The Benefits of Customer Acquisition with Aged Leads (Over “Other” Methods)

March 28, 2018
Customer Acquisition

There are a lot of ways to successfully pursue customer acquisition of insurance clients. My belief is that, with the best aged leads, you will be more successful than with any other method out there. There are so many benefits to aged leads over other systems you may be familiar with. In this post, I’m going to go through some of the most popular “other” systems out there and compare and contrast. In the end, I think you’ll see why I’m such a fan of using aged leads for customer acquisition.

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Sponsorships

There are many reasons to get involved in your local community. It’s good for the soul, and many people also do it to get more exposure for their local business. Insurance agencies often sponsor little league teams, scout jamborees, performing groups, annual festivals, and more. It does serve to get your name out there, and you’ll often have an opportunity to shake hands with your neighbors and hand out business cards.

Yet on the other hand, sponsorships are less effective at finding prospects who are ready to sit down for a presentation and make a purchase. This is not so of aged leads. With aged leads, you will hold in your hand the contact information of someone who is serious enough about buying that they filled out and submitted a form asking for an insurance quote. In this sense, aged leads are much further down the funnel than the local who just shook your hand and took a card.

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Direct Mail

Another popular customer acquisition method in many lines of business is direct mail. It’s a great way to reach out to a large list, and with modern advances, you can actually be quite specific in your targeting demographics. You can reach out to new home buyers, households with a certain income, families with school-age children and more.

However, direct mail also has its downsides. For one, it’s expensive. Postage keeps going up, as does production costs. With a simple postcard, you could save by doing some of the production and mailing yourself, although this is a hassle. Outsourcing of course costs more. And, if you’re going to do direct mail, you really should go for something more eye-catching than a postcard that will be thrown away as soon as it’s received. Refrigerator magnets are better, but cost. By comparison, aged leads are very affordable. Per lead, you will spend well under the price of a bulk mail stamp, when you buy in bulk. Plus those names are yours to re-market to months later for no additional lead cost.

PPC Advertising

One of the most popular ways to reach people online, PPC advertising (that’s pay-per-click advertising) offers customizable prospect targeting, low production costs, a potentially high volume of leads, and you only pay for the leads who click on your ad (hence the name) and not for those who just glance at it.

One benefit here is that these leads have taken the first step to qualify themselves by clicking on your PPC ad. That click could lead them to a customized lead magnet, your web page, etc., where they can ask for a quote. Nonetheless, these leads are still further back in the funnel than your aged leads. Those leads have already started the process of buying insurance. With PPC leads, they’re further back up the funnel. Plus, there’s no guarantee that click will turn into a request for a quote (that takes some more clicking and typing).

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Real-Time Leads

Real-time leads promise huge benefits to insurance sales professionals. But do those promises really pan out? For starters, real-time leads are really expensive. It’s not unheard of for an agent to pay $30 or more for a fresh web lead. Additionally, real-time leads have a surprisingly low conversion rate. This has a lot to do with scale. Large operations can staff a 24/7 call center and respond within the hour to lead inquiries. These are the fresh leads that close, and that sale usually goes to the first agent who gets them on the phone.

Yet for most agents, this game of speed and volume is just unworkable. Only 2-5% of leads will convert in that first week after their query, meaning most leads with come at a high cost without a reward. However, about half of all leads do convert eventually. They just need more lead nurturing. Of those 45-48% of leads that will close after the first week, you’re looking at 90-96% of sales that are in aged leads. And if you are purchasing these as aged leads you are saving a great deal on per-lead cost.

Referrals

Lastly, your customer acquisition efforts are even going to be better spent with aged leads than on referrals from your own clients. How’s that? Let me explain. While it’s true that referrals are a great way to sell insurance and to further build your business, there is a difference in where these two types of customers are in the sales funnel. Once again, aged leads are further along than the alternative.

Your client who refers you to his neighbor, family member, or coworker, may know that that person just bought a new house, new car, or had a new addition to the family. The two of them may have even discussed insurance. And it’s true that the personal connection between the referrer and referree really works in your favor. However, aged leads are at least one step further along, in that they have requested an insurance quote. Aged leads are closer to making a buying decision. True they may also need some lead nurturing, but the intention to buy is usually much stronger.

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Final Thoughts

No matter where you go for customer acquisition, you’ll have to deal with the pros and cons. Many agents are more familiar with these other tried-and-true methods for getting new clients for an insurance business. Yet in many ways, a properly executed aged lead system could work even better for you. To be sure, you will need a dialer, CRM system, and automation tools for nurturing in order to work the kind of volume that will really take your business to the next level. Of course, that is why you’re reading this. You’ve likely tried many of these other tactics for customer acquisition and are looking for something that will really help you grow your business even more. With aged leads, that is something that is not only possible, but a reality for thousands of successful insurance agents.

Reach more customers today with a fresh supply of high-quality aged leads from The Aged Lead Store. You’ll find thousands of sortable aged leads, ready to boost your sales, whether your business is auto, life, health, Medicare supplement or homeowners insurance, annuities, auto warranty coverage, mortgage refinance, or solar installation.

About Troy Wilson