The True Value of an Insurance Lead

As and agent, your bottom line is one of the most important performance indicators to your business, but are you considering all the factors?

In the lead business, we often hear a lot about agents return on investment (ROI) or their cost per acquisition (CPA). Though our communications, we discovered something that most agents don’t realize when it comes to calculating ROI; the need to measure renewals. 

As part of ROI, initial commission is often not the only commission is you will receive from that lead. Granted, not every consumer will resign come the following year, but a considerable number will. The question is, how can you maximize the value of a lead on a more consistent basis?

Our recent survey has highlighted a potential answer to this question: Selling multiple products. 80.8% of agents sell multiple products as part of their business, and most of those agents are 8+ years in the business! By selling multiple products, you offer your clients the possibility to be a one stop shop for their insurance needs.

By doing this as part of your business, every lead’s value increases significantly as they go from initially needing health insurance to needing life insurance down the road, or needing medicare insurance but wants to add final expense a few years later.

Longevity and renewals are all in the name of the game when it comes to selling insurance, and the leads are not just worth their initial value, they hold value for years. Think about that next time you are calculating the value of a lead.

There are other ways to market besides electronically. Make sure to use them

Even though e-sales and marketing is a thrill and challenge and can hit massive numbers of people, there is still the tried and true traditional method of marketing – ads, direct mail, snail mail, networking and cold calling. Don’t eschew the old standbys and just e-market. Mix things up and use all methods of marketing. It is a good way to determine what really works the best for you when the comparables start coming in.

There is just one caveat when e-mail marketing, and that is Don’t overdo it. One email too many from an insurance agent is likely to get your emails blocked. You need to remember that the average number of promotional emails an individual receives may run up to 20 such missives a day. That means your email needs to stand out from the crowd and snag a reader’s attention. You don’t want people to scroll on past your emails.

How do you create read-worthy emails? It’s all about effective content. Work to create an actionable subject line — a call to action is best. Use images and different shapes in your mail. Designers recommend rectangles and squares to prompt readers to act. Circles and ovals are for telling brief stories because no one likes reading too much text. Make sure the overall effect is not cluttered, thus making your email look well organized and attractive.

If the science of email marketing is new to you, take the time to research how it works. It can only bring you more success in the long run.

Never forget that marketing is time and budget driven and if you take the time to do it up right, your ROI is bound to justify the investment.

The Secretariat of Insurance Leads

There are 2 reasons why they post odds at the Racetrack:

  1. To assess the likelihood of each horse winning the race
  2. To determine what your potential winnings could be

Amateur bettors might get lucky by picking a longshot because of its creative name (ex. MyROIguy) or the jockey’s pretty colors or maybe the horse “winked” at them in the paddock. And every now and then, those amateurs get lucky and win the race for those very reasons.

For those who would like to make a more educated wager, there are racing programs. This is where you can read more about a horse’s past racing history,  the trainers or jockey standings.

Watch Secretariat’s Historic Belmont Stakes Race Here.
But enough about horse racing, how exactly does this relate to selling insurance?

If you’re an agent, you would like to know the likelihood that you will be able to close your leads.

Amateur agents might get lucky with a cheap, shared lead every now and then, but is hoping to hit on a longshot the right approach for sustained success.

More experienced agents don’t buy leads because they’re cheap, they’re more focused on their ROI .

If there was a Racing Program for Buying Leads, it might look something like this:

Benepath LeadsCompetition
# of Times SoldOnly 1 Agent4 to 10 Times
Lead GenerationGoogle, BingAffiliates
Incentivized TrafficNoYes
Agent BrandingYesNo
Show Clients QuotesYesNo
Benepath Exclusive Leads4 to 1
Affiliates10 to 1
Shared Leads25 to 1
Incentivized100 to 1

Go with the smart money— Exclusive, search generated leads give you the best odds for long term success.

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