Keeping Lead Providers Honest: Tracking Closing Ratios
Using internet leads has been a legitimate and profitable marketing strategy in the insurance industry. However, it is important while using internet leads to understand some tricks of the trade to keep your lead providers honest.
Finding a lead provider
Where do you find a good, solid lead provider? The answer to this question can be complicated and vastly different depending on your product line and the region in which you do business. There are many options available, including QuoteWizard, NextGen Leads, Hometown Quotes, SmartFinancial, ZipQuote, Benepath, All Web Leads, and EverQuote, to name a few. Do your due diligence and research lead providers, read online reviews, and talk to your peers to help you decide which companies you choose.
A lead can generally cost you $5-$25, depending on specific filter options selected. The more filters you add, the more specific the type of customer you reach, the higher quality the lead you’ll receive (which probably means the more expensive the lead).
How does a lead provider obtain leads?
Lead providers can generate leads in many different ways. It is in your best interest to have leads with high intent for obvious reasons. When you contact a lead, you’re hoping for someone on the other line who actually wants the information you’re providing. They are shopping for insurance and are, thus, looking for a quote.
However, many times the lead has low intent, meaning they have no interest in looking for a new insurance plan. Therefore, it is important to be aware of how your lead providers obtain customer information. For example, if your leads are telling you they never requested a quote, or if they mention winning a prize, you can safely conclude that your lead provider is giving you bad leads.
Lead providers who use incentives or spammy advertising techniques should be contacted right away. A bad lead with false information from a legitimate source will likely be credited back. Use common sense - if you consistently receive bad leads, or your lead provider makes it overly complicated to get refunded for bad leads, then discontinue using that company immediately.
Tracking closing ratios
The best way to know if your lead provider is working for you is to track your closing ratios. Make sure to take information over an extended period so you’re getting an accurate number. Often, agents stop using leads because their ROI shows they are not profitable. But if they had just stuck with those leads for a little longer, they would start to see that internet leads can be a valuable marketing source for their business.
Smart Lead Management Systems can assist in following up with internet leads at more opportune times, and in the long run, the closing ratio begins to increase. Your closing ratio may look abysmal within the first 90 days of using internet leads. But over time, you will start to see a positive ROI with persistence and patience.
To recap you want to:
Do your research to find lead sources that work for your business in your location.
Track your numbers so you have a clear picture over time of your closing ratios.
Keep your lead providers honest so you’ll continue to receive high quality, high intent leads.
