The following article was written by Justin Rees for Debt Management Today. To read the original, click here.
Thousands of financial services companies in the UK use lead generation to source new business on a regular basis, however, for every lead buyer that makes a good return on investment from lead generation you can always find another that has had a bad experience. So what is it that differentiates the successful lead buyers from the rest?
Contrary to conventional wisdom, the answer is not always just down to the choice of lead provider. The following top tips will help you get the most out of lead generation:
The most successful lead buyers are the ones that have realistic expectations of what lead generation can achieve. The companies that spend thousands of pounds a week on leads will have spent months refining their processes to get the most out of their leads.
The first thing any new lead buyer should do is speak to a few lead providers to find out what the average conversion rates are for their chosen lead category. A few simple calculations should give you a good indication of whether buying leads is a viable proposition.
For example, if you can only afford to pay £200 for a converted customer, leads costs £50 and average market conversion rates are 10% then lead generation is not going to work for your business. Before you spend any money consider a few scenarios with different lead prices, conversion rates etc. to work out a best and worst case outcome.
Even if you only plan to buy a couple of leads per day you need to have a contact strategy in place to maximise your chance of speaking to every consumer. Remember, no matter how good the leads are, if you can’t get through to the consumer then you can’t convert the lead.
Best practice is to call every lead four times per day for four days before you can categorically action whether the lead is “dead” or not. If you buy two leads per day that’s potentially over one hundred calls you need to make each week. Do you have the systems in place to manage this? Do you have the time and resources to follow best practice recommendations?
Invest in your success
If a lead provider quotes an average conversion rate of 10%, remember this is only an average across thousands of leads across months of data. If you take a random sample of one hundred leads you could expect to convert ten into business but it is impossible to tell whether those conversions will be from the first ten leads, the last ten or evenly distributed over the hundred leads.
The point is that you need to make sure you take a large enough sample of leads to give yourself a chance of achieving the average conversion rates. For any new lead buyer, this should be an absolute minimum of thirty leads across a one month period.
Lead generation allows you to define exactly what profile of prospective customer you want to target – only paying for each lead as it is received and returning leads which do not match the pre-defined criteria. The perfect customer may not exist but try to narrow the profile down as much as possible. For debt leads, this means you can choose the debt amount and number of creditors a consumer has as well as filter by post code.
Every lead has value so even if you can’t provide a service to the customer for whatever reason, maybe you know a company who can. There are thousands of pounds to be earned from referring business and any revenue generated should be attributed back to the lead.