How to Identify Your Best Lead Sources
If you Google the definition of “lead source”, you’re going to get many different variations of the same idea. Put simply, it’s the first channel through which a contact hears about you.
Common lead sources for insurance agencies include:
- Purchased list
- Social media
- Website lead form
- Google Adwords
- Cold calling
- And more…
Whatever sources you use at your agency, tracking it for each individual is crucial for two reasons: to know how effective your marketing efforts are (identify what your audience is drawn to) and to continuously improve sales performance (identify which sources tend to close the most).
Do you know what your insurance agency’s most profitable lead source is? If not, you could be placing resources into unprofitable avenues, or you might be underestimating successful lead sources. The only way to know where to place resources to get the most ROI (return on investment) is to track the source of every lead that comes in.
The best way to track and analyze your lead sources is to use an agency management system (AMS). As you can see below, an AMS like AgencyBloc allows you to assign a lead source to each lead that comes in. Here you can see a list of this agency’s custom terms they use as lead sources.
AgencyBloc Customizable Lead Sources
Using Lead Source Data to Guide Marketing Efforts
With every lead source tracked in one place, you can now get smart about your marketing efforts. By looking at lead sources for your individuals and groups, you can identify what’s working and what isn’t. From there, you can make more informed business decisions for your agency.
In the image below, you can see that this agency’s client referrals have initially brought them into contact with the most groups, but affiliates or partners have actually delivered the most sold policies in the end.
AgencyBloc Groups & Policies by Lead Source
What can you do with this information? Make tweaks or changes to how you’re gathering and acting on leads. For example, this agency may want to look into why client referrals don’t have a higher conversion rate into actual clients. Maybe there are some small tweaks they can make to increase this conversion rate, like putting automated emails into place and ensuring agents reach out ASAP.
Using Automated Workflows in AgencyBloc, you can ensure all the necessary steps are taken to give yourself the best chance of lead conversion. To learn more about this, check out: 3 Steps to Convert More Online Insurance Leads.
Dive deeper into the information on the graph above by running custom reports to better understand the performance of your leads.
Tracking Lead Sources to Improve Your Sales Close Rate
Whether you call it a conversion rate or a sales close rate, what we’re discussing in this blog is how many of your leads from a certain source end up purchasing a policy and becoming a client.
A conversion rate can be calculated for many things, like landing pages and ads. It helps you determine how well your marketing efforts interest your audience.
On the other hand, HubSpot describes what a sales close rate is:
“Your sales close rate is a number you need to keep a close eye on—out of all the deals in your pipeline, what percentage do you actually close?
Sales close rates let you know how efficient and effective you are as a sales rep. And it's a good way for managers to measure sales rep and sales team performance. The higher the close rate, the better your rep and team are at converting opportunities in the pipeline into revenue.”
The best case scenario is to monitor both to better guide your marketing and sales teams. With this insight, you can be sure your marketing dollars and resources are pointed towards the lead sources that are proven to bring in worthwhile leads. Plus, you can dig deeper into potential sales issues like the client referrals example above when you see certain leads aren’t closing at the rate you’d expect.
As for conversion rate and sales close rate benchmarks, there’s a lot of variability. Conversion rates, for example, will vary across mediums—like email, landing page, ads, etc. HubSpot does provide an insurance industry sales close rate benchmark, though. Using their close rate comparison tool, I found that the insurance industry standard is about 14%.
The best standard to pay attention to and measure against, however, is your own historical data. Tracking how your conversion and close rates are doing on a regular basis will help you address immediate issues and set goals for the future.
Start Tracking Your Lead Sources with AgencyBloc
See how AgencyBloc can help you track and analyze your lead sources so you can begin making smarter decisions. Schedule a live, 1-on-1 demo to discuss this and any of your other agency needs.
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This blog was originally published on 6/2/2016. It has been updated and republished on 10/27/2020.