Evaluating the online inquiry response strategy of the...
Transcript of Evaluating the online inquiry response strategy of the...
BACKGROUNDAs consumers increasingly search
for products and services online,
insurance carriers and other B2C
(Business-to-Consumer)
organizations continue to strive to
capture this new breed of
“online” consumer. Velocify
hypothesized that although
insurance companies were
successful at marketing their
products and services, actually
converting these newly interested
consumers into paying customers
has been an area of ongoing
struggle.
In order to evaluate the state of
the industry, Velocify conducted a
secret shopper experiment
targeting 10 specific carriers. To
begin, Velocify researchers visited
each of the targeted insurance
carrier’s websites and submitted
their contact information
expressing their interest in
purchasing insurance. Once a lead
was submitted, each communication attempt from the carrier was carefully logged for evaluation and assigned a grade based on
how it performed in 4 key areas when compared against Velocify’s best practices.
Customer Acquisition 101: Grading Insurance Carriers
EXECUTIVE SUMMARY Velocify commissioned a “secret shopper” experiment to gauge how effectively insurance carriers respond to online inquiries. After
collecting data to measure the consumer response strategies of a sample of 10 carriers, Velocify compared it against established
best practices and then assigned grades based on the performance of 4 Key Performance Indicators (KPI’s). Although the
performance of the sampled carriers varies widely, the results indicate that the consumer follow-up strategies employed by the
average insurance carrier are not reaching their true potential due to lack of swift follow-up and due persistence.
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CompanySpeed-to-Contact
CallSpeed-to-Contact
Report Card
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Evaluated By:Industry:
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Lead Nurturing
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The grading methodology for this study consists of the average performance of each company in each area and across all inquiries, compared against established Velocify best practices. To learn more, please reference page 5 and 6 of this study.
The 4 benchmarked Key Performance Indicators (KPI’s): Speed-to-Contact Attempt by (1) Phone & (2) Email: The average speed to respond to an inquiry
(3) Lead Nurturing Capabilities: The average number of nurture emails sent
(4) Number of Call Attempts: The average number of contact attempts via telephone
Insurance Velocify
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Number of Contact Attempts (Call)
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Company B(Revenue: $6 Billion)1
Company G(Revenue: $1 Billion)1
Company A(Revenue: $14 Billion)1
Company J(Revenue: $35 Billion)1
Company H(Revenue: $29 Billion)1
Company C(Revenue: $20 Billion)1
Company I(Revenue: $31 Billion)1
Company F(Revenue: $4 Billion)1
Company E(Revenue: $1 Billion)1
Company D(Revenue: $25 Billion)1
1: Annual revenue calculated in US dollars for 2009
Velocify ResearchWWW.VELOCIFY.COM | (888) 856-0534
Copyright © Velocify, Inc. All rights reserved. This material may not be published, reproduced, broadcast, rewritten, or redistributed without expressed written permission.
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Evaluating the online inquiry response strategy of the average insurance carrier
After one month of collecting and logging
relevant data, Velocify researchers
calculated the average speed-to-contact
attempt, average number of nurture
emails, and average number of contact
attempts made by each of the 10 carriers.
By comparing the findings against the
established best practices (found on page
5 and 6), Velocify was able to evaluate the
The first KPI measured in this study was
speed-to-contact attempt, which
consisted of benchmarking how quickly
each carrier responded to a consumer
both by phone and by email. B2C
organizations that immediately respond
to consumer inquiries enjoy a wide range
of benefits that yield positive results both
in the short and long term. For
example, when a consumer is contacted
moments after they submit a request for
information, they are most likely to be
engaged, interested and receptive. By
speaking with them at this time of
heightened receptiveness, an agent is
more likely to convince the consumer,
and therefore make a sale. Even if the
consumer decides that they do not want
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Speed-to-Email (Days)
no emails sent
(Company-Wide Average) (Company-Wide Average)
FIGURE A FIGURE B
effectiveness of each carrier’s online
consumer response strategy and
compare it against its competitors.
