Download Insurance Agents State of The Union

Insurance Agents State of The Union
Admin, Troy Wilson
Attribution Required – Next Wave Marketing Strategies – 2012
http://nextwavemarketingstrategies.com
Reproduction expressly prohibited
Table of Contents
Introduction
Insurance Agents State of The Union
5 Part Series
Part 1: 11 Ways Insurance Agents Are Prospecting Leads
Part 2: How Agents Are Buying Leads
Part 3: 10 Things That Matter Most When Buying Insurance Leads
Part 4: Why Insurance Agents Hate Most Internet Leads
Part 5: 10 Technologies Insurance Agents Love
Bonus
Credits
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Introduction
Next Wave Marketing Strategies has been committed to improving Insurance agents’ lead buying experience for
over the past 10 years. Each year AgedLeadStore.com surveys hundreds of agents to better understand pain points
and successes, when using internet leads. This year we decided to publish the survey results and provide you with
this free eBook. This five chapter e-book is full of data and sales methods insurance agents are using to build high
revenue generating insurance businesses.
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Part 1: 11 Ways Insurance Agents Are Prospecting Leads
Finding good insurance leads during times of economic uncertainty can be difficult. Perhaps you, like so many other agents, are struggling
to find new prospects to boost your sales. This article looks at 11 methods agents like you have found helpful.
1. Referrals from Current Customers
This is easily one of the most popular methods used to find prospects. In fact, about 25 percent of insurance agents say that they rely
solely on customer referrals. If you’re one of these 25 percent, you may want to continue reading and identify some other methods you
can use to find potential clients. After all, you know what they say about putting all of your eggs in one basket.
2. Visit Prospect Personally As a First Contact
Many agents these days are putting the phones away and actually dropping in on potential buyers. If you can develop some knock-out
sales materials and a quick elevator-style presentation about how you can solve the prospect’s problems, you may walk away with a sale –
or at least an invitation to return.
3. Cold Call
Cold calling has always been one of the most popular ways to reach out to potential customers, so it isn’t surprising to find it on this list.
While few agents really enjoy cold calling, most will admit that it can be quite profitable.
4. Recommendations from Agents Who Sell Other Products
This method is why it’s important to attend networking events and get to know agents who sell all kinds of products. You want your name
to be the first thing that pops into an agent’s mind when he or she can’t meet a prospect’s needs.
5. Email Marketing
Email marketing can be a fast, painless way to contact your leads and to follow up with customer relationship management.
6. Real-Time Internet Leads
Responding to leads in real time can really keep you on your toes. The good news is that if you’re able to follow through with these leads in
a timely manner, you will boost your conversions. The bad news is that many real-time leads slip through the cracks and get no contact
whatsoever.
7. U.S. Postal Mailings
Sales mailings used to be scorned as “junk mail” and tossed aside without as much as a second glance. Now, because more companies are
marketing through email, texts, and telephone, a piece of direct mail is something of a novelty. Your potential customers may read it out of
curiosity, and if your copy is strong, you may well make a conversion.
8. Buying Lists for Mailings
Some companies sell lists of contact information they have obtained in one way or another. The drawback of these lists is that, in many
cases, the customer hasn’t asked to be placed on this list and doesn’t welcome contact.
9. Referrals from Agents in Other States
This method of obtaining insurance leads again highlights the importance of networking, both locally and globally. You can often use social
media venues such as Facebook and Twitter to get to know agents in other states and to make it clear that you are pleased to receive
referrals from them and that you will return the favor.
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10. Telemarketed Leads
Telemarketed leads have already been contacted by phone and have expressed an interest in the products you are selling. These leads
require fairly quick follow-up so that they don’t lost interest or find another provider.
11. Aged Internet Leads
Aged Internet leads are the leads that somehow slipped through the cracks and never received follow up. Many never even received an
initial call. Opinions about the value of these leads are decidedly mixed in the insurance community. 64.5 percent of agents say they rarely
or never use such leads, while 8.6 percent admit to using them most of the time or all of the time. About 25 percent of agents say they buy
and follow up with used leads some of the time.
These, then are the methods agents are using to find and contact insurance leads. If you aren’t already using all of them, try a couple of
new ones and see if they help your conversion rate.
Many agents find prospects to have a harder time slamming door on them than hanging up the phone and that they have a much better
chance in person.
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Part 2: How Agents Are Buying Leads
One way for an insurance agent to find prospects to contact is to buy leads from a lead generation company. These companies generate
and sell leads in several different ways:
Telemarketing Leads
Telemarketing insurance leads are generated through call center campaigns. The call center cold calls potential prospects and asks about
their insurance needs. Those that express unmet needs or who say they would like to discuss insurance options with an agent are sold to
various insurance companies. The advantage of telemarketing leads is that the generation company takes care of the cold calling so that
the insurance agent doesn’t have to waste his or her time calling prospects that are not interested in or do not qualify for the product the
agent is selling.
