Sunday, May 22, 2016

Insurance Lead Generation in a Changing Marketplace

One of the most critical activities for an insurance producer is

"filling the sales pipeline" with prospects to whom you can discuss

their insurance program. Did you notice that I didn't say "to whom

you can sell insurance?" You are in a unique position to positively

impact lives. You know what can happen when people are not properly

insured, typically your prospects don't!

Lead generation has changed dramatically over the past ten years.

Here are a few areas that used to be the mainstay of producers that

may not even be worth your time anymore:

Lead purchase. This information has become extremely expensive for

what you now get. The quality of the information generally available

has eroded to the point that I really cannot recommend it.

Direct mail. The effectiveness of direct mail is limited unless you

can tailor information specifically to a prospect or have a

compelling "call to action" proposal. Oversized postcards tend to get

more attention than letters and you will need to mail to the same

prospect multiple times to gain any traction.

Cold calling. This is still somewhat effective for commercial

prospects but a complete waste of time for personal lines accounts.

You also need to be careful complying with "do not call"

requirements.

In this information age where people like to do their own research

online, it can be much more compelling to try these tactics:

Create an online presence. What will people find if they research

you? Write articles, speak at local rotary clubs or Homeowner

Associations to develop a reputation as an "expert."

Use your consulting skills. Most of us have degrees or expertise in

areas other than insurance. Provide tips to prospects that work in

businesses where you have knowledge. Prospects will be very receptive

to getting good information and would like to do business with

someone who can "speak their language."

Offer value added services. For example, everyone should have a

"personal inventory" in case the unthinkable happens and everything

is lost, but very few ever do it. Even those of us in the insurance

business rarely get around to it. Offer to make a video walking

around a clients' house opening drawers and closets. This tool will

allow them to recover much more financially than if they did not have

it. Offer to keep it for them in case they do not have a safe deposit

box or fire-proof safe.

Make a list of prospects. Pick prospects you would like to do

business with and learn about them through their website. Walk into

their business and bring them useful information they will want to

keep with your contact information included.

Pay attention to your current clients. Strong retention is the key to

growing your business. If your retention of clients is only 80%, you

are churning your entire book every 5 years as you are losing 20% per

year! Contact clients especially spheres of influence or clients that

generate a predetermined level of revenue at least 4-6 times per

year. Send them for example surveys regarding your service to find

out if their expectations are being met. If they like you and trust

you, they will refer others to you.

Producers bring so much value to the equation. Insurance is

complicated, has its own language and honestly, prospects' insurance

programs that I see on a regular basis are typically poorly thought

out. The goal should not be to find your prospect "cheaper"

insurance. The goal is to properly insure people to protect their

assets and their particular situation. If you choose to do the right

thing for all parties, you can be extremely successful and feel

really good about the career you have chosen.

Sharon Graeter, CPCU is Co-Founder and Director of Development for

West Connect Insurance Solutions. She has 30+ years experience in

Property/ Casualty Sales Management. If you have interest in a career

that allows you to enhance the lives of your clients while providing

you with a great lifestyle and are located in California, contact our

website at http://www.westconnectalliance.com

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