How lead quality affects protection persistency
A cheap lead that lapses early can cost more than an expensive one that stays. Lead value only becomes clear months after the sale.
Not all leads are equal
Protection leads come from many sources: comparison sites, paid search, social media, affiliates, mortgage referrals, existing customers and personal recommendations. They differ not only in cost and conversion but in how long the resulting policies stay in force. Customers who were actively looking for cover, who understood what they wanted and who chose to speak to an adviser tend to keep it longer than customers who were contacted unexpectedly or bought on price alone.
Why intent matters
A customer who has thought about their needs, reviewed their options and asked for a conversation arrives with a reason to buy. That reason is still there months later when the premium leaves their account. A customer who was persuaded during an unexpected call may have less commitment to the decision, and is more likely to cancel when money is tight or when someone offers a cheaper alternative.
Measuring true lead value
Cost per lead and conversion rate tell only part of the story. A fuller view includes the commission earned per lead, the share of policies still in force at twelve months, the clawback per lead and the complaint rate. Net commission retained per lead, after clawback, is the most useful single measure. It often changes which sources look most valuable.
The role of the sales process
Lead quality and sales process interact. Even high-intent leads can lapse if the sale is rushed, the recommendation poorly explained or the handover handled badly. Low-intent leads can produce durable business if the adviser takes time to understand needs and the customer is supported after the sale. Persistency data by lead source and by adviser together shows where each is helping or hurting.
Pre-sale engagement
Engaging customers before the sales conversation can raise intent and improve the quality of the conversation. Digital journeys that let customers explore their needs, indicate their existing cover and shortlist options before speaking to an adviser mean the conversation starts with a customer who has already decided they want to talk. Advisers can then focus on advice rather than discovery.
Post-sale support levels the field
Whatever the lead source, consistent post-sale support reduces avoidable lapses. Across anonymised Adviser.ai client data, customers who complete a post-sale check have been around 50% less likely to cancel. For lead sources with weaker persistency, the improvement can be particularly valuable.
Acting on the data
Review net commission retained by lead source quarterly. Shift spend towards sources that produce durable business. Work with lead providers on quality where persistency is poor. Adjust sales processes for lower-intent sources, and make sure post-sale support reaches every customer. Over time, the mix of business should become more profitable even if headline volumes change little.
Talking to lead providers
Lead providers are more likely to improve quality when they can see the results. Sharing anonymised persistency and clawback data by source, alongside conversion, gives a clearer picture than complaints about lead quality alone. Some distributors build persistency into their commercial terms with lead providers, so both sides benefit from leads that produce lasting business.
An illustration
Consider two sources that both cost the same per policy sold. If policies from the first are 90% in force at twelve months and policies from the second are 75% in force, the second source will generate considerably more clawback and much less retained commission. On a cost-per-sale view the two look identical. On a net-commission view they are very different. Running this comparison across every source is one of the quickest ways to improve the profitability of marketing spend.
Questions to ask
Which lead sources produce the most durable business? Which carry the most early clawback? Are some sources better suited to particular products or advisers? Does pre-sale or post-sale engagement close the gap for weaker sources? The answers show where to spend and where to support.
Consumer Duty and lead generation
The Consumer Duty applies to how customers are found as well as how they are advised. Firms should consider whether lead generation practices, such as unexpected calls or aggressive follow-up, risk poor outcomes for some customers. Approaches that let customers express genuine interest and choose when to talk are easier to justify, and tend to produce business that lasts longer, which aligns the commercial and regulatory case.
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FCA: FG22/5, final guidance on the Consumer Duty
Adviser.ai figures are drawn from anonymised client data and are illustrative. Results vary by firm, product and implementation.
Last updated 27 October 2026