Leads360 Skills Based Routing Presentation from LeadsCON 2011 by leads360

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									Skill-Based Routing – A Case Study
          Leads360 & Wyndham Capital
Increase conversion through optimization

   • HOW did we do this?

   • We DID NOT:
         Spend any additional money
         Change any lead sources or marketing mix
         Hire more agents
         Change sales process


   • WE DID utilize Skill-Based Routing


                                                     2
What is skills based routing?
                              INCREASING ROUTING SOPHISTICATION



               ROUND-ROBIN                    SELECTIVE                SKILL-BASED




  WHAT &   Leads routed sequentially    Leads routed based on         Leads routed based
   HOW             to agents            organizational structure         on rep skills


                                           Match organizational
                                       structure e.g. CA leads to a
   GOAL    Fairness, load balancing                                   Maximize revenue
                                          local office, regulatory
                                                compliance


   Distributing a lead to a rep that is best suited or skilled to
       convert that lead based on historical performance
                                                                                           3
What it is… and what it’s not

  • IT IS …
        … about skills usually of the ‘intangible’ kind such as geographical
         affinity or experiential similarity etc.
        … a skill quantified by individual conversion rate for a subset of leads
        … assumed that a skill is constant regardless of the volume of leads
         received
        … a skill that is statistically significant and consistent over time
  • IT IS NOT …
        … about distributing more leads to the best overall rep
        … about distributing leads to reps that are certified or licensed to
         handle a certain kind of lead
        … aimed at increasing a few selected reps performance, rather, it is
         executed only when it benefits the entire organization
How to setup a skills based routing program

 STEP 1:                         State
 Select attributes                       Loan type
                                                Loan Amount
 and values

  STEP 2:
  Select to reps for each
  attribute

       STEP 3:
       Run test and measure
       impact

                                                         5
Step 1: Choose attributes and values

   Sub-Step A:    Chose attributes that      Sub-Step B:   Chose attribute values
                  display a wide                           that account for a
                  difference in                            medium percentage of
                  conversion between                       leads and are identified
                  best and worst reps                      at time of lead creation




                    We ended up with 5 attribute/value combinations:
                State = North Carolina
                Loan Amount = $100-200k, $200-300k, $300-500k
                Loan Type = Refinance Loans


                                                                                      6
Step 2: Select top reps based on performance
   Reps arranged in decreasing order           TOP REP SELECTION CONSIDERATIONS
    of Conversion performance for
        selected attribute/value        Statistically significant conversion performance
                                            1/10 is not the same as 10/100 even though both equal 10%
                                        Should have consistent performance over time
                                        Should have at least a 25% advantage over the team’s
                                         conversion rate for leads with selected attributes
                                            Example: if the team converts NC leads at 4%, top reps
                                             identified for NC should convert NC leads at a minimum of
                                             5% or higher
                                        Should be outperforming own average conversion
                                         performance on selected attribute
                                            Example: if a rep’s overall conversion rate is 3%, their
                                             conversion rate for the selected attribute/value should
                                             exceed 3%
                                        A rep can be selected for more than one
                                         attribute/value
                                        Number of reps selected for any attribute/value should
                                         exceed ≈ 10 or the attribute/value should be scrapped
                                         for skill based routing



                                                                                                         7
Step 3: Run test and analyze

      CATEGORY                                            DETAIL
  Industry                     Leads360 Mortgage Client – Wyndham


  Time period                  45 days, January – mid-February 2011


  Leads tested                 Internet leads posted in real-time to Leads360


  Details received for leads   Contact info, loan type, loan amount


                               •   Period exactly a year ago (to test for seasonality)
  Comparison periods
                               •   Preceding 45 days (to compare recent market trends)



                                                                                         8
The results were staggering… in a good way

                                      Preferenced reps             Non-Prefernced reps                    Overall
                               250%
   IMPROVEMENT IN CONVERSION




                                                                                           201%
                               200%



                               150%



                               100%     86%
                                                                                                                        79%
                                                                61%
                               50%

                                                   12%
                                                                                                          3%
                                0%
                                      Improvement over previous year                  Improvement over preceding 45 days


            NOTE: To protect our client’s competitive information, we are only presenting the relative improvement in performance
How does that translate into revenue?
     A 79% improvement in conversion for a 100-rep shop can translate into…


            METRIC             MORTGAGE    INSURANCE   EDUCATION   YOUR INDUSTRY

 Average Conversion Rate          3%          5%          7%

 Leads/Rep/Day                     5           5           5

 Average Revenue/Closed Lead    $2,000      $1,000      $5,000

 Annual Revenue – BEFORE        $7,350 K    $6,125 K   $42,875 K       $0 K

 Annual Revenue – AFTER        $13,157 K   $10,964 K   $76,746 K       $0 K

             GAIN               $5,807 K    $4,839 K   $33,871 K       $0 K
Risks and other considerations

  • Potential risks
        Decrease in the following performance metrics:
             Speed-to-Call
             Speed-to-Contact
             Contact Rate
        Load balancing issues (too many OR too few leads per rep)
  • What we actually encountered
        Front-loading of leads for the preferenced reps…which led to a
         ‘perceived’ imbalance in load balancing
             The number of leads/rep were constant before and during the test
             BUT, because the preferenced reps were getting leads based on the preference of
              identified skills and would exhaust their daily quota of leads sooner, it was perceived
              that they were receiving more leads
Baseline monitoring during test

   To ensure performance was not affected negatively, the
   following metrics were monitored at a daily/weekly level

       Leads/Rep/Day (Mean, Median, Standard Deviation, Min, Max)

       Time to distribute a lead (Mean, Median, Standard Deviation, Min, Max)

       Time to first action (Mean, Median, Standard Deviation, Min, Max)

       Speed-to-Call (Mean, Median, Standard Deviation, Min, Max)

       Speed-to-Contact (Mean, Median, Standard Deviation, Min, Max)

       Contact Rate
Any questions?

 • To understand more about the study and decide if Skill-Based
   Routing is appropriate for your organization, please contact
   Leads360 at:

    Jeff Solomon
    jsolomon@leads360.com
    310-765-7125

								
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