Profit Marketing, Inc. conducted a case study on XDATE Premier, which is a homeowner X-Date marketing service on an agency based in Texas. The following information is the conclusions of our results.
Background on Texas Agency
This specific agency is a property and casualty insurance group with a network of offices throughout the state of Texas selling homeowners insurance, auto insurance, life insurance, and financial services. The homeowners insurance includes coverage for homes, condominiums, and mobile/ manufactured homes. They also provide specialty coverage for renters, earthquakes, floods, and identity theft.
This agency is a member of the third largest insurance company in the US servicing over 10 million households in 41 states through the efforts of approximately 20,000 agents. They are also considered to be a Championship Agency, which is the distinction given to an agent, who is among the top three percentage of Farmers agent and has achieved certain production and performance goals. Their network is home to several championship agents and at least two of the top fifty agents nationwide for homeowner’s insurance policies.
This Texas Agency was responsible for generating their own leads and increasing personal lines production. They have also been struggling on how to grow or maintain Texas Family Home Policies (TFHP). Some of the biggest challenges that were faced were the current economic climate, which has been reducing the number of referrals that the Texas Agency normally receives from services such as mortgage brokers, realtors, or title companies. Along with that the Texas homeowner’s market is mature, budget and response challenged, and price is playing a major role with reduced business and decreased retention. From these factors consumers in Texas are highly price sensitive. Furthermore, average Texas consumers either do not think to or are unaware of their ability to rate shop home insurance policies and/or are underinsured. The bottom line is that Texas agents are losing PIF and agency revenue.
Profit Marketing, Inc.’s Solution to this current situation is XDATE Premier, a Homeowners XDate Direct Marketing Service. The benefits of this system are as follows.
XDATE Premier is a turn-key marketing solution that combines the efficiency of accurate, qualified lists and timing prior to policy renewal with an easy to understand value proposition to quote your premier prospects. It increases productivity by reducing time spent on prospecting and correspondence. We have found that it generates a better than average response with our quoting system, is able to target an audience with a variety of demographic characteristics, and is a flexible solution with a responsive provider who adapts to agents needs, because these agents can service customers better and faster by converting responses into live policies and cross-sell of additional products. Consumer’s also liked that there are no contracts to sign. Benefits are maximized when used alongside our complete mailing services including customizable direct mail letters, premier prospect, print, postage, and fulfillment, saving client’s not only time, but money as well.
Prior to XDATE being used in a single office within this network, December’s direct marketing cost for homeowner policy renewals equaled $1,600.00, the number of prospects equaled 1907, total revenue was equal to $1,576.00, and return on investments was -2%.
Following the introduction of XDATE Premier Solution there was a 106% return on investment on January, a 66% increase in total financial benefits (determined by looking at reduction in cost and increase in measurable business metric- sales), a 20% decrease in cost with our turn-key solution, and a 13% increase in Premier Prospects with our targeted marketing audience.
The following is a breakdown of our figures and calculations.
- 2,155 Premier Prospects
- Total Cost of XDATE Premier Solution = 2,155 x $0.59 = $1,271.45
- Total Financial Benefit of XDATE Premier Solution = $2,286 + $328.55 = $2614.55
- Return on Investment = (Revenue – Cost)/Cost = ($2,614.55 – $1,271.45)/$1,271.45 = 106%
- % increase in total financial benefit = ($2614.66 – $1576)/$1576 = .659
- % increase in prospects = (2155- 1907)/1907 = .13
Over the course of 6 months after the introduction of XDATE Premier the Texas Agency has had an increased Response Rate by 1%, an increased Close Rate by 20-30%, tripled its total monthly premier prospects for homeowner policy renewals going from 17,000 in October to 54,000 in March, and tripled its network size from 11 agents in October to 34 agents in March. From this can you imagine what the total financial benefits and commissions have been.
PMI Company Background
For over 15 years, Profit Marketing, Inc. has helped various types of businesses and individuals; especially those in the Insurance and Financial Services Industry increase their profits by providing them with extremely accurate and precisely targeted direct marketing lists. At Profit Marketing we understand the marketing strategies and goals of our customers, and therefore are able to offer our clients the best service and highest quality marketing data available. And now with our new marketing solutions; XDATE and eDIRECT, along with our extended printing and mailing services, we can provide you with the most comprehensive and efficient products. All while still taking the time to know and understand the products you are trying to sell and make sure the right message is delivered to the targeted audience.
For years, many savvy businesses and individuals have used a wide variety of the direct marketing programs offered by Profit Marketing, which has enabled them to successfully deliver their message to the right audience. And it works. Just consider the lifetime value of one new client. Then, multiply that by hundreds of new prospects!
With years of experience in list management and marketing, along with the best direct mail products available, Profit Marketing has the knowledge and experience to help you drive new revenue into your practice or business. When you use Profit Marketing you can be confident that your marketing piece is not only deliverable, but that it will be reach the right people to be most effective for a maximum ROI.