Insurance sales have always been a challenging prospect when pitching your products and services to potential new clients.
Some agents love making traditional cold calls, but most hate them. Fortunately, it’s become easier to make targeted cold calls in the last several years because the Internet and specialized software programs allow agents to get detailed information about homeowners, enabling them to tailor their approach. Another innovation has been the increased use of “cold emails” instead of telephone calls. Which one is most effective? It depends.
Both Get the Ball Rolling
Whether you initiate contact with prospective clients with a cold call or a cold email, you’re looking for the same result. You want to open up a line of communication with the people you contact. They start the conversation about their insurance needs and introduce you as a solution.
Cold Calling Reputation
Cold calling has an unfortunate reputation, primarily because it started decades ago, when information about individuals’ needs, habits, and demographics weren’t easily obtainable for salespeople doing cold calls. Consequently, most calls were made randomly to anyone who had a phone number. For prospects, it was annoying, and for salespeople, it was inefficient. Today, software packages and market research mean you can call only those who are likely to be interested in your services.
Advantages of Cold Calling
There are some distinct advantages to cold calling, including:
- Person, one-to-one interaction
- The salesperson can immediately answer questions
- You can get an immediate response, so you don’t have to revisit the call
- You learn more about each prospect quickly and can use that to respond to their reservations
Cold Emailing Reputation
The word “spam” refers to junk email and advertisements, the enemy of busy people who have hundreds of unread emails in their inboxes. Unprofessional and repetitive emails from insurance agents can contribute to this reputation, but a well-crafted email sent only to qualified leads can jump-start a dialogue.
Advantages of Cold Emailing
Emails have a few advantages over cold calling due to their format, including:
- Easy to send out bulk emails for fast returns and less time with one person
- You can create colorful, eye-catching emails that capture readers’ attention
- You can include informational attachments and graphics
- Recipients can read emails at their leisure – no phone calls at inconvenient times
Combining Cold Calls and Cold Emails
There are disadvantages and advantages to each approach when looking for new clients. The most efficient and effective system may be to combine both emails and phone calls. Haines offers an article with valuable tips on seamlessly integrating the two approaches to maximize their effectiveness. By taking the best elements of both forms of cold contact, your insurance sales reach and conversion rates can increase dramatically.
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Insurance Sales: Cold Calls vs. Emails