Assessing Lead Value in Insurance Sales

Requirements Clarification & Assessment

1. Objective Understanding:

   • Key Inquiry: Determine if increasing the volume of leads to insurance agents enhances their value and improves customer retention.
   • VP's Hypothesis: More leads equate to higher retention and increased agent value.

2. Data Collection:

   • Lead Distribution Data: Monthly lead count per agent over their tenure.
   • Retention Metrics: Customer retention rates corresponding to lead volume.
   • Agent Characteristics: Experience level, sales skills, and other demographic data.
   • Market Conditions: External factors like economic trends and insurance market shifts.

3. Potential Issues Identification:

   • Correlation vs. Causation: Ensure that the observed relationship between lead volume and retention isn't coincidental.
   • Selection Bias: Recognize that agents receiving more leads might inherently differ from those receiving fewer.
   • Confounding Variables: Consider other influences on retention, such as agent skills or lead quality.
   • Time Bias: Address the potential bias of comparing agents at different career stages without accounting for tenure-related advantages.