Background
Our client, one of the largest non-bank mortgage lenders in the United States, with a workforce of over 10,000 employees nationwide, was facing significant challenges in their lead acquisition strategy. The company was investing millions of dollars annually in purchasing leads, but their conversion rates were disappointingly low, resulting in substantial financial losses.
Challenges
➢ High Volume of Open Maintenance Jobs: The site had hundreds of open maintenance jobs, leading to delays and inefficiencies.
➢ Low Conversion Rates: Despite the considerable investment in leads, the conversion rates remained below expectations, leading to substantial financial losses.
➢ Inefficient Lead Segmentation: The leads were not effectively segmented based on various attributes, resulting in a lack of targeted approach in lead acquisition.
➢ Lack of Predictive Model: There was a lack of a predictive model to identify the most profitable leads, leading to indiscriminate purchasing without a clear understanding of potential conversion rates.
Implementation
➢ Comprehensive Data Analysis: Our team conducted a thorough analysis of the company’s lead acquisition data, examining the conversion rates of hundreds of thousands of leads over a two-year period.
➢ Segmentation Strategy: Utilizing advanced data analytics techniques, we properly segmented the customers based on all known attributes, including demographic, financial, and behavioral factors.
➢ Predictive Model Development: Based on the insights gathered from the data analysis, we developed a sophisticated predictive model to better forecast which leads were likely to result in profitable conversions.
➢ Negotiation with Vendors: Armed with the data-driven insights, we renegotiated with lead vendors, presenting them with evidence-backed information on the profitability of leads. As a result, we secured a deep discount on the price for less profitable leads while ensuring a steady supply of high-converting leads.
Results
➢ Increased Profitability: By strategically purchasing leads based on the predictive model, the company experienced a significant increase in profitability, with millions of dollars generated annually. Gross profit per lead increased from $235 to $413 per lead purchased.
➢ Improved Conversion Rates: The targeted approach to lead acquisition led to a notable improvement in conversion rates, from 2.3% to 3.7%
“The consulting team’s data-driven approach revolutionized our lead acquisition strategy. Not only did they save us millions of dollars, but they also helped us achieve higher conversion rates, enhancing our bottom line significantly.” – CMO, Leading Mortgage Lender
“Working with the consulting firm was a game-changer for us. Their expertise in data analytics and negotiation skills helped us turn our lead acquisition challenges into a profitable opportunity. We are extremely satisfied with the results.” – Head of Marketing, Leading Mortgage Lender Top of Form
