Finding qualified leads is important for any salesperson, especially for those with strict sales quotas and longer sales cycles. Usually, insurance agents are the ones who must meet these criteria.

Agents who are effective at lead qualification can differentiate between leads that will likely close soon and leads that will not. Being able to make this distinction is crucial to maximizing the number of closed leads in a given time period. It's part of what it takes to be a successful insurance agent.

You're probably wondering, "What exactly comprises a quality lead?" A qualified lead is one that offers more information than just contact details.

Qualified leads have information that allows the agent to determine how "qualified" they are for certain insurance products based on factors like budget, authority, need, and timescale. In other words, the BANT approach.

BANT is a frequently used strategy to help determine lead qualification. These four factors form a basic rubric that can be used to distinguish qualified leads from unqualified ones.

BANT stands for the following:

Budget: Do they have enough money for the product?

Authority: Can they make a decision?

Need: Will the product they want fulfill their needs?

Timescale: Is this the right time for them to make a purchase? Is there a specific time when they prefer to purchase?

Another more modern model for determining lead quality is CHAMP: Challenges, Authority, Money, and Priority.

More agents prefer this model because it puts the customer's needs before financial ability.

A key point to remember is that the lead's challenges and needs should take priority over any other questions. Once you address the problem, then you can work on a budget and buying process to guide your customer's decision.

Determining the quality of a lead above all requires communication. Once a lead generates, wait no more than a few hours to follow up. Responding quickly shows customers dedication. This means they will be more likely to close with you. After connecting with them, assess their potential by asking lead-qualifying questions.

Use these questions as a reference:

  • What motivated this person to contact you?
  • What type of policy and coverage are they looking for, and can they afford them?
  • Is anyone else influencing their decision?
  • Are they interested in competing products or services?
  • How long have they been interested, and what's holding them back from purchasing a policy?
  • Do they need any more information before they decide?
  • How long do they need to make a decision?

Once you know the answers to these questions, you’ll have a better idea about the lead's qualifications. You can also confirm their qualifications by verifying that the details provided are correct.

Use automated checks on a form or call the person to check their details. From there, you can decide how much effort to put into trying to convert your lead. There are multiple systems for classifying the levels of lead qualification. Numerous CRMs can also help you classify all of your leads as they move through your sales funnel.

The most important point, however, is that agents should prioritize leads by their level of qualification, and spend their time and effort accordingly.

Why is this? Qualified leads tend to have better conversion rates because their interest is higher than basic leads. Although more qualified leads cost more, the higher conversion rates will help generate a decent ROI for you, the agent.

What’s your agencies most important qualifier?