They say timing is everything. We’ll that’s especially true when you’re attempting to renew customers into an optional insurance product. Because consumers seldom take action from one single, isolated communication, it’s a necessary devoir to develop multiple renewal solicitations (ideally across different media), and to push those out to your customers weeks ahead of their actual expiration date. This often makes it hard for insurance marketers to accurately measure the effectiveness of any one particular solicitation, as early communications often serve as awareness-building impressions for renewal solicitations closer in to the expiration date. Only through a disciplined “test-out/test-in” approach, where specific solicitations are either omitted or added, can you even attempt to gauge the effectiveness of any one particular communication on your overall renewal rate.
But there is one “must-have” renewal communication that is easy to implement, easy to measure, and is guaranteed to drive incremental renewals: the Post-Expiration Letter. Different than a win-back solicitation, this communication capitalizes on the innate human response that “Fear of Loss” is greater than the “Promise of Gain”.
Circling back to our timing is everything mantra, this post-expiration mail piece should be timed to be in the customer’s mailbox 3 to 15 days AFTER their expiration date. Once you’re able to calibrate the timing of this mail piece, the real magic then comes from how this mail piece looks, and what it says.
I have found through rigorous testing, that a business-like mailing—meaning a #10 window envelop with a single-sided, black & white lasered message—works best, with a headline that reads: “Notice of Expiration”.
Then there is some important nuisance that must occur in the copy. The lead in should be about letting the customer know that their coverage has expired, but in a matter-of-fact, non-threatening way. The second paragraph should then leverage another important emotional drawstring that all individuals seek to pull: the Second Chance. Here is where you mention—in a “non-promotional” way, that if the customer responds by a certain date, their benefits can be reinstated with no lapse in coverage. It’s the ultimate “Do-Over” that we all seek to get in life!
Another slight variation of this Second Chance message is the “It’s not you—it’s me” message generally relegated to that awkward break-up conversation some of us have had the misfortune to be a part of. This technique involves—after the notice of expiration message has been delivered—offering a mild “admission of guilt” that reads something to the effect, “It has come to our attention that we may have errantly omitted sending you some of the prior renewal communications intended for you to receive. As a result, we have made it possible to reinstate your policy without any lapse in coverage if you respond by XX/XX/XX.”
To create an even greater sense of urgency, I’ve found that limiting the call-to-action to phone-only works best. In addition, creating some sort of short generic offer code that the customer is urged to tell the phone rep reinforces the concept that you are making a true exception to the norm; that you are taking a non-standard, manual workaround approach in order to accommodate the customer and “make right” your potential error.
Once you get this post-expiration communication ready to be operationalized, it’s generally pretty safe to implement without having to hold out a control group, as tracking and measuring its effectiveness is simply measuring the incremental lift in renewals that occur past the original expiration date.
For help implementing a post-expiration communication for your insurance renewal stream, contact Metric Insurance Marketing Strategy at info@metricstrategy.com or visit www.metricinsurancemarketing.com.
