There are many tactics that insurance agents can use to make their phone ring with auto insurance leads or auto insurance shoppers. These tactics can range from networking to direct mail to live transfers. All of these tactics have the potential to make an insurance agents phone ring with someone genuinely interested in receiving a quote for a new auto insurance policy. Insurance agents should consider a few measures before they engender to use these tactics to increase the likelihood of obtaining the highest possible ROI. These measures include upfront costs, expected response, how competitive it is and what percentage of those responding will truly want a quote.
The following are 7 tactics to make an agents phone ring with someone interested in getting an auto insurance quote. Once an agents phone rings, there is no guarantee that they will write the policy, but it is a critical first step. The more people an agent quotes, the more policies they will write.
There are many direct marketing and advertising agencies that will recommend that you use direct mail to make your phone ring with consumers looking to purchase auto insurance. Direct mail comes in the form of a shared mailing, where your agency information is put into the same envelope as 15-20 (or more) other offers or a solo mail in the form of a postcard or letter. There are several national and regional companies that do monthly mailings with multiple offers, one such companies mails in a blue envelope. The response rate of a group mailing is generally lower than doing a solo mailing, however the costs are lower.
Solo mailings are often recommended to insurance agents because of their ability to be mailed or targeted by zip code. It allows agents to go after the areas with the highest incomes or home values. Unfortunately, there are many agents seeking to generate auto insurance leads from these areas, so it is very competitive and may result in lower response rates.
With the growth of online banking and bill pay, fewer and fewer people rely on mail and as a result, both forms of direct mail will end up in the thrash without anyone ever looking at it. Do you look at every piece of mail you receive?
Upfront costs: MEDIUM - List, artwork, printing, and postage.
Expected Response: 1-2% - Usually requires multiple mailings to improve response
Competition: HIGH - Many agents use shared or solo mailing to make their phone ring
Percentage looking for quote: UNKNOWN - May be a combination of customer service and sales
Using outdoor advertising is a great way to help build your brand and name recognition. People sitting in traffic or speeding down the road, will see your agency name and picture. If they are in the market for auto insurance, they may copy down your phone number or website address to contact you later for an auto insurance quote. They may even call you from their mobile phone while they are looking at your advertisement. Hundreds or thousands of people will see your advertisement everyday depending on the advertisment location.
While outdoor advertising is effective for getting exposure for your agency, it is less than ideal for making your phone ring with insurance leads. The consumer will see your advertisement for a split second and it is very hard to quickly convey a message to get them to contact your agency, if they are even looking for auto insurance. The auto insurance leads generated from outdoor advertising will be expensive and difficult to guarantee concrete results.
Upfront costs: HIGH - Artwork, printing, installation, and monthly rental
Expected Response: UNKNOWN - Very hard to measure, generally used for branding than direct response
Competition: MEDIUM - Due to the high cost not many agent have the resources to utilize
Percentage looking for quote: UNKNOWN - Generally used for branding, may generate customer service calls
Traditionally, agents have been taught to spend a majority of their time working their circle of friends and family to sell them insurance. The idea being, they would be more willing to work and stay with you since they have a relationship with you. To broaden their circle of influence they were encouraged to canvass and attend networking events to meet more people and talk with them about insurance. They were also encouraged to seek out referrals from happy clients to obtain additional auto insurance leads. While this can be an effective, low financial cost way to reach people, it takes a tremendous amount of time and effort.
This method also requires a significant amount of followup. While an insurance agent may make initial contact with someone at a Chamber event, they will need to contact them again to provide them with a quote. It may take numerous calls to reach them and then result in them having no interest in receiving an auto insurance quote.
While the insurance leads obtained from these tactics may be financially inexpensive, a good amount of time and effort will be wasted using these tactics.
Upfront costs: HIGH - While the hard costs are low, it is very time consuming and requires a significant effort to followup with the people you meet
Expected Response: UNKNOWN - Many of the people you come into contact with may be happy with their current insurance company and not looking to change
Competition: HIGH - This is a very traditional way insurance has been sold, most long time agents use these tactics
Percentage looking for quote: UNKNOWN - Agents may need to talk with hundreds of people before finding even one person shopping for insurance
Newspaper, radio and television are some of the most effective methods to reach a broad audience. You can even use it to target your message to specific audiences. If you want to reach women 18 to 34, you can place your ads during programming with the highest ratings among that audience. Many newspapers even have city or regional editions so you can target where you want your message seen and by whom. The broad reach can have your advertisement seen or heard by hundreds and thousands of people.
