Bull's eye

Have you ever actually responded to the contents of any direct mail package that landed on your doorstep? You probably never have.

Is that because the contents of the direct mail, the sales message or the packaging failed to make an impact on you? Or was it because the product that was being promoted was not suitable or of interest to you?

After all you are hardly likely to be interested in a subscription to an aviation magazine if you do not like aircraft. However, it is not necessarily a reflection on bad execution of the creative concept behind the direct marketing, it is most likely to be bad customer targeting.

As a result, direct marketing is often viewed as 'junk mail' and there has been quite a lot of bad publicity about the increasing amount clogging the UK postal system.

But it can work if you know your target audience and understand their needs and interests. For IFAs even a relatively small, but well targeted campaign to existing loyal clients can result in a good response rate and result in a significant increase in new business.

With the credit crunch responsible for a reduction in new mortgages and therefore a corresponding reduction in people taking out mortgage protection, one way of increasing protection sales elsewhere is to target existing clients.

A mass mailing by an insurance company to a huge list of names promoting critical illness cover might not result in a high response rate. But a similar message, carefully targeted at existing clients can really work for advisers. And the opportunities are there in the protection market; they just need to be developed. For example, how often have you used the number of 'guaranteed insurability options' on a protection product as one of the reasons why it is being recommended? But how many times have you then gone back and promoted these options later on?

Another angle would be to consider all your existing pensions clients. How many pensions have you arranged over the last few years? Loads? Your advice means that you have a good relationship with a substantial number of clients that, thanks to you, can look forward to a comfortable retirement in the future.

What happens though if they become seriously ill and cannot work? Even if they have a "waiver of premium" arrangement in place, this might not be enough to ensure that they can still attain their comfortable retirement goal. The waiver would pay premiums to keep the pension on track for the target retirement income. But if your clients are not receiving income from elsewhere perhaps they will not be able to afford to wait until their normal retirement date. They may then find themselves in a situation where they have to take their pension early. Income protection can solve this problem and bridge the gap. A direct marketing campaign to your pensions clients would be very relevant - almost the equivalent of sending the aviation magazine subscription offer to a keen aircraft enthusiast - very successful client targeting.