This article is a continuation of our two-part series, the first part was published in a separate post and covered the topics “Stop Using Conversion Rates to Define Lead Quality” and “Buy More Granularly”.
3. Pay Attention to Win Rates
Many companies have never heard of a Win Rate before. For many businesses who are familiar with purchasing internet leads, you have likely heard of Ping/Post software. This software is not required to purchase internet leads, but it is very helpful if you have it. Ping/Post software allows the lead buyer/company to set pricing (and pricing by state), filtering, demographics, etc. on their end, and essentially place automated “bids” on leads from lead vendors. If you don’t use Ping/Post software, you will need the lead vendor to place all of the desired filters on their end to receive the leads you want. Ping/Post software puts most of the control in the user (buyers) hands regarding lead campaigns and management, not having to communicate changes to the vendor every time an adjustment is needed.
Whether you utilize your own Ping/Post software, or you rely on your lead vendor to setup your filtering, you should be able to track your Win Rates. A Win Rate is a metric that measures the amount of leads that were available in your footprint vs. the amount of leads that you won (were the highest paying “bidder”). This measures how competitive your CPL is. Let’s say there were 1,000 leads available that matched your footprint (states, hours, etc.) but you only won 500 of those leads, your Win Rate would be 50%. If your Win Rate is too low, this might suggest your CPL is too low and your pricing is not competitive enough to compete for lead volume. However, if your Win Rate is too high (like 95% or 100%), that likely means you are paying too high of a CPL and overpaying. Most companies find that somewhere between 80-85% Win Rate is the sweet spot and gives them the biggest bang for the buck regarding lead pricing. It is also important to look at Win Rates not only on an overall campaign level, but also per state, as pricing and performance by state often vary greatly.
4. Optimize Frequently
Don’t fool yourself into thinking you can set it and forget it. The lead generation and insurance sales industries are both rapidly changing and very dynamic. Sales performance, conversion rates, traffic acquisition costs, lead volume, and commissions to name a few, are constantly changing and you should review your campaign performance and CPL lead pricing at least monthly. Not all lead vendors help their clients optimize campaigns the same way, but a good lead vendor will work closely with you, request disposition reports (at least monthly) and help suggest changes that you may need to make in order to optimize your overall campaign performance and boost your bottom line.