Internet Leads are a valuable tool for Personal Lines Growth, but not for everyone. Read on and learn why you should consider adding them to your marketing toolkit.
What are Internet Leads?
By Internet leads, I mean purchased leads, not leads generated by your online marketing, whether that be through SEO, Email Marketing, Social Media, etc.
There are several companies in the market that sell Internet leads. NetQuote is the granddaddy of them all, but over time more and more competitors have entered the field of play.
Here’s how they work. A customer clicks on a link for a quote. Rarely, are these quoting engines but information gathering tools. In a sense they are click-bait, gathering data that can be distributed to multiple companies and other lead aggregators. Those leads are then sold back out to agents and companies.
To get a sense of how they work and what kind of information they collect, you should run an experiment and try it yourself.
After seeing a ridiculous amount of commercials for the General, Mr. Shaquille Oneal convinced me to go online and get a quote with them. I was pretty sure the General did not write in my state, so I wanted to see what would happen.
I entered all my information, and was told they couldn’t quote me. They mentioned they had other companies who could give me a rate. I accepted, and within minutes, I got an email from an Insurance company providing a quote. Then within 30 minutes, I received a phone call from an agent trying to sell me a policy. I was honest with the agent and explained what I was doing. We talked a couple minutes about his business, and I wished him luck.
Over the next couple months, I received multiple emails and a couple more phone calls from other agents and companies soliciting my business.
Who should use them?
Buying Internet Leads are not for everyone. However, if you’ve never used them, it might be worth a 30 day experiment. Make sure you have the capacity to handle the activity they could generate.
If you are a new agency, without good lead flow, they a great tool to add to your marketing. If you have new producers in your agency, and you are trying to generate activity for them, they work. My experience with agencies that have been successful with them is that they are temporary. Some use them to kickstart production and activity, and others use them seasonally. When other marketing efforts are not bringing opportunities, they can prime the sales pump. They are also good for sales training. It’s easy to use them to help a new producer learn to communicate and sell over the phone. Also it helps them create followup systems for future sales.
8 Tips For Using Internet Leads
1. Don’t be cheap. Be willing to spend as much money as your budget allows. Lead quality is in direct proportion to how much you spend. Cheap leads are usually dead or poor quality customers. The quickest way to find out how much to spend is to determine how much a customer is worth to you. This will give you your maximum amount you want to spend on the lead. For example, let’s say a customer is worth $100 to you. Assume you will close 10% of the leads coming into the agency. The max amount you would spend would be $10 per lead.
2. Target Leads. Choose your demographic as specific as possible. Most companies allow you multiple options for demographic choice, such as zip, age, income, etc. It all depends on your market and what you are looking for. The agent I know that uses them best will only buy home leads. His theory is that if they have a home they have a car, and he plans on cross-selling. This way he is paying for one lead but gets two.
3. Make someone responsible. Someone in the agency needs to own the leads. If not, they fall through the cracks. They get ignored, and not pursued with enthusiasm. Also if you have one person managing and responding to the leads it becomes much easier to track results.
4. Respond Quickly. If there is a golden rule to internet leads, this is it. You must respond quickly, instantaneously, lightning fast, no hesitation, drop everything else. If you can’t do it, don’t buy them. Remember, you aren’t the only one getting the leads. Multiple agents and company call centers are getting the leads. The most responsive wins over the most competitive. If you get in first you have a huge advantage. If you wait too long, the customer could have purchased or become disinterested. These leads could come at anytime including evenings and weekends. You must respond.
5. Sell It. When you call you are not just selling your rate, you are selling yourself. If you are an independent agent, there is a good chance one of your carriers is more competitive than the price the customer has today. The fact they are shopping is a good indication that something is wrong. The advantage the captive writer has is the ability quote the person on the phone and give them a rate on the spot. Only having one company makes this easy.
With comparative raters, an independent can do this as well. You may not be 100% accurate, but no one is in the beginning. Don’t worry about it, do your best. There are reports to be ran and more questions to ask. The goal here is to sell your agency.
Again you are not the only call they are going to get. Use this to your advantage, especially if you responded quickly and are the first to quote.
Somewhere in your call with the customer use a script like this:
“When you entered your info online, it got sent to multiple agents that will probably starting calling you, so be prepared. Here’s what I can do for you. I will do the shopping for you and quote you through X number of companies. When they call, let them know you already had someone do the work for you.”
I learned this from an agent friend. This tactic immediately increased his close rate.
6. Create Loyalty. Congrats! You converted the lead to a customer. Warning! Internet customers typically are a greater danger for leaving you at renewal. You didn’t get them through a relationship. They may not want one. You are a just a transaction for them. You have to change that. These are customers you need to touch a lot during their first renewal. Send thank you notes, birthday cards, holiday cards, etc. Make sure they are getting emails from regularly that first year. Make them feel a part of your agency family. No matter how you do it, whether through calls, mail, email, social media, etc; make sure to touch them multiple times that first year.
7. Follow-Up. You didn’t sell it, but don’t let the lead die. Two things have probably happened. You didn’t reach the customer or didn’t sell it.
Call them 7 times before you give up. Send an email or postcard if you never made contact. If you have their xdate, put them in your followup system to contact before their next renewal.
If you didn’t convert them, do the same. Put them in your followup, and don’t give up until they buy or tell you to leave them alone.
8. Track Results. Like your other marketing activities, you must track it. This is the only way you will know if you are getting your money’s worth. Are you making more than you are spending? Are you losing money on them? Are you breaking even? Do you have one salesperson doing better with them than another? Does one vendor have better quality leads than another? It’s tedious, but you will be much more effective with your marketing time and dollars.
If you’ve used internet leads before, what’s your experience?
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