Why Response Time is Critical When Cultivating Leads

Why Response Time is Critical When Cultivating Leads

What’s your agency’s lead time when it comes to getting in touch with leads on your list? Whatever the time frame is, there’s a good chance that it’s not fast enough. As it turns out, the faster your lead response time is, the more likely you are to sign those leads and retain them as customers. One study found an 80% decrease in the odds of qualifying leads between a five-minute and a ten-minute response time. This means that minutes matter — so when leads sit untouched for hours or days, you can imagine the odds rapidly decreasing.

Resisting the urge to procrastinate can be vital to keeping your agency running smoothly and making sure that your customers are satisfied. Wondering why lead response time is so important? Take a look at what you need to know.

Why Leads Go Cold Faster Today

It’s possible that if you were working in insurance a few decades ago, you would have had more time to cultivate your leads without penalty. What’s important that’s changed in the last few decades? The expansion of the internet.

Now that potential clients use the internet to research products or services they want to buy, no client has to go from office to office or make several phone calls talking to agents in person to find out what’s offered and what kind of deal they can get. Research shows that buyers do much of their research online, effectively eliminating a large portion of the traditional sales process. The internet makes the process easier for the client, and they don’t have to put themselves out there as a potential lead.

That means that when a potential client shows up on your list of leads, they’ve already done their research and are ready to talk to someone personally. They’re already close to making a purchase. So, if you act quickly, there’s a good chance that they’ll make that purchase with you.  Wait too long, however, and they’ll go with someone who reached out more quickly than you did.

Why Insurance is Harder to Sell

In insurance relationships matter
In insurance, relationships matter, but they’re more difficult to sell.

Another reason it’s important to get back to customers quickly is because of the type of services that you offer. It’s one thing to offer a product. If you sold shoes, for example, a customer can see the product. They can try it on to check fit. They may settle on a particular brand or style because it’s more comfortable than other brands. But insurance is not like a pair of shoes.

It’s harder to sell a service than a physical product. And when it comes to insurance, a lot of what you’re selling is a relationship between the customer and the insurance agent. That’s difficult for a customer who is accustomed to making purchasing decisions based on what they can see with their eyes or feel with their hands. They find relationships much harder to evaluate.

However, getting back to the customer quickly can help with your pitch by providing an example of how quickly you respond to their needs. After all, when you need to file a claim with your insurance company, you want them to come through quickly. A quick lead-response time shows the customer that your agency cares about them and is capable of a fast response.

If you’re ready for more information about how to chase down insurance leads, contact us.

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