Loan Origination Company Doubles Conversions While Slashing Costs

Success Story

By adding Identity Check to the top of their lead funnel, a leading loan origination company is now able to weed out their worst-performing leads early on, which increases conversion rates and lowers their cost per fund.

Loan origination companies are in the business of managing leads for their clients – investment groups – by purchasing leads from lead providers and aggregators, vetting them, and then passing them on to the portfolio operator. In this automated process, after a customer fills out a long-form application, the loan origination company screens it for a number of underwriting requirements (such as state of residency), then runs it through a “scrub tree,” to check identity. If everything checks out in both, within thirty seconds the company sends a message to the lead provider greenlighting the purchase. The lead is then sent on to the portfolio operator for consideration.

One loan origination company believed their automated purchasing process could be made even more efficient by working with Whitepages Pro. Purchasing leads is a major cost center, especially when only a small percentage of those leads actually convert into loans with the portfolio operator. They needed a way to weed more bad leads out of the process.

The company’s Operations Manager explains how they added Whitepages Pro at the top of the scrub tree:

Our hypothesis was that adding Whitepages Pro would increase conversion rates. In order to test that, we kept everything status quo with our underwriting process. We then decided the best solution would be to obtain data from Whitepages Pro prior to our underwriting. We then met with the Whitepages Pro team, who helped us identify key indicators to automatically cut bad leads and increase our conversion rates. Right now we’re seeing great performance in improving our customer acquisition costs.

15%

Cost per fund dropped 15%

Prior to implementing Whitepages Pro, the
company’s average cost per fund was $109. After
implementing Whitepages, it dropped to $92—a savings of 15% even after accounting for the additional cost of Whitepages Pro.

10%

Four key indicators cut 10% of bad leads

The Whitepages Pro team helped this loan
origination company identify four key indicators that a purchased lead was not likely to convert,
reducing their lead purchases by 10%—and
improving conversion rates and cost per fund.

2x

Conversion rates more than doubled

Conversion rates improved across every portfolio
the company works with, but with one in
particular, results were eye-opening. The company
went from purchasing an average of 163 leads to
113 leads a day, while the conversion rate more
than doubled from 15% to 30.22%.

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