Internet Leads
Lead generation companies frequently put up websites with basic information about insurance options. The people who visit the page are
encouraged to submit their contact information so that an agent can follow up with a free quote and additional advice about the
prospect’s unique insurance needs. Internet leads are valuable because they can be passed along to agents in real time. This means an
agent may be able to follow up only a few minutes after the prospect expresses interest. The problem with Internet leads is that a prospect
may request information from several different companies, so there is no guarantee that a lead will be exclusive.
Aged Leads
Aged insurance leads are Intenet insurance quote requests from days to months ago typically that make for a great way to let agents
affordably reach out to prospects that may have fallen through the cracks and still be looking to buy insurance. A lot of agencies like to
have new agents call on aged leads as they make for a very cost effective way to train new hires.
How Many Agents Buy Insurance Leads?
Not all agents buy leads. In fact, in a recent poll 28 percent of agents said that they never purchased leads, finding prospects in other ways
such as referrals and cold calling. Sixty percent of agents said that they purchased leads once in a while or some of the time as a way to
augment other methods of lead prospecting. Of the group surveyed, only 12 percent of agents admitted to purchasing leads every day.
These statistics mean that over 70 percent of agents use purchased leads at least occasionally, so it is an option that insurance agents
should be aware of and consider using if other sources of leads dry up.
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Part 3: 10 Things That Matter Most When Buying Insurance Leads
Recent surveys of insurance agents have found that more than 70 percent purchase leads occasionally or some of the time. An additional
12 percent purchase leads every day. What makes the difference between a good lead and a bad lead? In this article, agents provide the 10
factors that matter most to them when they purchase insurance leads.
1. Contact-ability
The lead generation company must provide as much contact information as possible. Although one type of contact information, such as an
email address, is all right, most agents prefer to have multiple ways to contact a prospect such as email, phone, cell phone, and direct mail.
2. Prospect Interested in Product
If you’re selling Medicare supplement insurance, the last thing you need is a prospect list of healthy 20-somethings. The lead generation
company has got to be able to match their leads with your products.
3. Prospect Information is Accurate and Complete
Accurate and complete information can help you contact clients as swiftly as possible with ideas that meet their unique needs.
4. Number of Times Shared
Some agents prefer shared leads because they are less expensive than so-called exclusive leads. If you are purchasing shared leads, ask
the seller how many times the leads have been shared and with what types of businesses. Purchasing leads that have already made the
rounds extensively in your niche or geographic location might not be a good use of your money.
5. Customer Service
You will save yourself a lot of headaches if you select a lead generation company that is be friendly, reliable, knowledgeable, and quick to
help resolve any problems or disputes.
6. Speed of Delivery
You’ve probably heard agents refer to the “golden hour.” This means that the faster they get the referral and follow up with the prospect,
the more likely they are to make a sale. For that reason, real-time leads, which are delivered as soon as they come in, are worth more than
leads that are delivered at the end of each day or each week.
7. Average Cost per Acquisition
Check out the prices of several lead generation companies. Although selecting the cheapest one isn’t always your best strategy – you do get
what you pay for – you also want to avoid any companies that charge significantly higher rates for the same services.
8. Prospect’s Readiness to Buy
Prospects are most ready to buy immediately after they’ve requested a sales call or a free quotation. If you’ve catch them during this time,
your sales conversion rate will be solid. With every hour that passes between the prospect’s request and your response, the likelihood of
making a sale decreases.
9. Filters
Filters allow you to request certain types of insurance leads. Some of the most common filters include age, insurability, geographic
location, and types of insurance being sought. A lead generation company should provide several filtering options so that you will get your
ideal prospects.
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10. Quantity
If you live in a small, rural area and you’re not interested in expanding your reach, the lead generation company may not be able to locate
enough prospects in your area to justify spending your money. in this example, you’ll probably get more leads through referral, local
advertising, or word of mouth.
Buying insurance leads can be a quick way to get prospects. Before you take out your checkbook, however, make sure to talk with the lead
generation company about these 10 factors and make sure the provider you’re selecting can meet the needs of your sales agents.
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Part 4: Why Insurance Agents Hate Most Internet Leads
Recent surveys show that more than 50 percent of insurance agents use leads at least one in a while, and about 12 percent of agents use
them every day. This doesn’t necessarily mean, though, that the agents are satisfied with the leads they receive. This article looks at some
of the reasons why Internet insurance leads, though popular, disappoint their buyers and fail to convert.
No Guarantees of Exclusivity
Over 70 percent of agents complain that their exclusive leads were not exclusive at all. Lead generation companies generally offer
exclusive leads, and they follow the rules, not selling a lead more than once. The problem is that Internet leads are identified when a
prospect comes across the company’s website and fills out a brief online form requesting a consultation with an agent and a free quote.
This means a prospect may complete contact forms on the websites of several different lead generation companies. Even if each company
only sells the lead once, the result is lead shared by several agents.
Overpricing
A real-time, “exclusive” lead can cost $20 or more per lead. In other words, if you order 100 leads from a company, you may find yourself
paying several hundred to several thousand dollars. If close ratios were excellent, the leads might be well worth the money, but as you will
see, most agents are not satisfied with the close ratios on Internet insurance leads. This makes lead buying a risky proposition, and is a
turn-off for more than 60 percent of agents.
