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Customers -- at Any Price

I received a press release a few days ago announcing a new pay-per-lead service. Consumers sign up to receive information on product types, provide contact information, and, if they choose to, give other details to help match their specific needs. Companies interested in reaching those individuals bid for the leads. The four highest-bidding companies are given each lead, so prospects can do some comparison shopping. My first thought was, companies that contact a prospect are simply the highest bidders, not necessarily the most appropriate for that consumer. Perhaps company five is really the best for a particular individual, but simply doesn't have as big a budget. Although the site does offer consumers a choice, it many not be the right choice. It reminds me of those listings in local area publications of the "best" whatever (party venues, restaurants, etc.), but only the places that pay get a listing, so it's not a true representation of what's actually the best. According to the press release, the service provides companies with better ROI on leads because the bidding creates "market-based pricing of leads." Perhaps. But does it deliver high ROI for customer-centric companies, organizations that aim to create a lasting, value-driven relationship with their customers from day one? Does outbidding for a lead actually make it a better quality lead -- or just make it cost more? What do you think?