned agents reevaluate how they were going to generate leads throughout OEP into AEP this year. Direct mail has been the one source of lead generation that has stood the test of time since the beginning. While the average response may have gone down over the years, it still tends to be consistent on average and many agents depend on direct mail as an important part of their lead generation campaigns.

While direct mail may be consistent on average, it is not always reliable and as we all know, nothing is ever guaranteed. Any good marketer will tell you to never have all your eggs in one basket. With the leads we are doing right now we have seen mailers pull as high as 10% and we have seen them pull .5% so you can never rely on direct mail as your only source of leads. With returns on direct mail varying, that can make your cost per lead vary which makes it a little tougher to budget and project your potential ROI. However, with direct mail, a client is taking a physical card and filling out their information and taking the time to send the card back which usually constitutes a more “qualified” lead.

Another route many agents have been taking for the last few years and increasingly so since COVID has come around, are Facebook leads. Facebook leads have been a great, fairly cost effective and more instant option in addition to direct mail. The average cost of a Facebook lead is about $20 and they are delivered in real time vs waiting a few weeks for a response to come in. There is no picking an area, running counts then dropping a piece and waiting to see how many you get back. You simply pick your area and determine how many leads you would like to order. The leads will start flowing into your dashboard real time and you may receive a call or a text directly from the client along with a request for information. This helps when you don’t want to wait for responses to come back in the mail and a lot of agents prefer this method for selling over the phone as the clients tend to be a little more tech savvy and able to complete electronic applications easier. You may have a few more people saying they never responded to the ad with Facebook as you do with direct mail but you have to weigh your positives and negatives. At the end of the day it all comes down to your ROI. I suggest my agents try a bit of both and work both types of leads to their maximum potential to get a good gauge so they can decide what works best for them.

The sales team at Pinnacle Financial Services tests many different lead programs on an ongoing basis.  Reach out to a team member to get the insight you need to have a successful lead campaign.

For more information, contact a Pinnacle Financial Services representative today

1 (800) 772-6881 x7731 | sales@pfsinsurance.com

Nick Palo

Nick Palo

Senior Sales Director - Health

x7728 | npalo@pfsinsurance.com

Contact a Pinnacle Representative if you have any questions.

1 (800) 772-6881
support@pfsinsurance.com

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