When it comes to lead generation, the first question we often get from advisors is, “Are these leads any good?” The answer we typically give is, “That depends on your process,” because 90% of the success of any lead program is determined by the advisor. This is why we often see two advisors working the same lead program and each having drastically different outcomes. The following analysis, based on national averages, should give you an idea of what to expect when working leads.
Average ROI (Return On Investment)
The average financial lead conversion rate typically falls within the range of 5-8%. However, top performers can achieve rates as high as 23%.
The overall average is closer to 4.3%. This will depend on the type of lead program and how the leads are generated. For example, there are different conversion rates for cold leads and set appointments. Smart Asset is arguable one of the largest financial lead generation companies. They have a broad consumer – facing brand that can help with conversion and the focus on content marketing as their primary strategy. That being said, they say their average conversion is around 5%.
Factors Influencing Conversion Rates
- Lead Quality
Leads generated through inbound marketing channels (e.g., content marketing, SEO) often have higher conversion rates, averaging around 3% to 8%, due to their engagement level and interest in the brand’s offerings.
- Sales Cycle Length
Longer sales cycles in financial services can impact conversion rates.
- Sales Strategy
Effective strategies, tools, and follow-up techniques can significantly improve conversion rates.
- Marketing Channels
Different marketing channels, like email marketing, can have varying conversion rates.
- Target Audience
The specific target audience and their needs can influence how well a particular marketing approach performs.
Specific Conversion Rates
- Warm Market Email Marketing
The average conversion rate for email marketing in financial services is around 5.8%.
- Landing Page Conversion
A good landing page conversion rate is generally considered to be 2% to 5%.
- Lead to Opportunity Conversion
In financial services, the average lead-to-opportunity conversion rate is around 5.4%. This means that for every 100 leads, approximately 5.4 become qualified opportunities. However, conversion rates can vary significantly depending on factors like the lead’s source, sales team performance, and the specific product or service being offered.
Key Takeaways
- A 2-5% conversion rate is considered average for many financial services businesses.
- 6-9% or higher: is considered above average.
- 10% or more: is generally considered a good conversion rate.
- Top performers in the financial services industry can achieve conversion rates of 20% or more.
At Quantum, we only work with lead and appointment setting companies that have proven to be successful with other advisors. Again, success depends almost entirely on the advisor’s process. If you are ever tempted to spend money on a lead program, call us first. We are consultants in this area and can help you determine if a lead or appointment program is a fit for you and your process. Call us at 800.440.1088.
Sources:
https://www.ruleranalytics.com/blog/reporting/financial-services-marketing-statistics/
https://www.zendesk.com/blog/lead-conversion/
https://databox.com/lead-generation-statistics
https://conversioncopyco.com/high-converting-lead-magnets/
Scott spent 20+ years as a large market radio host, on-camera news talent and VP of content creation. He helps develop and manage all advisor client acquisition strategies for Quantum, including live events, digital, social and legacy media campaigns.
