The Internet as a Marketing Tool

The insurance agent's traditional marketing mix has forever depended on customer referrals, cumbersome direct mail pieces, expensive Yellow Pages directory commitments, vague local advertising efforts, and depending on location, an occasional walk-in prospect. With the expansion of the Internet and new technologies like the iPhone®, though, many of these channels are becoming irrelevant and ineffective. Conveniently, the demand from both consumers and agents to be introduced to each other via the Internet is stronger than ever. The Internet can easily bust a traditional agent's limited marketing budget. Keyword advertising on Google® is the perfect example: the cost of a "click" for the search engine phrase "car insurance quote" can range between $16 and $32. Realistically, it may take half a dozen clicks for an agent to actually generate one quotable lead. That’s where Internet Lead Providers come into play. These organizations are online marketing specialists that target consumers searching for insurance information and quotes and convert them into motivated insurance leads for participating agents. Quality leads should include enough consumer and driver information for the agent to generate an accurate quote. Paying only for the lead, the agent is afforded the ability to focus on their core strength: converting leads into written policies.

Internet leads are like prospective customers that literally walk into an agent's office. They expect to be acknowledged immediately with the same level of service, attention to detail, and instant gratification. Accordingly, success with Internet leads is a function of an agent's ability to satisfy these expectations. As a rule-of-thumb, Internet leads generally yield a close rate between 8% - 12%. Depending on the follow-up process in place, responsive agents commonly close as much as 15%, 20%, and even 25% of their online leads. Recognizing the lifetime value of a customer through renewals, cross-selling, and referrals, agents can achieve very profitable margins on Internet leads with even a 4% close rate.

With a marketing ROI that exceeds that of any traditional method (not including referrals), most online lead generation programs generally allow agents to easily target insurance consumers by ZIP Code, product, price, and volume. As you consider different programs, be aware that not all lead providers deliver the same service and value.

If you're interested in developing a presence on the Internet and want to hear about the benefits of AgentInsider's Lead Program, please call 1-866-892-4080 or visit www.agentinsider.com.