What Are Lead Aggregators and How Do They Work?
QuoteDiscover how lead aggregators are hampering the lead generation process by collecting, compiling, and reselling leads from unreliable sources.
Lead aggregation has changed the way in which leads are bought and sold. This should make the process less complicated because separate leads are collected from alternate sources and are sold at higher rates to the clients.
But how much of this is true, and how much are the companies concealing some serious disadvantages? That is exactly what we shall do – figure out what lead aggregators are and why you should probably avoid them.
What Are Lead Aggregators?
Lead aggregator is a shorthand for a company that gathers leads from various sources, such as online forms or social media, and resells them to businesses. Although they hold out the possibility of benefiting the parties for whom they are acting as the ‘go-between’, that benefit comes with a price. While this is beneficial and quick, it is possible to lose out on quality leads. Further, as intermediaries, they often explain subordinate factors.
How Lead Aggregators Operate
1. Data Collection:
Lead aggregators gather leads that they purchase from other sources and use their own data or social media websites. Unfortunately, such a wide data collection provides mostly irrelevant or old leads which actually cost time and efforts.
2. Data Enrichment:
Organizations that aggregate data usually do not stop on the fact that they have already collected certain data, in many cases, they need to enhance it by including more specific attributes, geolocation or industry-focused demographics for example. But this process sometimes is not followed through creating faulty information that undermines the quality of the leads.
3. Data Filtering:
Owing to the constant need in every organization to clean, process and amend the business leads, filtering leads can be expected to serve that purpose efficiently. Most aggregators deploy more generic filters that will in most instances miss out on the details of the particular audience, thus leads from the aggregator and the business do not match.
4. Lead Distribution:
These filtered leads are then sent out through different channels to the potential buyers as the aggregators have many times primed to do. However, the way the aggregation of leads was done as well as how quality control was executed upon the distribution massively differs, which internally impacts on the outcome. To add, overhead 87% increase in conversion rate using automated lead distribution method.
Drawbacks of Using Lead Aggregators
1. Questionable Lead Quality:
The practices of lead aggregation remain to be not only popular but also widespread as far leaders are concerned. Aggregators tend to produce leads that are a collection of multiple, sometimes, all sources which leads to low leads quality. These leads are less focused or less interested leading to lower conversion.
2. Increased Costs:
Apart from the normal approaches to lead acquisition, there are organizations that practice lead generation on a pay-per-lead. Despite several aggregators practicing this approach there are certain limits that are practically reached, especially when the quality of the leads is low. Such means making lead generation expensive in the end, which is not the case when other means are employed.
3. Lack of Security:
Data from different sources is needed for aggregate marketing which poses a threat to the data privacy and CPA or GDPR compliance. There is the danger where the lead data might not be securely stored as it ought to be.
4. No-Hassle Connection with CRM tools and Marketing Programs:
Not all aggregators are as easy to integrate into the current structure of your CRM or marketing systems. Inability to have an easy connectivity of lead trackers to the respective sources causes wastage of time and extra efforts in the monitoring of the leads.
What to Be Skeptical About When Choosing a Lead Aggregator
1. Opinions and Expectations:
Avoid any aggregates with bad reputations or shady ones. Most platforms will guarantee you quality leads only to let you down, while some have bad reputation building practices.
2. Data Privacy and Compliance:
Though many aggregators work with customer data, sometimes in bulk, they do not make considerable efforts for data privacy. What these regulations entail for most of the companies is just a box-ticking exercise, which makes your lead data and consequently your company susceptible to invasions and litigation.
3. Integration Capabilities:
Aggregators (app vendors) usually state that the integration will be seamless, however, more often than not, the systems will fail to integrate into the client’s CRM and other marketing clouds. Misinformation is an agile process that is present within organizational structures and no one wants this translation seen in lead nurturing strategies.
4. Cost Structure:
Although advertisements from some aggregators often promise low costs, the outcome is very different. How low can this price be? Then, in no time, you get leaks of cash as you realize that there were unmentioned charges, low-quality leads, ineffective processes that are charged within greater than what you imagine. Beware of the pricing model and management of their costs, try to prevent further infestations of unexpected prices with empty jars of low expectancy results.
Edited by vereigenmedia
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