Sales people have many methods of customer acquisition for increasing sales. While all methods produce results in varying degrees, using aged leads is one of the most effective methods and gives a great value for money.
Aged leads are available at very low rates only because they are not fresh – maybe a few days have passed since the prospect had requested the quote or filled the required form. If the lead was not sold immediately, it does not mean the prospect’s requirement got fulfilled. He or she may be still looking for information or quotes.
Here is a comparison of aged leads with the traditional methods sales people use to acquire customers.
There is a huge demand for real-time leads in the insurance industry. Agents tend to give a lot of value to these types of leads because they reach the agents almost as soon as the prospect has filled the form. Every agent tries to contact the prospect which he got through real-time lead generation immediately – but this is not possible practically. A small fraction of the all the leads received actually reach a sale within the week. A sizable number of the rest of the leads take longer to decide during which many agents drop them and move on to newer leads. With a little bit of nurturing these leads can give a closed deal. Aged leads turn out to be very cheap especially when bought in bulk – so, it gives great return of investment as compared to expensive real-time leads whose conversion rates are also low.
Referrals from contacts help to contribute a lot towards gathering information about prospective customers. Your friend, family member or colleague may get you referrals based on his or her assumption or idea that his or her contact may need your product. You get in touch with the referral and may close a deal but chances are low. It is you who is taking the first step without knowing the person’s level of interest in your product. An aged lead is a step ahead because the show of interest is from his side – you already know that the prospect is surely shopping.
People like to trust a person or brand they are familiar with within their community. Hence, insurance agents and companies try to get involved with various events in the immediate community. Different ways in which you as an agent can get involved are by sponsoring community events, seminars, fairs or exhibitions. You can hand out your business cards and collect names and numbers of people to pursue later. However, most of those people may not come back to you simply because they don’t have the requirement for your product. Here again, aged leads score higher because the person requesting the quote is definitely looking for your product or something similar. So, it will be easier to convert a prospect who has shown genuine interest.
This is a traditional method of client acquisition still being used by agents – and it does produce some results – but not worth it. Costs involved for direct mailing are high and closures very low. Aged leads on the other hand, when bought in bulk can turn out to be cheaper than postage cost for direct mails.
One of the more modern methods since the popularity of Internet usage -has its advantages. It is possible to reach a high number of people as per your criteria at quite low costs. The click takes the prospect to your website where he can get more information. The prospect is paid for clicking the ad but that does not necessarily mean genuine interest. Hence this method too takes a back seat to aged leads since the leads there are one step ahead in the shopping process.
Your aim as an insurance agent is to reach the target numbers at the end of the day – for that you have to employ all possible methods. Aged leads happen to prove more fruitful when compared to these methods and is surely worth a try if you have not used yet.