Cold, Warm, and Hot Leads
Leads generally come in three types: cold, warm, and hot. You need a unique strategy for each potential customer contact. It is best to qualify potential clients at the outset of the sales process.
Not all prospects will make it through the sales funnel because they are not at a point of needing your insurance products and services. However, a cold lead may someday see the need for buying life or health insurance from you and turn into a hot lead, so all types of leads have their importance.
What Are Cold Leads?
A sales lead is ‘cold’ if the potential customer doesn’t know much about your company or doesn’t seem interested in it.
You may have just gotten their contact information, such as a phone number or email address, from a landing page or an online form that lets people sign up. According to this study from JD Power, 74% of insurance shopping starts online. The study also indicates people have moved to shop for insurance online in the past ten years.
Most importantly, they don’t know who you are or if they need your help in purchasing life or health insurance right now. So, even though they are early in the sales pipeline, they are a potential future customer.
Cold leads can become prospects as you learn more about them, their business, their problems, and the products or services they are already using.
What Are Warm Leads?
A potential customer who opts into your email list or replies to a cold email is an example of a warm lead. However, for a lead to move from the ‘warm’ to ‘hot’ stage, they must be a good fit for your business and show a clear interest in buying your insurance life and health insurance products.
According to Google Analytics, you may only have about a one to three percent conversion rate of your website visitors, meaning only a small amount will take the desired action of purchasing your life and health insurance products. How potential customers interact with your insurance firm might vary widely based on the kind and source of your leads. Some prospects within the ‘warm lead’ category may be more promising than others.
What Are Hot Leads?
‘Hot leads’ are qualified people ready to buy insurance from you. These are also called sales-ready or sales-qualified leads because they are prepared to talk to an insurance agent and make a final purchase.
Most of the time, hot leads don’t just come to you. Instead, they start as ‘cold,’ or ‘warm’ leads that you work to turn into sales.
Making the Most of Your Leads
As we discussed above, all leads are important in the sales process. While you want to focus most of your efforts on hot leads, warm and cold leads can also be nurtured and cultivated into hot leads. At Claro, we are committed to providing you, the agent, with the resources you need to thrive, and we take pride in sharing our experience to help your insurance agency increase sales.
Contact us to learn more about how Claro can aid you with your lead organization efforts.
