Lead generation was in the news recently for the wrong reasons. With the Office of Fair Trading closing 19 unlicensed lead generation websites in April, it will probably make many advisers think twice before buying leads.
While these sites were shut down due to regulatory breaches it is worth looking at the wider issue of lead quality. Irrespective of the rules, lead suppliers live and die by the quality of leads they provide.
A few years ago when the mortgage market was buoyant and advisers were in abundance perhaps firms could afford to sell leads regardless of quality and move on to the next buyer.
But in today’s market, lead suppliers need high customer retention to remain profitable and this can only happen if buyers generate healthy returns on their investment.
Lead quality is one of many factors affecting a lead generation campaign, which is in part determined by the websites and marketing used to generate leads.
If consumers are tricked into leaving their details or don’t know what they are applying for, when they are contacted by the lead buyers they will not be interested in the products and conversion rates will be low or non-existent.
As a result, brokers will stop buying leads and the provider will run out of customers. It won’t take long for a poor quality supplier to be exposed.
Lead providers interested in building a successful business must focus on lead quality above all else.