Like outdoor, mass media is great for branding and getting your message out to a large audience. Many of the people seeing your message will not be in the market for auto insurance. A good amount of your effort will be wasted.
With mass media advertising, it is very hard to predict a response. The frequency of someone seeing or hearing your ad will increase the likelihood that they respond, when they are looking to buy. With mass media, you almost always need to be running ads to be there when someone wants you. As a result, mass media advertising requires a significant investment of money, time and effort.
Upfront costs: HIGH - Copywriting, talent, production, and airtime/space
Expected Response: UNKNOWN - Very hard to measure, generally used for branding
Competition: HIGH - Will be competing against national brands and call centers
Percentage looking for quote: UNKNOWN - Will increase overtime, requires a significant investment is running ads at high frequency
Event or group sponsorship can take the form of a large or small financial investment. On the low end, an agent might be able to sponsor a little league baseball team for $500. Alternatively, on the high end, an agent could sponsor the major league baseball team in their area for several million a year. Like mass media and outdoor advertising, sponsorships are an effective way to promote your brand. While someone may remember your agency when they are looking to purchase auto insurance, it is very difficult to predict the response you will get from these efforts.
Upfront costs: LOW TO HIGH - Depending on size of event or group
Expected Response: UNKNOWN - Very hard to measure, generally used for branding than direct response
Competition: LOW - Due to the high cost not many agent have the resources to utilize
Percentage looking for quote: UNKNOWN - Generally used for branding, may generate customer service calls
Online marketing has been the rage for the past several years. There are hundreds of companies contacting you everyday to sell you internet insurance leads, search engine marketing, pay-per-click advertising (or Google Adwords) and email marketing. These efforts are an attempt to reach people actively shopping or searching online for auto insurance. The objective is to drive people to your website or a dedicated landing page where they will either call you directly or fill out a lead generation form. You then can contact them to provide an insurance quote.
Online insurance marketing is extremely competitive, local agents looking to compete with the likes of national carriers and lead generation companies, will have to spend considerable sums to drive traffic to their website without any guarantee that it will result in a phone call or lead form completed. Even if an insurance internet lead is generated (or you purchase it), there is no guarantee that you will be able to reach the lead, even though you paid to drive that person to your website. Like many of the other tactics, you will have to spend considerable money without any guarantee of talking to someone looking for a quote.
Upfront costs: HIGH - You will be competing against national brands and call centers, the more you put in, the higher response you will get
Expected Response: UNKNOWN - You may get traffic to your website or landing pages, however will be hard to predict those who will call your office for a quote or complete an online form
Competition: HIGH - You will be competing against national brands and call centers
Percentage looking for quote: UNKNOWN - You are paying to send traffic to your website or landing pages, message and incentives will be key
Using insurance live transfers to make your insurance agency phone ring is an effective way to grow your insurance agency. The people you will be talking with will have all been pre-screened to make sure they are looking to receive a quote. With live transfers, you will be able to target the type of buyers you are looking for and from which areas you want to receive calls from (or anywhere in the state!). You can also set the days of the week you want the calls and the hours of the day. With insurance live transfers you only pay for the calls you receive, there is no time wasted money or time talking to someone not interested in getting an insurance quote.
With insurance live transfers you pay for what you get. If you want to talk with 5 people a day looking for an insurance quote, that is all you pay for. Insurance live transfers are an effective and efficient way to generate auto insurance leads and make your phone ring with people looking for a quote.
Upfront costs: LOW - No upfront costs
Expected Response: 100% - Live transfers are on demand, you get how many calls you want
Competition: LOW - All the live transfers are EXCLUSIVE, no other agent will receive those calls
Percentage looking for quote: 100% - Phone insurance leads are qualified to make sure they are genuinely interested in receiving a quote for auto insurance
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Agent Ethan Kosmin generated over $200,000 in premiums during his first year in business thanks to Contact Concierge.
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