Data Interview Question

Assessing Lead Value in Insurance Sales

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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.