In sales of any kind the terms leads and prospects are almost thrown around as if they were synonyms. But this couldn’t be further from the truth. I realized that unless I trained my staff to FIRST understand the difference and SECOND create a priority list of how to work which I was misusing their time therefor wasting my dollars.
Here is MY definition of both. Now mind you, I didn’t go to Websters, because I really don’t care what they say…I derived my definition by 10+ years of sales/marketing failure and success. Sorry if you disagree.
Prospects: Is purely informational based. This is primarily the demographics and tidbits about an individual or company. For car insurance it can simply be a name, contact info, vehicle type, age etc… What ANGERS me is that internet lead providers sell you PROSPECTS not LEADS. The cost of an internet “lead” (if I could make bigger quotes I would) is anywhere from $12-$50 (depending on your market). What kills me is these are prospects because don’t for a second tell me that internet “leads” have a genuine interest in talking to you 95% of the time. So the next logical question is “How much is a prospect worth?”. Take Sales Genie for instance (my choice for prospect lists). You can get over 100,000 prospects for roughly $500-$750 (depending on specials and promotions they have going on). So we are talking about $.01-$.05 depending on the deal you can get. So you don’t have a phone number that is on the DNC anyway…big deal, look at the cost difference. Now do you see the scam internet lead providers are offering?
Leads: So now that I’ve explained prospects, leads (as you’ve guessed) are individuals who have shown an interest in your services. There are stages of course (Warm vs. Cold). But overall a lead is someone willing to talk to you and hear what you have to say. That is why I love direct response marketing, because you can quickly turn a prospect to a Cold Lead without the cost.
So all of this is great right? But the even bigger thing that you need to be aware of in your office is how all these are being prioritized! If your staff is working a prospect before a warm or cold lead then once again we are not maximizing time or efficiency. So after you train your staff on the difference between the two you then have to educate them on a priority sequence (don’t worry, I’ve included a FREE on for you).
So take this as a lesson that will save you time and money if remembered throughout your agency. If you enjoyed this and find it useful, do yourself a favor and click on the Underground Agency pic below…because this is just a free snippet of what we have!