As HFD becomes more sophisticated in our approach to measuring success, we want to ensure our providers and partners understand every part of the application journey.
First, it’s important to understand what each application stage in the conversion funnel represents.
- Starts= Minimum applicant information has been entered by the provider/partner through Easy Apply or an integration.
- Submitted= The applicant has completed to the underwriting step in their application flow
- Approval= The applicant was approved and has been presented with offers
- Activated= An offer has been selected and the patient has completed the checkout
Next, we need to know, how conversion is measured. To put it simply, we look at 3 key areas and an overall conversion rate that are attributed to the application stages.
Pitch Rate
The Pitch Rate measures how effective the treatment coordinator “sells” HFD financing to the applicant.
Low Pitch Rate could mean:
- Low treatment coordinator confidence level on pitching the financing.
- Poor visibility or messaging of the in-office marketing collateral.
- Technical issues with the hand-off between the treatment coordinator and the patient.
Approval Rate
The Approval Rate measures the percentage of applicants that received an approval after underwriting.
Low Approval Rate could mean:
- High fraud, bankruptcy, or duplicates
- Underwriting outage with TransUnion
- Lower credit mix applying due to secondary or tertiary financing position (for non 100% approval programs only)
Take Rate
The Take rate measures the attractiveness of the offers presented to the applicant. Of the offers presented, how many applicants selected an offer and completed checkout. A payment plan is now active.
Low Take Rates could mean:
- Sticker shock: Down payment requirements could be too high for the population
- Amount financed could be causing monthly payments to be too high
- Patients may not trust HFD due to lack of education on the business
- A secondary or tertiary financing position could be supplying HFD with poor credit mix consumers that have a harder time affording the payment
Conversion Rate
The Conversion Rate measures the percentage of started vs. active applications. It is indicative of the overall success of the program.
Why is it important?
– Conversion Rate is the all-inclusive measurement that factors in Pitch, Approval, and Take Rate measurements. It can be used to forecast activations by the total starts the provider is facilitating.