The Lifeblood of Insurance Sales: The Importance of Leads
As a sales professional in the insurance industry, it’s widely understood that “we live or die by leads.” A lead represents someone who has shown interest in your services through direct mail, digital marketing, referrals, or seminars. However, not every lead guarantees a sale, and it’s important to focus on both your approach and lead volume to maintain a thriving sales funnel. Generating quality insurance leads is essential because it ensures that you attract not just a high volume of prospects, but those who are more likely to convert into customers.
No Lead is Ever a Guaranteed Sale
While the goal is to close every lead, the reality is that not all leads will convert into sales. Diversifying where your leads come from will help you maximize your lead volume to increase your chances of success. Remember, sales are a numbers game.
Reliable Metrics to Guide Your Efforts
By tracking your sales data, especially the origin of your leads, you can better predict where your next sale will come from. Knowing your close rates by lead source and industry-standard close rates can guide where to focus your time and budget.
Cost-Effective Lead Generation: An Example
Facebook Ad Campaign Leads:
- $22 per lead
- 20 leads = $440
- 15% conversion rate = $146 cost per acquisition
Direct Mail Campaign Leads:
- $1100 for 2000 mail drop
- 1% return rate = 20 leads
- 30% conversion rate = $183 cost per acquisition
Understanding this math helps evaluate the true cost of doing business and whether you need to adjust your lead generation strategy.
Diversifying Lead Sources and Understanding the Buyer’s Journey
To keep your sales pipeline full, it’s essential to have a variety of lead sources. Whether through direct mail, referrals, or digital campaigns, a diversified approach ensures a steady stream of prospects.
Re-engage Leads by Revisiting Their Buyer’s Journey
This is a great reminder to focus on your current book of leads. Perhaps your lead was not ready to buy when you generated it. By looking back at your leads, you can re-insert yourself into their buyer’s journey and become their trusted advisor.
Leads Are Just the Beginning
Your best lead source is the one that works for you, ideally mixing free and paid options that balance out your cost of acquisition. By homing in on your sales process, and scripts, and understanding the buyer’s journey, you can create more control over your sales outcomes.
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