Lead Gen vs PPC for Insurance Brokerages

There are a number of different ways to generate leads for your insurance brokerage. Two of the most common are lead generation and PPC. Both come with a range of pros and cons, and there is no one solution that comes straight out of the box. For the insurance industry, however, there can be some serious benefits to one over the other. Let’s start with a look at how each one works:

Lead generation involves the acquisition of qualified leads through the capture of their information on a contact questionnaire. For the insurance industry, this means providing leads from people who are at the right stage of the customer funnel to buy insurance.

PPC, or pay-per-click, is a form of online marketing where you pay a publisher (usually a search engine or social media platform) every time someone clicks on your ad. This can be a great way to get leads quickly, but it can be expensive if you’re not careful.

So which is better for insurance brokers? The answer depends on your budget and your goals. If you have the money to spare, PPC can be a great way to get more leads quickly. But if you’re looking for a more cost-effective option, lead generation is a better choice. With PPC, there is the added risk that your money won't bring you qualified leads. The blanket approach will pull people in, but if they are not ready to buy or fall out of your underwriting criteria, you've wasted your money.

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Why is lead generation more efficient than PPC?

One of the main reasons lead generation is more efficient than PPC is because you can target your leads more accurately. With PPC, you’re paying for ads that will show up on a wide range of websites, regardless of whether the person viewing them is interested in buying insurance or not. This increases the chances that you will waste time on a strategy that is unlikely to bring in customers that are ready to part with their money.

Lead generation takes a more targeted approach. You can aim for people who are already interested in buying insurance, which means you won’t waste your money on clicks that won’t result in a meaningful conversion. You also won’t have to spend as much time trying to figure out which keywords to target, since the leads you generate will be based on specific criteria that you choose. This is particularly useful for brokerages that offer relatively niche insurance products.

Setting your own criteria

One of the biggest benefits of using lead gen over PPC is that you get to set your own criteria for the leads that get passed through. For example, you might want to offer fleet insurance to people with more than three vehicles, or opt for people of a certain age.

When you use PPC, you have to target a very general audience. This can be risky, as you might not know what people are looking for when they see your ad. With lead gen, you can be more specific and target areas you wish to receive enquiries for. Again, this is an excellent choice for brokerages offering specialist products.

Why good leads equal better growth

One thing we cannot stress enough is the importance of pre-qualified leads. As a broker, you’ll understand how vital it is to get qualified leads as early in the acquisition process as possible. Prospecting takes a great deal of time and effort with little promise as to whether it will work in the long run, but working with a lead generation company takes a great deal of the strain away by offering pre-qualified leads that are easier to convert, thereby giving you a better ROI.

In fact, companies that employ lead gen and lead nurturing strategies report 50% more sales for 33% less cost. Also, up to 67% leads are lost due to sales reps trying to sell insurance to people who simply aren’t ready or willing to buy. Another shocking statistic is that 79% of marketing leads never convert into sales, which is down to a lack of lead nurturing. Now, imagine a pre-qualified lead coming in with all underwriting criteria met straight off the bat; can you afford not to try lead generation?

What to do if you’re not getting the leads you need

If you’re an insurance broker and you’re not generating enough inbound enquiries or wish to boost your book of business then it may be time to consider using a lead generation company.

Speaking with a lead gen platform such as QuoteSearcher will allow you to generate more targeted, inbound leads for your sales teams to work and ensure their time is spent wisely rather than qualifying leads you may not necessarily have schemes for which no one wants.

A partner, not just a service.....

Another reason to work with a lead generation company such as QuoteSearcher rather than throwing your whole budget at PPC, is that you will be getting just that: a partner.

Understanding the unique challenges faced by brokers is the key. PPC agencies are less likely to understand the intricacies of selling insurance products and services. A lead generation company who has been in the business for a while will understand how to design a campaign that is tailored to your specific needs and help you get the best of those leads to ensure they become an integral part of your business.

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If you’re not getting the leads that you need, it may be time to partner up with a lead generation company. Talk to QuoteSearcher today and see how they can help boost your sales figures today.