Many agents want to know more about an aged leads system before they buy — and I could hardly blame them. Compared to cold calling fresh auto insurance leads, an aged leads sales process requires not only a lead supply but a proper system for working those leads.
Today, I’m going to go over why you don’t want to separate aged leads from their system, how dialers and CRMs affect your closing percentage, and how to get the most from aged auto leads.
How Aged Leads Differ from Fresh Leads
For those new to aged leads, it may seem strange to think of a lead supply being so closely tied to aged leads tools and processes.
With fresh leads, you have more options for how you go about working your leads. The right equipment may improve your sales, but you probably know plenty of agents that do fine without. Similarly, developing a reliable process for working fresh leads will boost your business, but different agents may end up with good results with different internal processes.
The aged lead reality is quite different. There are several reasons for this, but one overlooked reason is the leads themselves. The most motivated and diligent auto leads are generally not aged leads. Folks who needed to start coverage for a new car or resume coverage in order to renew their DMV registration have likely moved on.
Aged leads tend to be recent carrier switchers, last-minute buyers, or tire kickers. You have to do some digging to find the warm leads — and when you find those, you’ll have to nurture them properly to close a sale.
How a Dialer and CRM Change Everything
Without an aged leads system, this is just too time-consuming and tedious to be worth it. These aged leads require a volume strategy, and to work a higher volume of leads, you need a dialer and a CRM. It really changes everything.
But with such low close rates and high volume, “Why bother?”, you might ask. After all, the high volume demands of a successful aged lead system seem completely at odds with current business mantras, like “Do more with less.” But the advantage of aged leads comes down to their return on investment (ROI). Exclusive leads can cost $25+ per lead. Aged leads can be had for less than $1 per lead. When you crunch these numbers, you come out ahead with aged leads.
Here are some other key facts to keep in mind:
- Closing rates for aged auto leads can vary, of course, but typically it is around 1–2% in the near term. Contact rates will generally be much higher, around 20–30%. And, with a CRM and a savvy lead nurturing process, you may win further sales from some of those leads down the line.
- Also note that the close ratio of a given batch of aged leads does not change when you use a dialer or a CRM. What does change is how quickly you can work those leads and move on to another batch, and another. The faster this happens, the better.
- However, variance is something to keep in mind. Sales rates naturally vary for successive batches of leads, some great, some not so much. I generally recommend an initial investment of 2,000 leads to handle variance.
- A dialer and CRM will be a must to deal with volume, variance, and to quickly work a batch of leads so you can move on to the next. But these tools don’t have to break the bank. Cloud-based dialer and CRM software systems are available at reasonable monthly rates for small agencies just starting out. As you scale up your operation, you’ll naturally invest more in these systems.
How to Get the Most from Aged Leads
Aged leads offer an unbeatable ROI compared to fresh exclusive leads. The hardest adjustment for seasoned agents is the process of working the leads. But there are ways to get even more out of your aged lead investment.
One strategy that works well with aged auto leads is targeting renewals with x-date leads. These are leads that are 30 to 60 days out from the six-month and one-year dates of their initial query. Just the right time to consider switching carriers. And the age of these leads makes them some of the most affordable.
Another tactic is to cross-sell your aged auto leads with multi-car policies, and home or life insurance coverage. This gives you lots of options and a bunch of x-dates to feed into your CRM to work in the next three to six months.
Lastly, developing a strong, repeatable system for working your aged leads is a must. A lead supply, dialer, and CRM will get you started, but the real magic happens when all your tools and skills are put to use in a proper aged leads workflow.
Ready to get started with aged auto insurance leads? Fill your pipeline with a fresh supply of high-quality 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.
