It’s easy to get caught up in the heat of trying to gather tons of life insurance leads.
But have you ever considered if you’re chasing the wrong kind of lead?
It’s not always about the NUMBER of leads you have.
Quality matters. A lot, in this case.
Here’s why your lead strategy should focus on loyal customers as well as seeking out thousands upon thousands of life insurance leads.
Life Insurance Leads: Don't Go After the Wrong Ones
It’s exciting to see new leads roll in.
After all, that’s part of the “high” that comes from the prospect of landing a sale.
Bringing in new business has always been more revered amongst insurance businesses, too, which in part may have led insurance producers to believe they had to always be on the hunt.
Life Insurance Sales: The Missing Piece
What does your office do when a client renews?
Anything?
It should; however, many insurance producers and agencies don’t bat an eyelash when a policy renews. It’s just part of the business, right?
When you turn your attention to creating a retention strategy – a way to document and manage the process of nurturing loyal, existing customers – and combine it with an effective strategy for promoting new growth, you’ve got a recipe for life insurance sales success!
Client Retention and Acquisition Matter
Life Insurance Sales: Retention and Acquisition
Client retention is just as important as bringing in new life insurance leads. As a life insurance producer, you should have a strategy to continue nurturing your current clients, as well as going after qualified leads.
Growth generally happens in three ways. Let’s explore what occurs.
Scenario 1
Your business’ annual revenue has reached $250,000 but flatlined.
If your customer retention was 81%, you would have lost 19 customers out of every 100. If your new customer acquisition was at 19, your business would remain flat, and revenue would not increase.
Scenario 2
However, you can greatly increase revenue by tweaking these numbers just a bit.
For example, if retention increased by just 2 percentage points and new customer acquisition increased 2 points, revenue would go up dramatically.
Scenario 3
But growth doesn’t stop there.
Continue focusing on retention of loyal customers AND new customer acquisition every year, and your revenue and growth will continue to go up, too.
A Successful Lead-Generation Strategy
Now, we’re not saying that you don’t need new life insurance leads.
The problem is, however, that most insurance producers favor new leads over existing ones.
Yes, you need a lead strategy that delivers a great closing ratio as well as an ROI.
But don’t sacrifice customer retention (loyal leads) for the sake of new leads.
In order for your business to be successful, you need to use both strategies to grow the number of relationships you have as well as the depths of the connections your business relies on.
Keep in mind that as you chase new leads, you’re pouring money into a marketing and sales funnel that won’t deliver – for a long time.
But investing in your current clients offers significant ROI. These clients:
- Already know and like you.
- And more importantly, they trust you.
- They are comfortable making a purchase from you.
- They will likely purchase again – if you nurture them properly.
- They will favorably introduce you to someone they know
In this area of lead generation, the little changes and investments you make deliver big results – or lots of revenue.
Don’t neglect to create a customer retention strategy in favor of pounding the pavement for new leads.
Ensure that your life insurance sales strategy includes BOTH: investing in loyal customers and generating new contacts.
Updated 8/2021
