The Good, The Bad & The Ugly of Lead Generation
Lead generation gets a bad rap, but only because so many companies do it badly. From invalid leads to poor account management, you might have had a bad experience with a lead gen company that’s left you wondering whether it’s worth your time and money.
In fact, good lead generation should save you time and money, not cost it. A good lead gen company focuses on sales rather than volume, ensuring genuine leads from validated sources. In this article, we’ll look at the good, bad, and ugly of the industry and why you shouldn’t turn your back on the concept, just on bad companies.
What challenges do insurance companies face when it comes to leads?
The insurance sector faces many unique challenges regarding lead generation and this can lead to even more reticence from brokers to employ this kind of strategy. For example, the selling of renewal data can be a big issue; there are still companies out there who are selling it cheaply. Unfortunately, cheap doesn’t equal good - the contact rate and, more specifically, the sale rate is extremely low. Plus, with cheap data, you’ll need to spend your resources to make them work, with multiple calls and low conversions.
Another issue facing insurance businesses is the selling of leads to multiple companies. Insurance is a competitive industry with everyone wanting a piece of the action. This is why it is all about balance. A good lead gen company purposefully limits the competition in order for brokers to have a fair crack at the whip. Understanding the delicacy of the customer experience is key - a lead gen company has two customers: the broker partner and the customer looking for insurance. Creating an experience that benefits both is the best way to ensure long-term success.
What makes a bad lead gen company?
The reason some people are reluctant to give lead generation a shot is because there are so many companies out there that get it wrong. They think that volume trumps relevance and this can lead to both invalid or uncontactable leads and a high duplication rate.
If your fingers have been burned before, you’ll probably want to steer clear of lead gen companies that promise the world but underdeliver when it comes to the quality of leads. This usually happens when companies use cheap, recycled data; cheap leads seem like a good thing but ultimately turn out to be more expensive because they generate far fewer conversions.
Bad lead gen companies also don’t understand user experience. It is absolutely vital that the customer understands the way their details are being collected and used. Targeting a user at the correct point in the buying journey is important; a good lead gen company will make sure they’re hitting that customer at the exact time they are ready to receive a quote.
What makes a good lead generation company?
With all the focus being on how to do it wrong, it can be hard for insurance brokerages to know what the right way actually is. The best lead gen companies take a proactive strategic approach to partnership, making long-term efforts to become a valued part of your business, instead of just supplying leads and letting them disappear into the ether.
With this kind of partnership, you can get proper account management. Leads will be constantly analysed to see how they are performing, with constant optimisation, and any issues are dealt with in a timely and professional manner. The competition on leads is low, enquiries are not farmed out to the whole market, and with lower competition comes increased quotes and sales.
A good lead generation company will also keep the end user in mind. At the end of the day, a qualified lead leads to a sale and a happy customer that will return time and time again. With an informed and optimised process, the end user is fully aware of what happens when their details are submitted.
How can you tell if a lead gen company is worth its salt?
Reputation is a good representation of a company’s quality. If they partner with key brokers already, you’ll know they are trusted and dedicated to their craft. Longevity is another key component - how long have they been in business and how long have they worked with their partners?
QuoteSearcher has been in the business for over 15 years, adapting and growing with an ever-changing industry. We are upfront and honest with brokers and customers, priding ourselves in the way we communicate. Flexibility is key to our business, we endeavour to find leads that best match broker schemes, meaning optimum conversions with every iteration. Success for us is not about volume, it’s about the quality of conversions.
We work hard to be more than a lead supplier, we build long-standing relationships with brokerages of all sizes. Get in touch with QuoteSearcher today, and start your journey towards a scalable, strategic partnership that can help grow your business.