In the world of insurance agencies, there seems to be a never-ending argument between two camps, the cold insurance leads and the warm insurance leads. Which type of lead is better? Maybe, it is time the examine this debate.
Warm leads are prospects who have demonstrated an interest in your agency. In other words, someone has referred your business to others, or your reputation has generated interest. Cold leads, on the other hand, are leads that the agent has to work to get. This is done by direct contact with the chosen prospective leads.
Now, some insurance agents prefer warm leads and others prefer cold leads because each type of lead has its own perceived benefit for the agents. What works for one may not work for another agent, however. The best advice here is that agents have to try out pursuing both types of leads and measure the results. In other words, one type of lead is not necessarily better than the other. Both, cold or warm leads, can be used for great success.
For instance, warm leads are usually referred to your agency by friends, family, previous and current satisfied customers, and anyone who has shown an interest in your product by way of interacting with your agency’s social media, website, newsletters, etc. However, without a good marketing strategy in place, you may find that not many people can or want to access your product online. Furthermore, friends and family tend to run out when you have upsold everyone in your close-knit circle.
Cold leads can prove to be problematic as well. For example, cold leads can prove unsuccessful because they had previously engaged with other agents and refuse to work with you. In some cases however, a cold lead that has not heard from an insurance agent for a long time and may now be interested in your pitch.
As outlined above, there are pluses and minuses to working with both cold and warm leads.
While the debate between which lead is better will likely continue, that is not what is most important here. As an agent, you are in charge of your business. Therefore, as long as you continue to be productive and bring in leads, it will not matter if they were warm or cold. You will not know until you try which technique of obtaining leads is best for you.
Each niche has its own rules and ways it needs to be worked. Find the best solution for you and start using leads to build a solid business base for your insurance agency.