Lead Response Time: What the Data Says About Calling Fast

The published research on response time and lead outcomes, with the sample sizes, and what it means for how fast a broker actually needs to call.

Figures in this article describe the wider market and are drawn from the third-party sources listed at the end. They are not Lead Foundry results, and nothing here is a projection of what any individual broker will achieve.

The short version

Response time is the most studied variable in lead handling and the least acted on. This summarises what the primary research actually found, with sample sizes, so the numbers can be checked rather than repeated.

A note on sourcing. Most articles quoting these figures cite other articles, usually published by companies selling dialler software. Both underlying studies are freely available and are cited directly here.

The MIT Sloan study

The Lead Response Management study was run by Dr James Oldroyd at MIT Sloan School of Management in partnership with InsideSales.com. It analysed three years of data from six companies, covering more than 15,000 leads and over 100,000 call attempts.

Two findings are quoted most: the odds of contacting a lead called at five minutes versus thirty minutes drop by a factor of 100, and the odds of qualifying a lead across the same interval drop by a factor of 21.

The interval is the finding: The collapse happens inside twenty five minutes. Most brokers reading this will assume the relevant comparison is same-day against next-day. It is not.

The Harvard Business Review audit

HBR audited 1.25 million sales leads received by 29 B2C and 13 B2B companies. Firms attempting contact within an hour were nearly seven times as likely to have a meaningful conversation with a key decision maker as those attempting an hour later, and more than 60 times as likely as firms waiting 24 hours or more.

The behavioural findings are the more useful half.

First response time across the audited firms (Share of the 42 audited companies)
Responded within 1 hour37%
Responded in 1 to 24 hours16%
Took more than 24 hours24%
Never responded at all23%

Average first response across the audit was 42 hours. Nearly a quarter never responded at all. The gap between the recommended benchmark and normal practice is the opportunity.

Source: Harvard Business Review, The Short Life of Online Sales Leads

Firms that tried to contact potential customers within an hour of receiving a query were nearly seven times as likely to qualify the lead as those that tried to contact the customer even an hour later.

Harvard Business Review, The Short Life of Online Sales Leads

What the contact-strategy research adds

Response time decides whether the first attempt works. Attempt count decides everything after it. The Velocify research, derived from close to 3.5 million leads, found 93% of leads that convert are reached by the sixth call attempt, that six calls scheduled across a 15 day period improved contact rates by 110%, and that leads requiring more than seven calls are 45% less likely to convert.

It also found that 50% of leads are never called a second time. Salesforce reports 44% of reps stop after one attempt while 80% of sales require five or more follow-ups.

What the contact-strategy research found (Share of leads or reps)
Converted leads reached by the 6th call93%
Leads never called a second time50%
Leads that never receive one email59%
Reps who stop after a single attempt44%

Speed and persistence are separate levers and both are largely unexploited. The first bar is achievable; the other three describe normal practice.

Source: Velocify contact-strategy research and Salesforce State of Sales

How much of this transfers to broking?

The studies are not about insurance or mortgage broking specifically, and that is worth stating plainly. What transfers is the mechanism rather than the exact multiplier: a consumer submitted a form because they were thinking about something, attention decays, and other firms are calling.

Two features of broking make the effect stronger rather than weaker. Enquiries are often shared across several brokers, which turns delay into a lost race rather than a slower conversation. And the underlying decisions are triggered by dated events, so a consumer who resolves the trigger elsewhere is gone permanently rather than temporarily.

What to do with it

What does the research say about lead response time?

The MIT Sloan lead response study, covering more than 15,000 leads and over 100,000 call attempts, found contact odds fall by a factor of 100 between a five minute and a thirty minute response, and qualification odds by a factor of 21. Harvard Business Review, auditing 1.25 million leads across 42 companies, found firms responding within an hour were 60 times more likely to have a meaningful conversation than those waiting more than a day.

Who conducted the 5 minute lead response study?

Dr James Oldroyd at MIT Sloan School of Management, in partnership with InsideSales.com. It analysed three years of data from six companies covering more than 15,000 leads and over 100,000 call attempts, and is published as the Lead Response Management study.

How many times should you call a lead according to the research?

Six. Research across close to 3.5 million leads found 93% of leads that convert are reached by the sixth call attempt, that six calls across a 15 day period improved contact rates by 110%, and that leads needing more than seven calls are 45% less likely to convert.

Does the response time research apply to insurance and mortgage brokers?

The studies are cross-industry rather than broking-specific, so the mechanism transfers more reliably than the exact multiplier. Two features of broking amplify it: enquiries are frequently shared between brokers, turning delay into a lost race, and the underlying decisions are triggered by dated events that resolve with or without you.

Sources