Smart steps to drive down your cost per funded loan.

Report: The State of the Industry 2019

Most lenders believe cost-per-funded loan is a critical metric in customer acquisition. Lowering that cost is the challenge. Buying leads through the PX platform addresses it directly, creating clear visibility into performance and expanding the pool of sources that a lender can manage — two prominent factors that drive increased ROI.

Learn more in the 2019 State of the Industry Report.

Lack of Visibility Results in Poor Performance

According to study findings, 82% of lead buyers are not hitting their ROI objectives, and on average, they fail to reach even half of their target. This directly correlates to a lack of visibility within the market, where those who have higher levels of visibility have higher levels of success.

For survey respondents who do reach their target ROI, end-to-end measurement of their campaigns is a prominent factor. Those who are able to consistently see and measure conversion throughout their sales funnel are 2-3X more likely to hit their ROI.

“This survey identified many of the issues and opportunities facing our industry today,” said Frans van Hulle, CEO and Co-Founder of PX. “The good news is that the issues we face can be addressed with technology that is already accessible. Greater transparency, better source management, and consistent end-to-end performance measurement can all be serviced with tools that are currently available.”

More Publisher Options Improves Performance

The research findings show buyers who hit their ROI objectives tend to manage far more sources than those who do not. Among lead buyers, those who manage more than 10 sources double their likelihood to hit their ROI goals; those managing 40 or more sources hit their target 93% of the time.

Unfortunately, the survey shows that two-thirds of the market are managing 10 or fewer sources in their campaigns.

“There is a strong correlation between the number of sources managed and success in hitting ROI goals; so we need to figure out a way to drive this number higher across the board. Managing fewer than 10 sources is not a path to success, so as an industry we need to address this,” commented van Hulle.

By the numbers:

Additional findings from The PX-Leadscon State of the Industry Report:

Compared to two years ago:

  • 71% of respondents agree that there is more opportunity to scale
  • 77% said that there is more information available for buyers
  • 57% agreed that the process for buying leads is much more effective in generating customers
  • However, only 42% agree that the leads they buy are much more effective at generating customers

When asked to rank their challenges, respondents said that converting leads to sales was their greatest challenge:

  • Increasing lead-to-customer conversion – 4.74 (out of 6)
  • Improving the quality of lead data – 4.32
  • Increasing the quantity of leads generated – 3.54
  • Reducing the cost to acquire leads – 3.46

For lead sellers, maximizing revenue was identified as their number one challenge:

  • Maximizing revenue – 5.71 (out of 7)
  • Coverage – 4.71
  • Managing partner demand – 4.38
  • Payments and Cash Flow – 3.83

For a copy of the complete report please click below.