If your day involves selling Medicare Advantage, you must monitor sales numbers to track your performance. In your sales report, you want to know the number of leads purchased and how many of those translated into real clients. When you divide the actual sales by the leads and then multiply by 100, you get the conversion rate. This may look easy; however, it all comes down to how you manage your sales process. A high number shows that your efforts are paying off, while a lower digit may call for improvement.
Conversion Rate Explained
A high conversion rate could mislead you into thinking that you’re an achiever, while in reality, you’re wasting time and losing a lot of money. It can mask what lies behind the good numbers. Unfortunately, many Medicare Advantage marketers live by the notion that a good percentage is all they need to show that they’re working. If you set a target of 10-20%, this could impact your sales journey. Think about two sales agents, A and B, who spend their day calling leads and convincing them to convert.
Assume agent A has 100 exclusive leads. In one day, he converts 10 of them into clients, and his conversion rate is 10%. On the other hand, we have agent B with 100 low-quality shared leads. In one week, he converts 10 into real clients, and his conversion rate is 10%.
Looking at this scenario, both agents have a conversion rate of 10%. However, it has taken agent A less time to achieve a rate 10% and agent B five days to accomplish the same. Both agents may feel like they have really achieved; however, it’s just an illusion. The real test will come down to how much each agent makes at the end of the month.
Reasons Why Conversion Rates Can Mislead
Usually, every year there’s an enrollment period for the Medicare Advantage plans for older adults over 65 years old. When these individuals start sourcing for these plans, they are noticed and processed by lead providers as potential clients to insurance firms and marketers.
But did you know that conversion rates can be deceiving? We explore why this is the case.
Quality of the Leads
An agent who has exclusive leads will be able to close deals quickly compared to an agent with shared leads. Exclusive leads are prospects who urgently need help, and their names are submitted in real time. They are only sold to one agent, and therefore, there’s a high chance of converting to real clients. That’s why insurance firms and marketers compete for these numbers. And if you buy Medicare Advantage leads that are exclusive to you, then you’re likely to succeed. These are highly interested individuals who are eligible for enrolment. Conversely, an agent has shared leads that are sold to many agents. These leads may be old, and the prospects are probably no longer interested in buying the coverage.
The demographics could be wrong, especially if they are younger than 65 years and out of your jurisdiction. You will work harder with shared leads, waste more time, and lose a lot of money. If you purchase exclusive leads, obviously, you’ll have a higher conversion rate. This gives you time to listen to the prospect’s issues, build trust, and establish a long-lasting relationship.
Time Taken And Real Cost Of The Sale
Even if two agents have the same conversion rates, it’s vital to consider the time it takes to close deals. One agent may take one day to close 10 sales while another may take five days to do the same. The issue is not the number of deals closed but the amount of time taken per deal. You will see that one takes less time and the other takes more time to do the same job. At the end of the month, the one who converts in less time will have a higher ROI even though their conversion rate is the same.
Exclusive leads may cost more compared to shared leads. However, they are likely to convert. Both agents could have the same profit potential since only 10 convert. However, one agent’s rate of conversion is five times higher than another’s due to the time spent on the leads.
Take Away
As a Medicare Advantage marketer, an obsession with conversion rates may slow down your efforts. The trick is investing in high-quality exclusive leads. These are seniors who have been vetted and are ready to narrate their story. In addition, have a time management system in place to track the time spent on converting a lead. Make follow-ups and choose a lead generation company that prioritises quality.