How to make lead generation work

Best Advice

Thousands of advisers all over the UK will be buying leads in order to fuel their new business pipelines. At the same time, the level of success from buying leads will vary greatly between lead buyers. While it takes time to implement all the necessary processes to make lead generation profitable there are a few areas that every lead buyer should definitely focus on.

Separate contact and advice

The first tip comes from the US – the home of lead generation.  Now while we are often sceptical about a lot that makes it across the Atlantic, when it comes to selling nobody does it better than the Americans! To borrow a well worn phrase, “callers aren’t closers” which essentially means it is not necessarily the best use of resources to have the same people calling the leads as advising and selling to customers.

Even with the ever increasingly sophisticated validation and verification technology it still requires a human to really qualify a lead in terms of both criteria and genuine interest level. Also, there is only a limited amount of information that is captured for each product so there will always be an extra level of qualification necessary for each lead.

If it is at all possible to task somebody more junior within your organisation to make the initial contacts you will reap the benefits over time as contact rate increases and only the most suitable customers are pushed through to the most experienced advisers. This will result in higher conversion rates and increased return on investment.

Minutes makes the difference

Most lead providers in the UK offer leads generated and delivered in real-time which means that the lead buyer receives the lead in a matter of seconds once the consumer has submitted their details online. The power of immediate contact cannot be underestimated but where many lead buyers get this wrong is that they think this means after 15 minutes or half an hour. Unfortunately the facts show that consumer leads contacted within sixty seconds are four times more likely to convert into business than those contacted after 60 seconds.

Any lead buyer that really wants to speak to more consumers and convert more leads into business should have the processes in place to make this immediate contact. And you don’t need a call centre to ensure this happens. Many lead providers offer a free SMS alert with each lead so even if you are out of the office you can still make that quick contact. Even if you are just about to do something else it is still beneficial to call the consumer to make contact, introduce yourself and schedule a call back. Not only will you make a good impression it will also prevent the consumer from going back online to fill in a form for somebody else to deal with their enquiry.

Don’t ignore the unconverted

Even for the most experienced lead buyers in the highest performing categories, conversion rates from leads will rarely be greater than 25%. That means that 75% of leads purchased will not generate any revenue today but they might do next week or further into the future.

There are thousands of reasons why a lead might not convert from the consumer making an enquiry early in the purchase cycle and not ready to commit or finding a better deal elsewhere. There are simply too many to document. However, the fact is that if the consumer has responded to some form of marketing about the product and filled in up to thirty fields of information to be contacted they certainly have some interest in the product and this gives you the potential to nurture that lead over time to convert at a later date.

There are some very straight forward and low cost software systems available in the market that allow you to continue the dialogue with each consumer over time so that when they are ready to purchase they will come back to you. These systems can be automated so after the initial set up there is little work that needs to be done.

Using the above example, for many products a 25% conversion rate will yield a healthy return on investment and with the added incremental conversions that can be generated from nurturing leads over time, the extra revenue potential can be significant for minimal additional effort.

Multiply your ROI

Many businesses make the mistake of looking at each lead as just one revenue opportunity but the most successful lead buyers look at each lead as multiple opportunities. Whether it’s a cross-sell into a related product or the chance to earn a referral from the customer you can multiply the profitability from buying leads by looking at things in this way.

Like Oliver Twist, you should always be asking for “one more” and the impact this can have on your business can be huge. For example, even if you buy just 10 remortgage leads, one extra cross sale into a life insurance policy can turn an average campaign into a profitable one and it is certainly cheaper than buying life insurance leads!

Make sure you have the systems in place to track all of these opportunities that fall out of every lead and also track the results and any conversions. This will enable you to make better decisions about how much you can spend on leads and which lead providers you can use. It might be that a lead provider with a lower initial conversion rate but whose leads offer more cross-sell opportunities is ultimately the one you should invest your budget in.

To read the original, click here.


LeadPoint Connect

LeadPoint now offers new ways for buyers and sellers to interact across our state-of-the-art lead generation platform! Click to read more

Defined by Quality

We offer an industry leading robust quality verification process for leads. Learn how we deliver only the highest quality leads. Click to read more