3 Tips for Leveraging Text Messaging in Insurance Sales
Are your insurance sales tactics dated? A barrage of repeated call attempts and emails may feel like the way to go when it comes to follow up, but if they annoy or overwhelm the prospect they’re ultimately counterproductive. To maximize ROI, it is important to mold your insurance team’s efforts to fit today’s savvy on-the-go consumers.
While text messaging has quickly become one of the most widely used forms of personal communication out there, it has been neglected by insurance agents in their selling efforts. In fact, only 2.1% of all prospects receive a text message during the sales cycle, a recent study released by Velocify found. The research examined more than 3.5 million prospect interactions.
The fact is, by adding automated text messaging into the mix, a savvy insurance agent can open a new channel for reaching potential buyers. Here are three key insights for using text messaging successfully:
- Establish a relationship before sending a text message. In addition to obtaining consent, new research strongly suggests that producers should also make contact with the prospect before sending a text message. The research shows that sending a text message to a prospect before making contact can dramatically reduce a producer’s chance of contacting a prospect by 39.2%. However, texting after contact can help significantly improve conversion rates by more than 100%.
- Send text messages with purpose. While very few prospects are sent three text messages after contact is made, the research strongly suggests that producers may want to send as many text messages as the interaction with the prospect requires. More texts, equates to greater engagement, and thus a higher rate of conversion. In fact, three or more purposeful text messages after contact is made with a prospect can increase conversion rates by 328%.
- Use text messaging when there is something timely to be said.When evaluating if text messaging makes sense to add as another channel of communication, take inventory of the various touch points you have with a prospect throughout the sales funnel and look for opportunities when there is something timely and important to say in a few words via text message. Some examples:
- Follow-up on a commitment made
- Reminder of appointment
- Quick acknowledgement of receipt or approval of document
- Notification about missing information or an upcoming deadline
And if you are still not sure if text messaging is a fit for your organization, consider this. According to a 2012 Forrester study, more than two trillion text messages were sent in the US in 2011, which equates to more than six billion text messages sent per day. Text messaging users send or receive an average of 35 messages per day allowing quick, direct communication that works on most mobile phones today. In addition, US adults are more than twice as likely to have adopted text messaging as any other form of mobile messaging, such as email, MMS, or instant messaging. And the trajectory will only grow with Gartner predicting that mobile devices will pass PCs as the most common Web access tool this year.
The Text Messaging for Better Sales Conversion report by Velocify is a must read for any insurance agent leveraging text messaging today or considering it in the future. Additionally, learn more about Velocify’s automated text messaging functionality, designed with the need to maximize every opportunity.