Bill Rice of Kaleidico sheds a little more light on the LendingTree price increase and their overall goals. According to Bill’s post LendingTree confirms that the price increase was implemented to detract or force off weaker performing lead buyers. Bill also elaborates on LT’s goals of improving the consumer’s experience by using a scoring assessment they call the Net Promoter Score (NPS).

Based on Bill’s post it seems as though LT is focusing on the “Closers” on the network, which is fine from a LT point of view. This will clearly improve their network, LT customer experience and possible the buyer experience. My concern, as I mentioned in the comment on the post is that I think there is a fine line of success and failure with LT when drawing a line in the sand and saying “if you are a closer we want you on the network and if you are not we don’t want you”. The upcoming price increase pushes many new lenders or even mid tier lenders to other lead providers because of the risk. Even top producing buyers are going to feel the effect of the price increase and may choose to leave the network. I has I pointed out in the previous post a buyer MUST convert LT leads CONSTANTLY at 10% to make LT a viable option for allocating spend.

LT lead increase in my opinion was an over adjustment and may come to haunt them down the road. There new focus on the customer experience is very promising however and I look forward to see more providers take this outlook.

I would also encourage LT to focus on the education of its buyer as well. With this increased pressure to convert, via the price increase I would like to see LT implement lead buyer education program and not half heartily either. Instead of just raising prices to push under performing buyers off the network why not work to improve the network through education and possibly free tools.

I must say that it is promising overall to see a lead provider actively making an effort to improve lead quality and the consumers experience.

Kudos LendingTree.

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