Insurance companies pay a lot of money for real-time leads, but is purchasing these leads really the most effective choice for spending marketing dollars? Some consultants say it is not, for the following reasons:
1. Real-Time Leads Are Expensive
Brand new, exclusive leads are the most expensive type of insurance lead you can purchase. You’ll get a better price if the lead is 24 to 36 hours old, and you’ll get the best price of all if you purchase leads that are more than 30 days old. Older leads often end up being less time consuming and easier to convert than newer leads since prospecting technologies such as dialers and email softwares can now do most of the heavy lifting. You might want to focus the energy of your sales department on following up with aged leads.
The industry trend has been toward real time insurance lead companies selling the leads more and more times for less and less money each time so while it is true that prices have fallen a lot, I am afraid the value of a real time lead may have fallen even more. You will often find what these prospects need is a few days or weeks to breathe and then they might be more receptive to what you have to offer. There is no such thing as a bad lead, only a bad price and I think aged leads are just more fairly priced.
2. Even the Exclusive Leads Aren’t Really Exclusive
Even if the lead generation company with which you do business is reputable and sells each lead only once, the lead still may be oversold by the vendor they got it from. If the lead has requested information from one site, chances are good that he or she has requested information and/or free quotes from other sites as well. This means that unless your sales team is the first to respond, you will get lost in the pack of companies responding to the “exclusive” lead.
3. Real-Time Leads Can Be Time Wasters
Time is the most valuable resource your sales team has. If members of your team are constantly being distracted to respond to brand new leads who may or may not even qualify for the product you are offering, they lose time that might have been spent on other activities with higher conversion rates, such as nurturing qualified leads or making contact with customers who are due to renew their policies.
4. New Leads Slip Through the Cracks
You spend a lot of your marketing budget to get leads in real time, but what happens to them after you get them? Studies suggest that as many as 60% of these leads do not receive a follow-up phone call within 24 hours after requesting information. This means that you might as well have saved your money by buying leads that have aged between 24 and 36 hours.
Buying leads in real time sounds intuitively appealing, but there are far better and more cost-effective ways to spend your money when it comes to prospecting.