Difficulty Reaching Prospects
There is little more frustrating than paying dearly for a lead only to learn that all the contact information provided by the lead generation
company is dated or incorrect. Usually, if you can prove the information is false, the lead generation company will give you a credit for the
bad lead. Sometimes, though, the information is correct and leads simply choose not to answer your phone calls or emails, either because
they have changed their mind about wanting your product or because they have found another insurance agency to work with. More than
50 percent of agents cite this problem.
Downward Trend
At least half of all insurance agents complain that the leads they buy from lead generation companies are getting worse instead of better.
This perceived trend makes agents less likely to buy Internet insurance leads.
Low Closing Rates
More than 50 percent of agents describe their close rates on Internet leads as “terrible” or “not so good.” Agents who have trouble closing
Internet leads aren’t likely to buy them again, preferring methods such as referrals from other agents or current clients which offer better
rates.
In the end, the majority of agents report being disappointed in some way by their Internet leads. Perhaps it is time for lead generation
companies to listen to this feedback and look for ways to make buying Internet leads more attractive and reliable.
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Part 5: 10 Technologies Insurance Agents Love
As little as 25 years ago, insurance agents had to keep track of client interactions with pen and paper. Finding the answers to a client’s
questions could take hours, and it was easy to let prospects slip through the cracks without any follow up. It’s little wonder, then, that
insurance agents today appreciate all the new forms of technology available to help them manage leads and customer relationships, find
quotes quickly, and provide an online space where customers and prospects can come with questions and concerns. Of all the
technologies available, insurance agents have chosen the following ten as their favorites:
1. Web Sites
Statistics show that 58 percent of insurance agents have their own websites. If you use a professional designer and copywriter to get a
website going, the upfront costs may seem excessive, but once your website is launched, the cost of maintaining it is usually minimal.
Better yet, having a website means that customers and prospects will always know where to find you. Monitor your website and respond
to emails and other communications promptly to build trust among your insurance leads.
2. iPhone Apps
You can use iPhone apps to make calls, send emails, take payments, look up quotes, manage communications, and do just about anything
else you could do on a computer. Since your iPhone is usually with you no matter where you go, you will always be in a position to help
clients.
3. Customer Relationship Management Software
The quickest way to lose a customer to another provider is to make him or her feel ignored. Customer relationship management, or CRM,
software allows you to program regular contacts with your clients. These contacts can take the form of email, telephone calls, online
surveys, or regular newsletters – almost anything will do as long as you stay in touch.
4. Quote Engines for Life Insurance
Some 34 percent of agents use quote engines to provide customers with quick quotes on different types of life insurance packages.
5. Quote Engines for Health Insurance
These quote engines are also popular among 1/3 of agents.
6. Lead Management Systems
Much like customer relationship management tools, these systems are set up to make sure that insurance leads receive regular contact.
Many agents get busy and forget to follow up with leads, even though research has shown that it can take up to seven contacts to make an
insurance sale. Lead management systems, used by about 30 percent of insurance agents, prevent viable leads from being misplaced and
ignored.
7. Real Time Leads from Vendor
Although real-time leads are expensive, if they receive follow up within an hour, they are the most likely to convert to sales.
8. Email Marketing Service
Using an email marketing service saves insurance agents valuable time and also takes the guess work out of lead follow up.
9. Auto-Dialer
Auto-dialers dial pre-programmed numbers and alert the insurance agent when they reach a live person. About 20 percent of insurance
agents use auto-dialers. Their benefit is that they can save the insurance agent valuable time making calls that go unanswered or that
reach a machine. If there is a deficit, it is that many people don’t like to answer the phone to find them on the line with a machine and will
hang up before the agent can get on the line.
10. Aged Leads
A little over 15 percent of agents buy aged leads which are just real time Internet leads that are now a few weeks or months old. Aged
leads are inexpensive, often costing only a few pennies each. For that reason, many agencies use them to train new agents or to test-
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market a new sales pitch. The problem with aged leads is that they have a relatively low conversion rate but advances in prospecting
technologies have allowed agents the ability to overcome this and win the numbers game in a big way.
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Bonus
Links:
http://www.nextwavemarketingstrategies.com/health-insurance-leads/ (for all health insurance words)
http://www.nextwavemarketingstrategies.com/life-insurance-leads/ (for all life insurance leads)
https://www.facebook.com/AgedLeads (for all aged leads words)
http://www.agedleadstore.com/ internet leads
http://www.pcmag.com/article2/0,2817,2391521,00.asp (iPhone apps)
http://www.leadmailbox.com/ (CRM)
http://hellosuite.com/ (e-mail marketing)
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Credits
Mark S http://www.linkedin.com/in/seghers
Troy Wilson http://www.linkedin.com/in/nextwavetroy
Nick Martini http://www.linkedin.com/in/nicholasmartini28
Mike Ianni http://www.linkedin.com/pub/michael-ianni/27/4b3/14a
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