How do you approach using leads? Are you certain that you are using them properly? This article will provide a fascinating explanation of lead management and how to increase sales through an economic approach.
The 80/20 principle
The 80/20 principle is an economic principle that states that 80% of output is due to 20% of input. This principle provides a fascinating perspective on the business world. Vilfredo Pareto, an Italian economist, discovered that 20% of Italy’s land was owned by 20% of its population in the early 20th Century. This amazing discovery was illustrated when he discovered that the distribution of land in Italy is universal. Numerous economic and research studies have been conducted since then. The 80/20 principle has been recognized as applicable to all facets of the business world.
The 80/20 principle is a revolutionary idea that ensures quick conversion of leads into policy buyouts. The 80/20 principle can be applied to leads to sales conversion, according to statistical results. Quality, timeliness, and marketability are the three main aspects of leads and sales.
Quality Leads
Insurance agents consider the quality of leads to be a very important aspect. You can convert more leads to policy buyouts if you are able grab quality leads. Here’s something else. On average, 20% of leads account for 80% of buyouts. What does this all mean? Let’s get to the point. You can expect a conversion rate between 20-30% if you’re able to get high-quality leads. How can we get this conversion rate? Exclusive leads are the key to this success. Although shared leads can be a great way to convert sales, it is important to remember that these leads are often shared by many agents.
Comparing it with other marketing methods for insurance can help you see how effective leads are. Cold calling generates between 2.5 and 5% conversions or approximately 5-10 buyouts for 200 calls. Although no empirical data is available to show the true impact of advertising, cold calling can generate 2.5-5% conversion or roughly 5-10 buyouts on 200 calls. This method will also reduce your profit by a smaller percentage. Although leads are remarkable, relying solely on them will not guarantee your success. It is important to understand that there are other factors, such as timeliness, that are equally important.
Timeliness
The 80/20 principle also applies to how you handle leads in terms of timeframes. You have a better chance of selling a policy to clients if you can check every lead quickly. Simply put, 20% of your time with a client determines 80% of the likelihood that he will purchase a policy from the company. The 20% refers to how you assess the needs of your client and choose the best plan that meets his needs. You must also be prompt in responding to each lead.
Marketability
Marketability is the third aspect agents are fully aware of. You might think that all policies are equally marketable, even though they may look identical. This assumption is not true. Recent research has shown that 20% of your sales are derived from 20% of your product. Although you can determine which 20% are the most successful by looking at your sales statistics, it is impossible to market the right product without enough information about the client. This is where exclusive insurance leads come in. Your exclusive insurance leads include valuable information about your prospect and his needs, making it easier to present and prepare the best policy.
Leads to Sales
Although there’s an extra mile when you apply the 80/20 principle to selling insurance, it is still important to have the right resources to make this work. This requirement can be met by relying only on insurance leads. You will also have a higher conversion rate if you do so. Exclusive insurance leads are an essential marketing tool for selling insurance.