So, you have insurance leads, you have sales people, but you aren't getting the results you want. Insurance Leads aren't responding, your sales people are complaining about the quality of the insurance leads, and more importantly you aren't closing enough insurance leads.
How does one effectively manage their insurance leads, and what is the best method for distribution? Let's take a look at some Best Practices, and how successful insurance agents currently manage their insurance lead process.
1. Know How to Close Leads - A lead is worth nothing if you don’t know how to close it. Paying to generate insurance leads, whether it’s buying insurance leads directly or a marketing campaign to generate insurance leads, will net you little Return on Investment without knowing how to properly close those insurance leads Closing insurance leads over the phone is a science. It’s not as easy as “hey I saw you were shopping for car insurance, let me give you a quote.” There’s a process, method, and conversational guru-ism that comes with being able to close insurance leads over the phone. More importantly, are you able to close your insurance leads on the very first call? If someone walks out your door, or hops off your call without buying your insurance, your close rate just dropped 95%! Only 8% of Americans choose to extend their insurance buying process by more than 2 steps. Step 1 - Request a quote, Step 2 - buy the insurance. That is the desired buying cycle of 82% of Americans today. Somebody is going to close that insurance lead on the first call. Is that going to be you, or are you going to let your competitor take the cake?
2. Understand Your Lead Sources - This is important for a laundry list of reasons. Where your leads are being sourced tells you a lot about the person looking for insurance. Usually, buying insurance leads via a website, are real-time, low-budget, quick decision making persons. Those that come in through social development (IE LinkedIn, Twitter, Facebook, Yelp) are much warmer, and have already done much of their predisposed research. This eliminates them pushing the insurance sale to another call, because most of their concerns have been covered since they reached out to you! If you don’t understand your lead sources, you don’t understand your prospect. A gap in that understanding, is the gap between selling 100 insurance policies per employee per month, and selling 25 insurance policies in the entire agency each month.
3. Distribute Leads Effectively - Who gets what insurance lead? That’s a fair question. Most successful agents have their insurance leads distributed on a strategic level. Commercial Insurance Leads, Car Insurance Leads, Home Insurance Leads with Multi-Lining opportunities, Life Insurance Leads, etc all have a specific place to be sent. It’s common sense that maybe the least experienced person on the team would NOT handle complex lines of insurance like Commercial and Life Insurance Leads. Have them cut their teeth on something simple like single line car insurance quotes. Even the Home Insurance Leads with Multi-Lining opportunity should go to a more experienced rep. Also consider quotas needing to be achieved. A rep who has twice as much quota as another fellow rep should be getting a 2:1 ratio on leads. For every 2 leads they get, the other rep gets 1. This makes complete sense because their quota is TWICE as much as the other.
4. Be Quick to Respond to New Leads - Timing is everything when it comes to insurance leads. If an insurance lead is coming from a lead site, your website, or a socially generated avenue, this means your prospect is sitting down in front of a device whether desktop or mobile, shopping insurance. Your goal should be to respond to these insurance leads in less than 5 minutes. The contact rate (rate at which an outbound call connected to the prospect) of an inbound insurance lead between 5 and 30 minutes was 100 TIMES lower than within the first 5 minutes! This means if you call your insurance lead 5 minutes and 1 second after their request, you are 100 times less likely to connect, had you called them within the first 5 minutes. People don’t like to wait. It’s a simple reason why things like high speed internet, microwaves, and airplanes exist! There is a desire for speed. You must be quick to respond to your insurance leads, or you will certainly lose deals at a rapid pace.
5. Accurately Enter New Info Learned - Throughout your process, you will learn new pieces of information about your prospect. IE Additional drivers, or vehicles on a car insurance quote, claim information on a home insurance quote, or even reasons for shopping for a new insurance policy and the challenges that come with it. Notate EVERYTHING! The more filled out fields you have in your CRM Tool (Customer Relationship Management), the more marketing data you have for re-targeting unsold deals. This also gives you the power to measure your insurance lead database, and allows you to better find where to spend your hard earned marketing dollars.
6. Use Measurables to Track Lead Performance - Is one insurance lead company working better than the other? Are you getting more inbound requests from Yelp instead of Facebook? Did you drive in a lot of traffic from an insurance resource post on social media? You won’t know unless you use the information you captured for the previous insurance leads to see the outcome. Are your unsold deals spending long amounts of time on the phone? What is your average talk time with an insurance lead? You can’t manage what you don’t measure. Looking at your lead performance and the outcomes of those insurance leads, allows you to better manage your insurance agency. Maybe Sales Rep A is spending an average of 18 minutes on each call, but closes at half the rate of Sales Rep B who only spends 12 minutes on each call. What kind of necessary oversight, training, or lead types does Rep A need to get to Rep B’s status? These are valuable key measurements that give you not only a high level, but also an in-depth examination at your insurance agency and its performance.
7. Have a Follow-Up Campaign for Unsold Leads - If you don’t close an insurance lead, what happens next? Does it just sit in your CRM Database until someone pokes around for more leads? What are your next steps after the insurance lead doesn’t buy, ghosts you, or simply tells you NO? What kind of content are you sending out via email? Are you updating them on insurance industry trends, and helping them find ways to get better coverage at a lower cost? Are you making deposits into your prospects information education funnel? It’s hard to try to withdraw from our prospects (a sale), when we haven’t made a single deposit. Nurture campaigns are a great way to keep your unsold insurance leads engaged. Don’t let them forget that you and your agency exist. Just because you didn’t close them today, doesn’t mean you’re not at the top of their list in six months when they shop car insurance again. You’re not asking them to switch, or even consider switching, you’re simply asking them to think of you as their next best option when the time is right.
We thank you for taking the time to read about effectively managing insurance leads, and we hope you found some valuable resources inside the article. Don’t forget to stop by our blog to learn a few more tips and tricks, and if you are interested in how insurance agents are partnering with Insurance Lead HQ to grow their insurance premium revenues, Click Here to Request a Demo today!