Sunday, 11 November 2012

Pros and cons of online lead management and lead generating services

Success rate of any organization depends on the amount of business or sales leads it gets on a regular basis. Over the past decade several new industrial sectors have emerged. Most of these sectors are involved in the process of generating strong business leads or sales leads for their client companies. It is a common practice for multinational companies and business enterprises to appoint business processing units to channelize valuable leads from diverse means and sources. Lead generation is basically a chain of procedures that focus on collecting and processing consumer/costumer data. Online data management system has definitely simplified the entire lead generation process. Some of the popular online lead management companies deal with auto leads, real estate, life insurance and Medicare leads.

Lead generating companies usually follow a set of marketing strategies that are aimed at attracting people. They utilize various techniques like online ads, email marketing, phone marketing and so on. For instance, auto lead generators offer free information service to browsers looking for auto quotes and dealer info. On the pretext of offering free car quotes they collect and sell the leads to auto dealers and auto loan services. There are several private auto finance firms like Leads Bureau that are linked with big networks of lead management and processing portals. Usually when a prospective auto buyer finds it difficult to get loans from banks and financial institutions, he takes help of online sources to find private money lending agents and financers that offer loans to people with low monthly income or even an unimpressive credit history. Leads Bureau is one such company that offers loans to bankrupt and low income group customers.

Knowing the needs of a person is the major part of lead generation. Primarily, people search online for information like prices, quality, rates and brands. While providing assistance to these visitors or members these websites gather their personal and contact information and sell them to companies and services looking for leads. A single business lead can act as a prospect customer to several services and sectors in an industry. For instance, if a person wishes to have a health insurance policy he is considered as a sales lead by health insurance companies, insurance agents, LIC agents and so on. So, companies from any of these sectors can contact the person and try to offer their services.

Online lead generator systems have not only assisted companies and businessmen but they have also contributed to the success of several smalltime agents and consultants. Many LIC agents and insurance consultants search online for life insurance leads and Medicare leads. They get to buy the leads for a nominal price that ranges between 1.5 to 2.5 US dollars per lead.

With the spread of internet networking systems, tapping customers and business leads has become quite fast. However, the competition has made the whole process less reliable. Half of the leads are expired or invalid or simply too old. Nowadays, most of the health insurance and auto service companies appoint their own lead generating agents to find reliable leads.