Back to Blog

Factors that Influence Lead Conversion in Insurance Sales

Mar 20, 2019

Factors that influence lead qualityWith healthcare legislation at the forefront of discussion, insurance providers are operating in an industry that is constantly evolving. The needs of the market are shifting, and changing regulations require your sales team to be agile and knowledgeable.

When selling insurance policies, one of the key performance indicators is conversion rate. Optimizing your process to maximize resources is critical to improving your conversion rate. Lead generation is a key component, but your conversion rate is a reflection of your entire lead management operations—from initial contact to closing a sale. Consider the following factors that play a role in lead conversion.

Quality of leads

The quality of your leads heavily depends on the lead source. Businesses should have dedicated agents to always be available to answer inbound calls and respond rapidly to web leads.  Speed to contact is the key to success for outbound lead conversion.

Leads fall into three primary categories, and they should be prioritized in the following order:

  • Hot leads
    • Hot leads are the most time-sensitive prospects. These leads called you or filled out a web form on your site or another lead vendor’s site. They have already indicated interest in your product, signaling that they are in position to begin a sales conversation.
  • Warm leads
    • Warm leads typically enter your pipeline through business reply cards or purchased lead lists. As a best practice, BRC leads should be contacted within 24 hours. Age-Ins are also considered warm leads, representing prospects who will be turning 65 within the next 12 months.
  • Aged leads
    • Aged leads are typically leads where attempts to reach them have already exceeded three or four tries without conversion. Many times, these leads are contacted when there are no hot or warm leads available to work. In some cases, aged leads are assigned to agents that have less sales experience.

Effectiveness of distribution model

If you have a high volume of leads, identify the type of agent and sales channel that should contact those leads. Whether that contact is categorized as a hot, warm, or aged lead, best practice is to direct the lead to the most effective sales channel to increase chances of enrollment. To maximize sales opportunities, web leads should be directed to agents who are available to contact the lead immediately. Inbound calls are typically best worked by an agent in a call center environment.

Your distribution model helps determine the likelihood of closing a sale. By using an automated platform, leads can be distributed to the field or to a call center based on geography and agent skill-level. When handling a hot lead, quick response time is essential. Taking immediate initiative is vital to fight for that first contact. No lead is completely exclusive, echoing the need to act urgently to beat your competitors. Using an automated distribution system routes these leads to the best available agent.

Talent of agents

Automated lead distribution leverages the talent of your agents by following set business rules on routing leads. This ensures that your highest converting leads are distributed to your top-performing agents and aged leads are routed to your second-tier sales force.

Part of developing talent and growing your agents’ skill-set is implementing ongoing training courses—not just on product details, but selling queues. Invest time to train your agents on varying sales approaches for greeting a web lead versus calling a lead who submitted a BRC. This will grow your sales team’s confidence and ultimately increase conversion.

Researching solutions

As you research software options to optimize your lead management, look for a solution that allows your leadership and agents to consolidate all of your lead data and communication history in one place. Being mindful of each of the factors outlined above will contribute to your profitability as a business.

Interested in learning more about lead distribution? Check out our white paper on multi-channel distribution.