Due to the established correlation
between contacting a lead and
converting a lead, the objective of the
study was to measure the response
strategy during the pre-contact period
(after an inquiry has been made, and
prior to when any actual contact is
made). It is important to note that the
Velocify researchers posing as
interested consumers at no point
responded to any of the
communications made by the
insurance carriers.
RESULTS
to purchase immediately, B2C carriers
can look forward to the fact that
consumers are more likely to return to
the first organization to contact
them–even if they decide to “price-shop”
or look elsewhere. Since information
about competing organizations is often
just a click away, educating consumers
and providing responsive customer
service allows organizations to forge
strong social and psychological bonds
that can mean the difference between a
sale and a missed opportunity.
Figure A and B above illustrate the
average time it took for each carrier to
respond to consumer inquiries via phone
and via email. Considering that Velocify
best practices dictate that
speed-to-contact is an important driver
of lead conversion and that contacting
a lead within 1 minute results in a
391% improvement in conversion
rates, it is quite startling to observe that
the average response time for both
email and phone calls clocked in at
around 2 days. In an age where instant
gratification is the norm, responding to
a consumer after such a long time
should be considered unacceptable,
regardless of the type of product or
service that is being sold.
Like speed-to-contact, the amount of
contact attempts an organization
makes for each lead and its ability to
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Velocify recommends responding to inquiries within 1 minute after receipt. (See p. 5 for a detailed overview.)
A B C D E F G H I J
companyA B C D E F G H I J
company
Velocify recommends responding to inquiries within 1 minute after receipt. (See p. 5 for a detailed overview.)
Customer Acquisition 101: Grading Insurance CarriersEvaluating the online inquiry response strategy of the average insurance carrier
Velocify ResearchWWW.VELOCIFY.COM | (888) 856-0534
Copyright © Velocify, Inc. All rights reserved. This material may not be published, reproduced, broadcast, rewritten, or redistributed without expressed written permission.
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nurture leads by email contribute
substantially to a successful consumer
response strategy. Velocify best
practices (referenced on page 5 and 6)
indicate that calling leads exactly 6 times
raises the chance of contact to 93% (The
6 Call Standard). By establishing a higher
probability of contact, an organization
can maximize each lead’s value and thus
convert more leads from existing
marketing investment. Also, they can
gain a 350% improvement in lead
conversion rates simply by sending 2-4
nurture emails to each lead. This simple
and affordable way to reach out to
consumers should be considered a
necessary tool for any B2C organization.
The results collected in this study, and
referenced in Figure C above, provide
evidence that many carriers are not up to
par when it comes to ensuring that
enough call attempts are made. In fact,
the average number of phone contact
attempts across all carriers was found to
be fewer than 2 attempts per lead,
indicating that many carriers are
neglecting leads that they are not able to
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Number of Call Attempts Per Lead
Velocify recommends attempting contact via telephone exactly 6 times.(See p. 5 for a detailed overview.)
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Number of Nurture Emails Per Lead
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(Company-Wide Average) (Company-Wide Average)
FIGURE C FIGURE D
contact immediately and therefore
missing out on revenue that could have
been gained with a little more
persistence. The majority of carriers
made less than 1 call per lead, with only
two carriers approaching the
recommended 6 Call Standard –
averaging roughly 4 calls per lead.
It is also clear from the data that the
email nurturing strategy of many of the
carriers is not much better than their call
strategy. In fact, the average number of
emails sent per lead across all the
carriers was benchmarked at just under
1 email, falling well below Velocify’s
recommendation of 2-4 emails per lead.
Only one carrier measured actually fell
within the suggested range; averaging
2.6 emails per lead, while another
company failed to collect email
addresses at the point of inquiry and
therefore did not have the opportunity to
send any nurture emails.
