Demystifying Online Leads
by Teresa Kitchens
Copyright © 2008
Insurance Agents are constantly looking for innovative ways to open discussions with new prospects. The online lead frenzy has been taking over the marketplace for the last five years and is getting mixed reviews. Agents have to consider, as a consumer in general, every product is pitched as the saving grace for all of their 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 develop a strategy to make their product work for us.
Lead companies will paint the picture that these leads are 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 also make the claim that buying online leads cuts down on competition because the lead is only sold to a select number of agents. To the uninformed agent these claims can be very misleading and misrepresentative 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. It is your responsibility to ask the important questions like how many national insurance providers are also subscribing to that lead. The 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 like 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. This will help you counter their offer and get in there as a strong resource on which your prospect can rely. Take a different approach to reaching your prospects. A personal agent can be more persistent, available, an insurance educator, client advocate, and provide the personal service that an insurance powerhouse simply can not. 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 up for grabs.
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 prospects. There is good money in these leads with a strong close ratio, but agents require the right tools to compete in this area of the industry. Today's technology provides us with tools like lead management systems that provide the necessary equipment to be competitive. When looking for a Lead Management System key features include automatic importation 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 essential in maintaining a consistent follow up, storing all your leads in one paperless system, and keeping up with your investment. It is time to stop 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 is the co-creator and director of operations for the AgencyIQ System by Net-Lead, LLC. She has a strong background working in the captive market before venturing out to start her own independent agency.
Teresa utilized online leads to build her agency but found too much complexity in the paper methods and in keeping the investment she was making manageable. Out of necessity, she and her business partner started exploring new options. AgencyIQ was born of this fantastic experience. Five years later, Teresa is leading the AgencyIQ team to revolutionize how insurance agents are prospecting.
