A few simple techniques can make lead buying a much more rewarding activity. Jonathan Barrett explains.
Where is the next client coming from? Is this something that just happens through luck, or is it something that the adviser takes an active part in? Of course, most successful advisers take an active role in where their new business is going to come from as the other option is surely a recipe for disaster. But things have changed.
For once this alteration is positive and, in the last two years or so, there has developed a ready supply of new business for any registered adviser who wants it. What is more, this new business is available in the postcode area of the adviser’s choice, you choose how much to pay for it – and you can access it at the click of a mouse.
Different approach for success
It is called lead generation. It has been a significant feature of the mortgage market for the last five years or more but is now a reality for advisers looking for life assurance and PMI clients and clients in other product areas are coming on board rapidly. However, when buying leads it can require a slightly different approach to be really successful and knowing the tips and techniques can make the difference between doing OK and achieving great wealth with it.
Lead generation works as a conduit, harnessing the power of the internet to put people looking for advice in touch with the qualified advisers who want to give them that advice.
Often a consumer will be browsing the internet for example, looking for information on life assurance to find out what it is, who they should get it from and how much it is going to cost them. Typically they find a certain amount of information and then decide that they need advice before they buy, just to make sure they are making the right decisions. At this point it is likely that they will fill out a form to ask for advice, containing their contact details and the details of what they think they are looking for.
At the other end of the process, a qualified adviser registers with a lead generator to buy leads in defined product areas. They would then ‘bid’ for a lead type. So they would decide, where they wanted their new client to come from, ideally how much cover they would like them to be asking for, and in the respect of life assurance, could choose to state a preference for whole of life or term assurance.
They then choose how much they will pay to receive the details of a client like that. Typically, for a life assurance lead, it is about £35, although it does change according to what area of the country is preferred, and even what time of day the adviser wants the client. In peak working hours there is more competition for new business, so the prices can be slightly higher, at a time when there are few other advisers working, the price will be lower.
As soon as someone who meets the stated criteria submits a form asking for advice, the adviser will receive their details. It happens in ‘real time’ so the details arrive the second the consumer has completed their request. The consumer has to give express consent, so they will have seen the company name even before they submit their request form. They will then be sent an email and a text with the company’s detail and marketing message.
Timing it right
So the adviser has the lead, what then? The best time to contact a potential new client or lead, is as soon as they have requested their advice. At that point they are still engaged with what they are looking for, will still be thinking about the product and will not have had time to continue their search for advice elsewhere.
They will have seen the company name up to three times – before they submit their request for advice, and then by text and by email saying that someone from the firm is going to contact them, so if they are called straight away they will be familiar with the company and engaged with the product.
The big difference with internet generated leads and either a referral or someone choosing to walk into an office looking for advice, is that at the point the adviser receives the lead, the consumer has no relationship with the company and, as yet, no loyalty either.
The crucial key at this stage really is speed of response. Ideally the adviser would need to get back to the person asking for advice immediately or within 15 minutes of them making the request.
Because the person is on the internet, they will not be expecting a call so quickly, so it will make a very positive impression; it will also stop the person from continuing to look elsewhere. If they are on the internet looking for advice and they do not find what they need in one place, the chances are that they will continue looking, so the objective is to show them that you can provide what they need and halt that search process.
Building rapport
The first aim has to be to start building rapport; it is not a good idea to treat the vendor like a referral, rather more of a tele-sales approach is needed and to build a relationship with that person as soon as possible. So be polite and professional. It sounds obvious but you would be amazed at how many people are not.
If the call goes through to somebody’s voicemail, leave a polite message saying that you are there to help them and leaving a name, contact number and email. Often people are searching the web and making an application whilst at work, possibly when they should not be, so they may not be able to take a call immediately. By leaving an email address too they may be able to send an email; but continue to phone them again in the day and then after work. Explain in the message when they will be contacted again so they will be expecting a call – and then do what you say you are going to, so that you are already building up a picture that you are reliable and trustworthy.
Once they are on the phone, find out as much as possible about them and establish a meeting if necessary. If it is a life sale it may be possible to do it on the phone, if it is PMI or something that is more in depth, it may be better to have a meeting – especially to maximise cross sale opportunities.
One of the many benefits of getting in touch with life assurance clients is that they are more likely to buy than consumers asking for advice on other financial products. Life assurance is not the sort of product where someone wakes up one morning and thinks “I know, I think I’ll buy some life assurance today”; usually the need and the search for advice will be triggered by an event that has happened in their lives: they may have got married, had a baby, have been made redundant and be setting up their own business, or have know someone else who has died.
All of this means that they will be more ready to buy than for many other products – it also means, that the adviser is very likely to be able to help them with more than just life assurance.
Have realistic expectations. Converting leads to business is a different type of sales process and it may take a little while to adapt. Even when you have been doing it for a while not every lead will convert to business. So make a note of what works and what does not and continually refine the processes.
Finally, to measure success, measure the return on investment – how much money the firm makes over a significant number of leads rather than counting how many are converted. Normally it will be necessary to buy a number of leads over a period of time to get a true picture, buying ten leads will not give a clear idea of how effective the process will be in the long term.
By honing the process, advisers will have access to a whole new range of customers that could lead the business out of this recession.
Jonathan Barrett is head of sales at Leadbay
