Insurance Agents are constantly looking for new ways to open discussions with more prospects. The online lead frenzy has been taking over the marketplace for the last five years and is getting some mixed reviews. We have to realize though, as a consumer in general, every product is pitched as the saving grace for our all our problems. Online lead companies are no different in their advertising than any other company. It is our job as consumers to test their claims, see through them, and to come out the other side with a way to find the happy middle.
Lead companies will paint the picture that the leads are coming to the agent waiting with baited breath for an insurance quote that will rock their world. As insurance agents soon find out, this is not reality. Lead companies are also portraying that buying online leads cuts down on competition because the lead is only sold to a select number of agents. These are all very misleading to the actual world of how online leads work.
Online leads are submitted by the prospect requesting information online. Most of the time, the prospect will walk away from their computers and get on with their day. In their mind, it is your job to get the quotes to them. Second, leads can be sold to a variety of agents. You may be one of 8, and the only captive agent in your area, but ask the important questions of how many national insurance providers are also subscribing to that lead. These major companies have computer systems that send quotes immediately, a team of call center operators, and electronic auto responders to make contact with prospects. It is important to do your research and find out how many agents of various providers are competing in your area.
These national providers will have systems that send out a quote immediately that is very low and does not include factors of insurance score, credit history or much else. This is a teaser quote to get someone to call or email and give that company a fighting chance for the business. Even if the quote goes up, the prospect was drawn to their customer service portal for that all important "conversation". Make sure you know your competition. Know how they work and know what their goals are, it will help you counter their offer and get in there and be a strong resource for your prospect. Take a different approach to reaching your prospects. A personal agent can be more persistent, available, an insurance educator, a client advocate, and provide the personal service that an insurance powerhouse can't. Some people are tired of canned service and don't want to work with a national powerhouse. Remember that every prospect is different. The close ratio on the national level is 10% and they are happy with those results. They will pursue the business differently and do not deliver the personal service that an individual agent can. Remember that their 10% close ratio leaves 90% of the business still out for the rest of the industry.
Finally, realize that the sales game has changed with online leads. Agents today have to use their prowess in the areas of marketing and connecting with agents when trying to reach these prospects. There is good money in these leads and strong close ratios. But agents have to have the right tools to compete in this area of the industry. Today's technology provides us with tools like a lead management system to help provide us with the necessary equipment to be competitive. Look for automatic importing of leads (stop data entering those leads!), auto responders (remember get there fast, get there often), ability to assign the lead to various producers, ease of setting reminders for follow up and even the ability to keep your quotes and prospect documents in one place. These lead management tools are vital for keeping you consistent with keeping your follow up steady, storing all your leads in one paperless system, and keeping up with your investment. Stop just throwing that $12.00 lead in the trash after 30 days.
Get smart and look at what the powerhouses in insurance are doing. Do you have to be a powerhouse? Absolutely not! Deliver the ease of service, the quick responses, the continuous follow up, AND service and your clients will have the best of both worlds. Your referrals will soar and your business will see success like never before. Utilize these online leads with caution...remember to keep a level perspective, and sell away!
Teresa Kitchens
VP Operations of Net-Lead, LLC, the creators of the AgencyIQ System Teresa is one of the co-founders of the AgencyIQ System and a proud owner of her own insurance agency.
Check out the AgencyIQ System at http://www.agencyiq.net
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