Souqalmal.com’s Ambareen Musa writes on Communicate Middle East why financial institutes are moving to a cost per lead model to get a better return on investment.
Many financial institutions no longer want to harass random people over the phone – people whose numbers they’ve picked off a vast database of names. Instead, they want to refocus their energy and spending on talking to the “right customer”.
UAE banks and insurance providers are now more focused on the Return on Investment (ROI) they get out of their marketing spend. With over 50 banks in the UAE slugging it out for the same customers, how they reach those customers has to be cost-effective. And more importantly, it has to secure results.
This is why paying for a customer who is at the shopping stage and in the market for a product banks providers to offer has become extremely valuable as they increasingly demand tangible returns on their investment. They want performance-based approaches – channels through they can track conversions and, that’s exactly what the CPL (cost-per-lead) model offers, allowing banks and insurance providers to only pay to speak to the right customer.
However, this is not necessarily the answer to all the providers’ marketing woes. Our partners, for example, currently experience a conversion rate of between 5 percent to 13 percent. This figure varies among the providers, as it is highly dependent on the bank or insurer’s ability to call back the customer, the competitiveness of the product and other criteria put in place (for example, “is your employer an approved company?”).
To put it simply, moving towards a CPL model can only work if the sales person making the call back to the interested customer has the ability to close the sale and if the product is as advertised.
For the full article go to Communicate.