During the course of my days, I speak with many agents that are new to the AgentInsider® lead generation program, be it, in person, over the phone and via e-mail. As an experienced insurance professional, my favorite part of these conversations is the sharing of knowledge about sales strategies and techniques that have proven successful for online leads. For newer agents though, the question “What kind of close rate can I expect?” frequently precedes such consideration. It is an honest business question, and it deserves an honest answer: Close rates vary from agent to agent based on their sales strategies, their product's competitive position, and their ability to effectively manage online leads.

The majority of participating AgentInsider® agents that I speak with tell me that their close rates average between 6% - 12%. In fact, some agents have even claimed to close as much as 15%, 20%, and even 25% of their online leads! Fundamentally though, even with a 4% close rate, most agents cannot only break-even, but they can achieve a very profitable margin on their purchased leads. I know of some experienced agents that will continue a program at, or below that level, recognizing the lifetime value of a customer (renewals, cross-sells, referrals, etc.).

In addressing the question about close rates, I generally feel it is appropriate to discuss the real world expectations and differences of the online consumer, as compared to what many agents would consider a “traditional” lead. The most important thing to remember is that timing is critical to an agent's close rate. Online leads represent a consumer that has probably been comparison shopping and has most likely found multiple purchasing options, both online and offline. This growing population of insurance consumers expect instant gratification, so if the agent fails to follow-up in a timely manner, it is safe to say that the consumer has probably moved on.

Certainly the sales approach of one agent does not guarantee the success of another. Nevertheless, I know that AgentInsider® agents can learn from each other. I contacted some of the experienced AgentInsider® agents that have been using the system for the last year, and I asked them if I could share their knowledge about selling to online leads. As you will see, their responses involve principal sales practices of quick response time, follow-up and persistence, and asking the customer for his/her business using the unique personality that successfully differentiates each agent.

I believe that most agents can easily incorporate a part of these techniques into their own strategies, which could strengthen their close rates. If you have a successful approach that you would like to share, I'd love to hear about it. Please send me an e-mail at bschlotterback@insweb.com . I look forward to following-up next month with a few more unique approaches for every agent to learn from.

Mike from Tennessee:
• Internet leads account for approximately 1/3 of new business.
• Close rates average between 15% and 20%.

“As soon as I receive the e-mail notice, I personally make a phone call within a few seconds to the consumer. I want them to know that I am their agent. It gives them a comfortable feeling talking with me and I can personally let them know we will do everything we can to earn their business.  I clearly explain the process they will go through with my office and then I ask for their permission to call them back in three days to find out how their experience went.  Waiting even two to three minutes to make the first phone call reduces the percentage of phone calls that I connect with.”

Dave from New York:
• Internet leads account for approximately 10% to 15% of new business.
• Close rate average is approximately 10%.

“I designated one person in the office to receive all the leads.  She sends an e-mail within one minute or less to welcome the consumer to our office. We pose a ‘yes or no’ question to engage consumers in an online conversation.  We tell consumers that we are working on their quote right now and will have it to them in just a few minutes.   After the initial e-mail, the lead is passed on to one of our producers who will make the first phone call within five minutes to go over coverage and premiums.  Some of the keys to our success are to ask for their business and to follow-up.  We schedule all leads for follow-up at their renewal date if we don't connect after the first couple of days.  Persistence pays off.”

Steve from Illinois:
• Internet leads account for 5% to 8% of my new business.
• Close rates averages between 8% and 10%.

“I struggled in the beginning to even get consumers to talk with me. Even with quick call backs and immediate e-mails I struggled to close even 3%.  Instead of giving up, I changed my e-mail letter to offer a free promotional item (t-shirt, hat, coffee mug, pen/pencil set, umbrella) to just allow me the opportunity to show them my no obligation quote.  Even if I don't talk with the person and I send them my quote by e-mail or regular mail, I tell them they have earned the free gift by just looking at my quote and I tell them to stop by the office to pick up their gift.  I even close deals when customers stop by the office for their gift.  My contact rate has spiked tremendously and my close rate is somewhere around 8% and 10%.”