The Worst Thing An Agent Can Do
We have a major problem in the insurance industry.
It’s a problem that keeps most agents stunted in their agency growth.
The problem is “leads”.
“Nick, we are looking for more leads for our team.”
Sure, it would make sense that in order to grow your insurance agency, an insurance agent would need more sales opportunities.
The belief that more leads will cure an agency’s growth problem is misguided and wrong.
In this article I will explain why.
After speaking with thousands of insurance agents from around the country, I have observed that the majority of insurance agents do not suffer from a lead problem. The problems they face are on their backend systems and processes.
Shining a Light on the Cracks
The best use case for a bulk supply of leads is allowing it to shine a light on a broken sales system.
More leads will quickly expose an agency’s shortfalls when it comes to tracking, sales, and follow up.
If an agency owner is wise and humble, they will understand that the quality of the lead is not nearly as important as the process and experience that lead goes through during the sales process. They will not make an excuse on why the leads are no good, instead, they will always point the finger at themselves and correct their process.
Leads can be a great resource for exposing the weaknesses in an agency’s sales process.
Don’t Chase Fads
It’s likely you’ve seen advertisements promoting a program or a course. These solicitations will sell you on the idea of “leads, leads, leads” from places like Facebook.
As a course creator myself, I know this angle all too well. But if leads are the only attraction point for you, then the battle is only half won. It is why on enrollment calls, I often ask prospective students, “tell me about your sales process”. If they cannot articulate a proven process that can adequately handle more lead volume, then I cut the call off early and inform them that they should not join any program, including mine.
The fact is, you can use advertising platforms like Google and Facebook to create more leads. But in my experience after generating hundreds of thousands of leads, it doesn’t matter how good the lead quality is. If the sales process from phone, to CRM is broken, then you will have wasted precious time and money.
Your Acre of Diamonds
Most agents have all the leads they could ever need. They do not come from Facebook, Google, referral partners, or anyone else.
These leads are staring at them every single day inside of their agency CRM. Most agents would be shocked to find that the average household policy count for most clients is below two.
Very few agents know this for a fact, so instead of relying on the hard data as truth, they assume. They want to believe they have packaged all of their clients’ insurance needs in their agency. But if we’re being practical and honest, we know that is not the case.
If you do not have an automatic process for communicating with existing clients the need to package more business with your agency, then you are leaving money on the table.
Every Fortune 500 company knows that the best source of new business is to sell more to existing clients. Once a buyer, always a buyer.
Spend more time mining your acre of diamonds and you’ll rarely ever need to acquire “more leads”
Using a CRM To Make More Money
The insurance industry has come a long way in the last few years. Now agents have resources to automatically respond and nurture their leads.
Your CRM should automatically respond to your leads and your existing clients should hear from you automatically at renewal and when there are cross-selling opportunities.
A high quality CRM will track all of your client behaviors and allow you to respond in real time via text or email. It will also allow you to reactivate any “dead leads” from the past.
It’s important that if you have any sort of lead volume you are using your CRM to track X-dates and reasons why a policy wasn’t sold. This data will help you improve your sales process and overcome objections.
It is in the best interest of your agency growth that you invest more thought into your follow up sales process.
This will allow you to have higher connection rates and communication with your leads. It will allow you to develop better bonds and relationships with your clients, and in the end, you can have a more profitable agency.
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