Insulation around the tank will definitely help keep the heat you paid for in the unit where it belongs. It is a quest of diminishing returns, but the cost is small for a pretty permanent solution. That being said, anything worth insulating is worth superinsulating. Due to the nature of your billing structure, spending "too much" more on superior insulation will only leverage your gains in savings.
Another great idea some other members have had success with is the use of PCM (phase change material) to boost your tank's heat holding capacity. Once unprecedented and obscure, this method has been perfected to the point where you can purchase products to fit your needs. The PCM stores and releases heat using latent energy transfer at a narrow range of temperatures. Using it has the effect of making your tank act larger than it really is.
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