ConclusionThis study provides evidence that the
current consumer response strategies
employed by the average insurance
carrier fail to meet the standard best
practices established by Velocify, and
are therefore negatively impacting
performance. At a granular level,
Velocify found that many carriers are
simply not quick enough when
responding to consumer inquires and
are not persistent enough in both
attempting phone contact, and
nurturing via email. Improving speed,
process, and persistence holds the
potential of dramatically improving
customer acquisition for insurance
carriers and other B2C organizations.
Although it may be true that these
carriers are relatively successful in
their acquisition of new customers, our
research sheds light on how these
carriers, and other B2C organizations
in general, can refine their strategies
and standards to take their consumer
response strategy even further.
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A B C D E F G H I J
companyA B C D E F G H I J
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Velocify recommends sending between 2-4 nurture emails per lead. (See p. 5 for a detailed overview.)
Customer Acquisition 101: Grading Insurance CarriersEvaluating the online inquiry response strategy of the average insurance carrier
Velocify ResearchWWW.VELOCIFY.COM | (888) 856-0534
Copyright © Velocify, Inc. All rights reserved. This material may not be published, reproduced, broadcast, rewritten, or redistributed without expressed written permission.
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How does your organization stack up?
Velocify graded 10 leading insurance carriers by
evaluating the 4 Key Performance Indicators (KPI’s) of a
successful online consumer inquiry response strategy.
The 4 KPI’s include speed-to-contact attempt (phone and
email), email nurture performance, and number of
telephone contact attempts.
Current consumer inquiry response strategies utilized by
insurance carriers were found to be subpar when stacked
against Velocify best practices.
Fostering a strategy that enforces quick response times,
an appropriate volume of contact attempts, and adequate
lead nurturing, can maximize an organization’s potential
sales and revenue.
Paying particular attention to the sales workflow after a
lead has expressed interest in a product can have
significant impact on a carrier’s bottom line.
Interested in learning more about the research cited in
this study? Visit Velocify.com/whitepapers to access our
entire research collection.
KEY INSIGHTS
Founded in 2004 and headquartered in Los Angeles, Calif., Velocify
develops software as a service (SaaS) solutions for managing sales
leads. Distinguished by its focus on solutions that address the
unique needs of businesses who sell to consumers, Velocify is
recognized as a market and technology leader, managing more than
25 million leads for over 5,000 clients.
With a suite of solutions scaled for small to enterprise organizations,
the company offers the industry’s most comprehensive and
configurable lead management platform.
Velocify enables companies to distribute, track, analyze, and
convert sales leads using a customizable lead management
workflow. Professional services, including training and process
consulting, are also offered to deliver a highly effective solution for
converting sales leads. Businesses look to Velocify for solutions that
allow them to maximize their investment in leads generated online
and from traditional sources, and ultimately increase sales closure
rates for greater revenue.
For more information, visit www.velocify.com.
ABOUT VELOCIFY
Visit Velocify.com/GradeMe for a free, no obligation analysis to see how your organization “stacks up” against Velocify’s proven best practices.
Customer Acquisition 101: Grading Insurance CarriersEvaluating the online inquiry response strategy of the average insurance carrier
Velocify ResearchWWW.VELOCIFY.COM | (888) 856-0534
Copyright © Velocify, Inc. All rights reserved. This material may not be published, reproduced, broadcast, rewritten, or redistributed without expressed written permission.
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Velocify Best Practices: Benchmarks Measured
Speed-to-call and speed-to-email are essential components of any sound inquiry response strategy. In an increasingly competitive Internet age where consumers have access to many different market options, following up quickly is one of the most important factors to successful consumer sales.
Velocify research has shown that speed-to-contact is an important driver of lead conversion: Responding to leads within 1 minute resulted in a 391% improvement in conversion rate.Beyond Qualification: The Impact of Speed on Lead Conversion Rates | April 2010
Sending nuture emails to consumers that have expressed interest but who may not be immediately ready to buy, is a cheap, easy, and effective way to acquire new customers that would otherwise be missed.
