The following is a guest post from Answer Financial.
Have you ever had a customer for whom you had no product or competitive price? How do you fulfill their needs after having spent the time and money to get them in the door?
Some customers may return, others may not. The key to success is learning when to re-solicit the prospect versus referring the customer somewhere else. Agency managers need to answer the following questions:
- How and when should I resolicit customers who did not purchase?
- When should I refer a customer to someone else?
- What metrics should I analyze to make this decision?
- How do I manage my producers to optimize the return on their activity?
Large insurance companies recognize that not all customers will buy their products. Rather than let the customer go somewhere else, they often sell their competitors’ products through referrals, internal agencies or partner agencies. The insurance companies are paid a fee for the referral and use it to cover some of their operating or marketing costs.
Why should you consider selling off unsold prospects?
Running an agency is expensive. The average TurboRater user does about 120 quotes per month but only closes an estimated 30-35 percent of these quotes.1 The rest end up not buying for various reasons but still need insurance.
Imagine the Jones Agency has two producers and sees 300 prospects per month. The team only closes 30 percent of these prospects. The rest fail to purchase for various reasons. Some may come back later; others may not like the price or product. Mr. Jones looks at the unsold quotes and realizes that 25 percent fail to return in the future. Rather than give up on these, he offers the client a chance to get quotes from another source. He sends 75 of the unsold leads to a partner and receives $900 in revenue. Mr. Jones uses this $900 to recoup some of his operating costs. He is careful to make sure that he uses the available reports to manage his producers so they focus on the prospects with the highest conversion opportunity.
Join our webinar on March 22, 2017, to learn how you can monetize unsold prospects to offset marketing costs and increase revenue for your agency.
How to learn more
Join us on Wednesday, March 22 or contact Answer Financial® at firstname.lastname@example.org.
For a customized opportunity assessment, email email@example.com.
Who is Answer Financial?
Answer Financial is a national insurance agency serving insurance shoppers in all 50 states and from a wide range of credit profiles. Through their referral solution, they can help independent agents recoup some of their expenses by covering risks that their agencies cannot serve.
Answer Financial was founded in 1997 and is now a member of the Allstate family of companies. They represents 20+ carriers and serves customers 24 hours a day, 7 days a week.
1: Average quotes per user provided by ITC.
2: The above scenario was created for illustrative purposes only. Revenue earned from referrals is applied toward the agency’s TurboRater service fees and any remaining balance paid to the agency.
About the Author
As vice president of marketing, Becky Schroeder oversees ITC’s growth through marketing and drives the overall marketing strategy for the company and its products. Her specialties include advertising, social media, email marketing, content marketing and public relations. Becky has a master’s degree in integrated marketing communication from Emerson College in Boston and a bachelor’s degree in journalism from Texas A&M University. Becky is a big Texas A&M football fan and enjoys cooking, reading and spending time with her husband and their three daughters.Follow on Twitter More Content by Becky Schroeder