Top six lead management mistakes to avoid

By The PT Services Group

The PT Services Group

For insurance sales professionals, finding qualified leads and then selling to those leads can be an uphill battle. The most successful insurance professionals will turn to insurance lead generation companies, consult with them and purchase the best leads, and then take that lead through their sales cycle.

While it sounds simple enough, it’s a good idea to reassess the way you purchase, nurture and manage leads because it means so much to your success as an insurance professional. To begin with, ask yourself if you are making any of these major lead management mistakes:

1) Banking on the “one-contact close”

In the insurance industry — and especially in business insurance sales — the one-contact close is a bit like winning the lottery. Sure, there’s a statistical chance it might happen, and you have heard of it happening to other people, but betting your future on the one-contact close is as unrealistic as betting your home on a Lotto ticket. Industry statistics suggest that, on average, it takes between three and seven contacts before a business insurance sale is closed.

2) Mistaking email for a CRM system

Your email address is no substitute for a real customer relationship management system. As much as you try to remember to follow-up and stay at the top of hundreds of customers’ minds, you are guaranteed to fail if you do not have an automated system in place. To make the most of every lead, get a system that will remind you to reach out personally to your prospects and generate the occasional dose of automated contact.

3) Not purchasing qualified leads

If you are going to invest money on leads, you expect quality, and rightfully so. However, too many insurance salespeople waste their cash on “leads” that are little more than a list of names and numbers copied from some business directory that has been sold, and resold, dozens of times in the past. By purchasing qualified leads from a reputable insurance lead generation company, leads will be reviewed on the phone by professionals for accuracy before they are released to you.

Buying insurance sales leads can indeed significantly increase your income, but only if they are real, qualified leads. Before you buy leads from a lead generation company, make sure they have described their lead generation process to you, and that the lead you are paying for is exclusive to you for a set period of time.

4) Failing to nurture a “colder” lead

Too many insurance salespeople only make a half-hearted attempt to nurture their leads and then are surprised when even after months, very few of them pan out. The fact is that leads need to be nurtured. Difficult economic times slow buying decisions, especially in the corporate world. Those decisions will be made eventually, however, and unless you have had the patience to stick around and form a relationship with your lukewarm leads, you lose out to someone else when they become red hot again.

5) Chasing the same leads as everyone else all the time

Yes, the insurance industry is a highly competitive one and there are bound to be plenty of occasions when you and a rival are chasing the same lead. Do not let it become your only strategy. Make the investment in a few exclusive, qualified leads and you can get on with the business of making the sale without having to worry about which of your competition your prospect is meeting with next.

6) Buying leads from a generalist lead generation firm

In order to get the most bang for your buck, only buy qualified leads from an insurance lead generation company that understands and deals with your particular niche. Selling corporate insurance is very different from selling insurance to a small family down the block. The lead generation strategy should be very different. If an insurance lead generation company tells you that they provide leads for both individual and corporate sales, be wary — these “Jack of all trades” brokers tend to be master of none.