The goal of any digital marketing campaign is to generate leads. In online marketing for insurance agents, quality leads are the key to business growth. Quality leads improve conversion rates, or the concept of turning website visitors into paying customers. Online lead generation consists of many inter-related components, and a failure in any one of these components can negatively impact business prospects. In this guide, we’ll explore why so many insurance agencies are getting bad leads, then we’ll present proven strategies to bring in quality, conversion-ready leads.
Quality Over Quantity in Marketing Leads
Too often, digital marketing professionals focus on the quantity of leads they generate, expecting this onslaught of leads to translate into sales. The reasoning behind this phenomenon is based on the law of averages; the more leads generated, the more potential for sales. Unfortunately, in the real world of marketing, this focus on lead quantity can result in sky-high expenses with little to show for them. For every minute wasted on a lead that has little chance of converting, digital marketers are wasting money – effectively throwing away financial resources.
Quality leads, on the other hand, may take a bit more effort up front by targeting the types of people who are more likely to make purchases with a given insurance agency. This so-called “smart” lead generation is both cost-effective and efficient, saving valuable resources for other aspects of the marketing campaign. It is in the best interest of marketers and their clients to refocus on lead quality; doing so can create powerful new business opportunities.
The Sources of Bad Leads
There are many factors that go into lead generation. Some of these factors can produce large numbers of potential leads, but may not bring in the types of people likely to make purchases with a given firm. There are three specific areas that can result in bad leads:
- Websites that do not provide the needed information to convert site visitors – When a website is vague or doesn’t provide crucial details about a business and its products or services, those visitors may turn to competitors to make purchases. Marketers need to evaluate site bounce rates and site retention figures to determine what problems exist; high bounce rates can mean that visitors simply aren’t getting the information they are looking for.
- The “shotgun approach” to lead generation – In numerous cases, digital marketers cast a very wide net in the hopes of bringing in site visitors. These marketers have the misguided belief that the more website traffic, the higher potential for sales. The reality is that not everyone can be sold to; and every lead generated in this way represents wasted opportunities and wasted resources. Smart marketers know that targeting specific audiences is key to success in any campaign. By identifying the audiences that are looking for a given product or service, then delivering the details they need to make purchasing decisions, they can improve conversion rates substantially.
- Overly-aggressive marketing tactics – Professional marketers know that potential customers can be turned off by aggressive sales practices. Cold-calling is only one of many tactics employed by marketers, but this has been shown to be less effective than other methods. In fact, building relationships – sometimes referred to as “high touch” lead generation – is vastly more effective. Marketers need to ease up on the aggressive approach and redouble their efforts to be patient, responsive, and nurturing when working with potential leads.
Improving Business with Quality Leads
Online marketing for insurance agents is a complex arena, filled with challenges and triumphs. The best digital marketers know that bringing in quality leads is the best way to leverage resources in both time and money. How does one get better leads – the types of leads that are more likely to convert? There is no one easy answer, but there are several tips that can improve the quality of leads being generated.
The first tip is identifying which people are most likely to make purchases. Digital marketers have access to streams of data that can pinpoint specific audiences based on demographics, regional preferences, and income levels. In online marketing for insurance agents, this can mean targeting first-time home buyers or those who collect vintage automobiles, just to name a few of the many potential pools of customers. By leveraging this data, focus can be applied to the audiences that are in the market for a specific product or service, resulting in cost-effective lead generation without the wasted resources of dealing with bad leads.
Next, it is critical that marketers take the time and the effort to nurture relationships with leads. Heavy-handed sales tactics have no place in the modern marketplace; it is important to reward leads with the information they need by cultivating relationships. Anticipate questions, then develop resources to answer those questions. Provide all the details they need to make purchasing decisions, then give them the tools needed to reach out, such as contact telephone numbers or online contact forms.
Finally, ensure that marketing and sales teams are on the same page. These two teams must work in a collaborative way to maximize quality lead generation, and each team may have valuable insights into what is working and what can be improved. Sales teams should share their initiatives with marketers, and marketers need to be aware of sales practices. Improving understanding between the teams translates into quality leads that produce impressive sales figures.
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