Velocify research shows that leads that receive email nurturing have a 3.5 times higher chance of converting than those that receive none. Additionally, leads that receive 2-4 emails convert 42% better than those that receive less than 2.Velocify Analysis | February 2010
Speed-to-Contact – Best Practices
Lead Nurturing – Best Practices
*Although Velocify emphasizes that a good lead nurturing strategy should last longer than 30 days, the study measured email nurturing within a 30 day window because we believe the time frame is a strong indicator of a carriers overall lead nurturing strategy.
0:00+0% +200% +300% +400%
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Strategy
(continued)
Don’t wait to attempt contact with a lead who expresses interest. Reaching out to them immediately (within the �rst minute) allows your organization the best chance of converting them into a customer. Even if your staff is not able to keep up with the high volume of leads on a particular day, an instant automated email acknowledging that someone will reach out to them soon can mean the difference between a conversion and a lost opportunity.
Fact: Only 4 out of 10 carriers studied had automated instant email capabilities.
A+
Fact: The carriers measured in this study sent an average of only 1 email per lead.
If your company does not automatically respond to every lead via email upon receipt of a lead, your company is certainly missing out on signi�cant new revenue. Nurturing your clients between 2-4 times via email is an important component of a successful consumer response strategy.
Customer Acquisition 101: Grading Insurance CarriersEvaluating the online inquiry response strategy of the average insurance carrier
Velocify ResearchWWW.VELOCIFY.COM | (888) 856-0534
Copyright © Velocify, Inc. All rights reserved. This material may not be published, reproduced, broadcast, rewritten, or redistributed without expressed written permission.
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Velocify Best Practices: Benchmarks Measured
Getting Leads From Your Web Properties? Here’s an Online Approach That Works.
To an online consumer, your website is the face of your company and it is important to keep it simple, attractive, and useful. Your website should be designed to move a consumer through a simple 3 step process (outlined below).
Attract Educate Capture(1) Attract: Getting a consumer to your website is one thing, but keeping
them there is another. Create a website that is aesthetically pleasing, but not overwhelming.
(2) Educate: Provide your consumer with education about your products and reasons why they should do business with you. Don’t make consumers work for information; empower them with easily digestible facts and tools.
(3) Capture: Now that you have a lead’s attention, provide a simple contact form that allows a consumer to disclose as much information as they are willing to disclose. Don’t limit how much information you can collect, the more information a lead provides, the greater the chance of contact.
Opps, Arie. “Focus on ‘User Experience Optimization’.” Entrepreneur 05 Feb. 2010: Web. 12 Oct. 2010.
Fact: 2 out of 10 companies measured in this study failed to collect basic contact information from a consumer when making an inquiry online (phone number or email address).
Online Consumer Engagement – Best Practices
Maximize the value of each lead by attempting contact 6 times. Giving up too soon or spending too much time on ultimately unproductive leads can signi�cantly undercut an organization’s new client acquisition potential. Velocify research found that making 2 calls versus just 1, increased the chances of contactinga lead by 87%, and that calling 6 times (The 6 Call Standard) resulted in nearly the maximum possible contact rate, with minimum opportunity costs.Six Calls Equals Success: The surprising Impact of Call Frequency on Lead Conversion | November 2009
Call Frequency – Best Practices
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6th call attempt93% chance
1st call attempt39% chance
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2nd call attempt72% chance
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Data
It should be every organization’s priority to attempt to contact each lead via telephone 6 times. By following this 6-call approach, your organization is maximizing the value of each lead while minimizing wasted effort.
Fact: The average carrier attempted only 1.7 calls and sent only 0.9 emails per lead.
Strategy
Customer Acquisition 101: Grading Insurance CarriersEvaluating the online inquiry response strategy of the average insurance carrier
Velocify ResearchWWW.VELOCIFY.COM | (888) 856-0534
Copyright © Velocify, Inc. All rights reserved. This material may not be published, reproduced, broadcast, rewritten, or redistributed without expressed written permission.
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