Please see our PowerPoint presentation from LeadsCON 2011 - The Silver Bullet: Skills-Based Routing - So you came to LeadsCon to find an elusive silver bullet for profitable lead acquisition, a way to get significantly more value out of your existing lead spend? Leads360 shares how sophisticated lead buyers utilize skill-based routing (SBR) to achieve double-digit conversion gains, in some cases overnight, by making their leads work hand in hand with the skills of their sales force.
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 email@example.com 310-765-7125
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