Lead generation: Are you passing or failing?Article added by Mark Chai on March 3, 2014
Mark Chai

Mark Chai

Kansas City, KS

Joined: June 06, 2012

My Company

NexusHQ

Since I entered the insurance industry 11 years ago, I often use Q1 as a time to revisit my recent successes and plan for new opportunities. With each year comes comes an opportunity to implement and test new marketing ideas while replicating the most successful from the previous year. All these strategies and marketing ideas are intended to answer one core question:

How do I get in front of my qualified prospects?

Lead generation is certainly not a new marketing idea. In fact, as Google’s 2012 financial statement highlighted, insurance and financial services was the number one sector for online advertising. With more of your competitors investing in lead generation, outspending your competition isn’t a long-term solution. The key is learning to be more resourceful with your dollars and ultimately maximizing returns.

To illustrate, let’s review the results of two typical marketing campaigns.

Marketing Campaign A:
    Prospects targeted = 2,000

    Leads generated = 15
Marketing Campaign B:
    Prospects targeted = 2,000

    Leads generated = 20
Without any additional data, many would agree that since more leads were generated during Marketing Campaign B, it was more successful. However, this data is incomplete, and marketing organizations and advisors are limited due to three main shortcomings:

1. Traditional agency management systems lack the normalized data points to track prospects and marketing campaigns while linking with premium generated.

2. Generic CRMs are not designed for the insurance industry and don’t effectively manage policies and premiums.

3. Lead generation companies, while providing good data on the numbers of leads generated, aren’t able to track premium generated.

Fortunately, there are a couple of recent developments which enable better data management within the insurance industry:

1. The arrival of new integrated technology platforms designed for marketing organizations, which serve as the CRM, AMS and a link to lead generation.

2. Marketing organization managing lead generation as a value added service for advisor by attracting, capturing and distributing leads for their writing advisors.

By investing in new technology, you can micro-profile each prospect back to the individual marketing campaign and easily track sold insurance policies, premium and revenue. In addition, marketing organizations can more effectively manage placement ratios of distributed leads to determine which advisors should get more who should get less. Keeping in mind these connected data points within an integrated CRM and agency management system, let’s revisit the results of the marketing campaigns:

Marketing Campaign A:
    Prospects targeted = 2,000

    Leads generated = 15

    Marketing expenses = $10,000

    Number of new clients: 10

    Revenue generated: $300,000
Marketing Campaign B:
    Prospects targeted = 2,000

    Leads generated = 20

    Marketing expenses = $10,000

    Number of new clients = 1

    Revenue generated: $12,000
By leveraging data, you can clearly see the true ROI of each marketing campaign and can make better business decisions on where to allocate your marketing investments and how to amplify your sales growth. With an increasingly competitive distribution landscape, its never been more important to data mine your marketing systems.
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