Most agencies that use direct marketing successfully to generate sales have something in common - an effective system to handle and develop inquiries.
Direct marketing, especially telemarketing and direct mail, can be used to gain large numbers of leads in a relatively short time or a steady flow of leads during a longer period. The strategy is dictated by the agency's objectives, staffing, market conditions, and other factors. Whatever strategy is used, an agency's sales efforts will benefit greatly from a well-organized lead-management system.
Generating quantities of leads is only the first step in today's direct-marketing agency environment. Leads must also be properly qualified, developed, and tracked.
HANDLING RESPONSES
The agency may consider establishing a central handling department. This can be a select unit or an individual well-versed in product and underwriting knowledge who prescreens each lead. Mail response usually makes up the predominant share of leads. With walk-ins or phone contacts, the lead information is usually captured on the reply card and processed as a mail response (although coded on the basis of how received). Mail responses are received and processed based on the information provided by the prospect. Some responses may be illegible, lack phone numbers, or be unquotable, while others need to be acted on immediately, to capture the buying mood of the prospect. The following is a basic response scheme:
TIMELINESS
A large percentage of inquiries have an immediate need for the product or service offered. These prospects are saying, 'Yes, tell me more.' Responding immediately to these people is essential to sales success.
RELEVANCE
The information sent to the prospect should address what was requested. It helps prospects make the buying decision. It must be understandable and precise, and speak directly to prospects' needs, as expressed in the inquiry. Isolate the specific need and sell to it.
QUALIFICATION
Leads passed on for sales action should be properly qualified. This will determine lead quality in respect to underwriting acceptability and sales receptivity. A flow of well-qualified leads energizes the producer and staff. The responsibility for this function must be placed with someone well-versed in product and underwriting knowledge.
FOLLOW-UP
A qualified lead is a valuable commodity deserving the agency's best efforts in converting it into a customer. A prospect who is in a buying position because of an upcoming policy expiration is a prime sales candidate. Many will not reply; they may, however, respond to a personal call or a later mailing. The agency must always be aware that any number of influences can alter purchasing habits. Proper follow-up will capture the prospect in a favorable buying mood.
Another type of follow-up is to nurture a lead with an expiration date that is several months away. This lead can be developed effectively through phone and mail contact.
DISCIPLINE
A successful lead-management system exercises daily discipline. Replies are acted on quickly, producer activity monitored closely, and prospect files followed up on a timely basis. All elements, from the time a lead is received to the time the customer receives the insurance policy, are conducted in an orderly manner.