30 PROTECTION TOMORROW
Checking the quality and value of the leads is paramount in order to ensure that the returns justify the outlay .
In addition , from a good practice perspective
Checking the quality and value of the leads is paramount in order to ensure that the returns justify the outlay .
1 Avoid ‘ pop up ’ providers advertising high conversion rates at low costs – take a look at Companies House
1 Check refund terms and quality compensation policies – do they give you confidence ?
1 Ask for a sample batch of data for you to ‘ test ’
1 Can they recommend existing FCA user firms you can get a recommendation from ?
1 Run a google review check and see what comes back as a result .
When it comes to ongoing relationships ensure you :
1 Maintain appropriate back office record keeping system in place to monitor the success and profitability of this lead source
1 From a compliance perspective , look at maintaining new business registers , T & C supervision ( KPIs , call monitoring and observation , file checks etc .) and appropriate post advice client feedback
1 Maintain regular due diligence on the firm and its processes .
Where feasible work to five main KPIs :
1 Sales revenue derived from lead generation services
1 Cost of customer acquisition from lead generation services
1 Gross and net profit margin ( after normal costs such as wages / phone / office )
1 Quality metrics ( loss rates ) 1 Customer satisfaction feedback . Providers will look for the following : 1 Policies not proceeded 1 Lapses in years 1 – 4
1 Confirm Yours Application Details ( CYD ) return and amend rates – a low return rate could imply that customer engagement is not strong
1 Application processing rate – a combination of quick processing and low ‘ confirm your details ’ return rates with high levels of amends could imply that the business is being pushed through . It is very likely that there will be customers with incorrect details supplied that could result in future claim declines
1 Non-disclosures and the proportion of policies where the BMI is just under the referral point .
From a provider perspective , each can be scored and an aggregate score given for each firm , which they will use to monitor and manage the relationship .
If after consideration you decide that a lead generation firm is not the way forward for you , what where Gary and Steve ’ s top closing tips ?
Gary : Take some time to look at your existing ‘ untouched ’ client bank , decide whether it is a good time to revisit previous advice and check for changes in circumstance and client needs and objectives , as these can change over time and require different protection outcomes ; for example – a new house , children , requirement for business protection , relevant life and / or trusts .
Steve : Remember the acronym HMRC : H Do your Homework
M Monitor your spend , activity and results
R Review your data ( KPI ’ s ) C Check your due diligence regularly
This is only a broad overview of the discussion points which took place on the day as there was much free flow conversation . The session is available to watch again in the SimplyProtect Hub .
If you have any queries in this regard , please feel free to contact the Compliance Technical Helpdesk or use a compliance visit where a member of the compliance field team can assist you in putting together appropriate due diligence , monitoring and supervision programmes , which can compliment your regular compliance health checks .