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Research Outline

Prepared for Jatish S. | Delivered May 12, 2021

Financial Institution Leads Cost

Goals

To understand the cost and commissions paid by financial institutions in the last 3 years to procure:
  • Leads
  • Leads that buy a financial product or service.
The ideal report will be an Excel sheet containing a breakdown of cost per leads for various financial institution product and services.

Early Findings

Our initial research suggests that data on the breakdown of fees/commissions paid by financial institutions to obtain leads in the last 3 years is limited or unavailable in the public domain.

Financial Industry Lead Cost

  • Estimates on the cost of financial industry leads vary widely.
  • GoConvert estimated the cost of leads in various industries using "aggregated real-time customer performance and 1,672 benchmarks from 166 other sites and reports" and reported that the cost of lead in the financial service industry is between $51 and $100.
  •  Linchpin, a digital marketing consulting firm, projects that the cost per lead in the financial service industry in 2021 will be between $44 and $272, with an average of $166.
  • Adbirt, an online CPA advert platform, revealed that the average cost per customer acquisition in the banking/insurance industry is $303.
  • Adbirt's data also shows that the cost per customer acquisition in the financial service industry is $175.
  • Finding reliable and accurate cost per lead data is generally difficult as financial services generally do not reveal this data and estimates even from reputable companies may be way off.
  • For instance, in 2017, Hubspot estimated that the average cost per lead in the financial service industry was $272. However, analysts such as Ron Shevlin, Director of Research at Cornerstone Advisors, argued that the estimate was astronomically high and unrealistic given the marketing budget of financial services such as Credit Unions.

Summary

  • We were able to find some estimates of the financial service cost per lead and an estimate of the customer acquisition cost in the industry during our initial research.
  • In general, our initial research suggests that data on the breakdown of cost per lead/buyer leads or commissions paid by financial institutions to obtain leads in the last 3 years is likely unavailable in the public domain.
  • To gain more insights on cost financial services, especially fintech services, we recommend a slightly different research path that may yield more actionable data and insights. Details on our recommended research paths have been provided in our proposals below. Please select one or more proposals from those provided.