Being able to source enough leads to keep the new business pipeline full and new business goals on track can often be a challenge for insurance agencies. Whether this is impacted by the niche a producer specializes in, the type of insurance they sell, or the restrictions of the agency’s geographic location, maintaining a healthy stream of prospects is imperative to the sales process.
When it comes to keeping a full bank of prospects year-round, lead lists are one option available to insurance agencies. Lead lists can be a bit of a gamble so before buying, here are a few things to consider:
Know Your Client Type –
The clients you typically work with and pursue likely have some similar characteristics. At the very least, you can categorize them into Personal Lines or Commercial Lines. Lead lists are often more effective for personal lines than for commercial lines. With personal lines lead lists, you are generally going to get more options and, therefore, more opportunity. Commercial lines lead lists are generally going to be smaller accounts, most likely newer in business. If you are pursuing larger commercial business-like big manufacturing outfits, it’s important to note that accounts of that nature will not generally show up on lead lists.
Understand Exclusivity and Cost –
There are several sources for lead lists, but not all are created equal. Getting a bargain on a list of 5000 possible leads is not necessarily as good as it sounds. In other words, the deal may be too good to be true. Lead lists are often sold to multiple agencies, meaning that even though you have a lot of the necessary details, you will have to compete with another agency.
Obtaining a list that is exclusive or at least semi-exclusive may cost a bit more, but leads are going to be more viable than those bought at a lower price, but mass distributed. If the agency wants to generate revenue with less wheel spinning, spending a little extra on an exclusive list will be a far better route.
Establish A Process for Responding –
Lead lists will serve no purpose if the agency does not have processes to handle them efficiently. When the lead calls or emails the office for more information, prompt response to the inquiry is critical, especially for lead lists sold to multiple agencies. Being the first to respond can make a tremendous difference in determining if the agency can secure the client before the competition arrives.
Setting up automated systems that immediately send a response to the prospect lets them know you have their request can be a game-changer. You are getting back to the prospect when they are thinking about their insurance and reaching them before another agency has a chance.
Review Other Options –
If your ideal client falls outside the area where lead lists are most effective, it’s important to remember that businesses talk to one another. Your best bet on larger commercial clients or high net worth personal lines is going to be referrals. As you build successful relationships within your current book, there is a good chance they gladly recommend your services should a friend, family member, or fellow business owner come looking for insurance agent recommendations.
The need for good leads is a valid concern for agencies and their producers to meet growth goals. Using the tips above, agencies can decide if lead lists are the right route for their organization.
For more insight on this topic, be sure to check out the full episode of The Independent Agent here.
About the Author
Justin Goodman has spent the past 20 years in insurance. He is the co-founder and CEO of Total CSR and co-founder and Managing Director of Project 55. By the age of 29, he was recognized as one of the top five construction insurance experts nationwide by Risk and Insurance Magazine. He also was named to Insurance Business Magazine’s Hot 100 and most recently the 2024 Insurance Journal Agent of the Year. Justin has trained over 50,000 CSR’s, account managers and producers through his work at Total CSR. He has a passion for developing the next generation of insurance professionals. When not with his family, he devotes his free time to speaking engagements and advising agency owners across the country.
