When it comes to life insurance leads, too many companies are wasting their marketing dollars. In fact, their cost per lead is 2-3 times too high.
So, let's talk about the causes and remedies of these unnecessarily high life insurance lead costs.
Lead Generation Mistakes
Here are some common mistakes that drive up your lead costs:
- Using standard or commodity prospect data. When you rely entirely on age and income data for your targeting, you don't have a chance to optimize your results.
- Using prospect data that is not prioritized by the consumer's overall responsiveness and purchasing profile.
- Relying on a single marketing channel. While direct mail-only and telemarketing-only campaigns can and do succeed, omnichannel campaigns often outperform them.
Cut Your Cost Per Lead
Now that we covered some of the critical mistakes, let's flip this problem on its head and discover how to cut your lead costs by 50%.
- Use "likely to buy insurance" prospect data. With the help of advanced analytics, you can identify the top 10-20% of consumers who will buy 90-95% of all life insurance.
- Prioritize prospects based on their spending profile. Consumers who are actively buying other services are much more likely to buy life insurance when presented with an offer.
- Test multi-channel marketing campaigns. Test a multi-channel campaign such as Facebook with direct mail. This is a cost-effective way to boost your response rates.
Bonus Tip: Segment your prospects and personalize your communications. Don't send the same offers and communications to all your prospects. Personalize them based on age, ethnicity, life stage and other consumer data.
Want to cut your lead costs in half? Avoid a few critical mistakes and take advantage of "smart prospect data," purchasing profiles, multi-channel campaigns and personalized messages.
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