SYLMAR, CA
President of Addressers (www.theaddressers.com), a Southern California Direct Marketing Company, Kent Moon has observed increased interest in use of direct marketing and direct mail as a means of customer retention.
"When a company has spent a small fortune to acquire a customer, it only makes sense to focus on the actions that help retain customers. Direct mail is one of the best ways of reaching customers, introducing them to all the benefits of the service of product they now own." Moon said.
Health insurance is an example of a large industry beginning to consider the need to market direct to existing customers. "Health insurers are just beginning to open their eyes to something that other industries have been doing for years," says Carlton Doty, vice president and research director at Cambridge, Mass.-based Forrester Research, Inc.
A 2008 study conducted by Forrester found that 18% of people with coverage in the individual health insurance market indicated that they are likely or very likely to change insurers. With annual premium of $5,500, failure to retain health care customers is an expensive proposition.
Richard Tooker, Vice President of KnowledgeBase Marketing, a Texas-based direct marketing firm, says: "Health insurers are spending money and effort to improve the member experience, but what they don't do very well is communicate with their members. Some people never hear from their [health plan], but they do hear from all of their competitors."
"Customer retention is not just a concern for huge companies." Addressers President Kent Moon noted. "It is even more important for small business where margin for error is smaller. Direct mail is the best way to reach and engage customers. The most recent article on our blog addresses this subject." http://theaddressers.typepad.com/
Addressers is a direct marketing company that has provided direct mail and fulfillment services to companies primarily in the greater Los Angeles area for more than 20 years. Unlike many companies where customization capabilities are limited, Addressers can provide clients with timely and cost-effective solutions by custom designing mailing, fulfillment and databases using time-tested proprietary modules.
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