A HubSpot statistic shows that 61% of marketers find lead generation their biggest challenge. Your digital marketing efforts can help you get quality leads when executed correctly. You need to monitor your ad performance to see the click-through rate, lead generation and other metrics.
If you are getting a high number of leads but spending more than they are costing you more than you’re earning, you need to reduce your cost as it is not practical. ETRAFFIC can help you determine if your lead ads are effective and how you can reduce your CPL.
Please call us today at 1300 887 151 to learn how to decrease your cost per lead or book a free strategy session below.
What Is Cost Per Lead?
Cost per lead (CPL) refers to how much money it takes to get a new potential customer or lead from your running marketing campaign. These leads see your ad, click it, get redirected to your landing page, where they may leave their information or learn more about your product or service. Acquiring new leads is vital as they may convert into paying customers.
CPL is one of the metrics used by digital marketers, but you should not confuse it with cost per click (CPC). Your marketing team determines if they are spending the appropriate amount of money on different avenues like Facebook Ads and Google ads to generate leads through CPL.
Once you start tracking your lead or CPL, it is easier to create more effective marketing campaigns and attract qualified leads for less amount of money.
How To Calculate Cost Per Lead
Calculating your cost per lead is not a complicated process. You need to divide how much money you spent on your campaign by the number of leads generated from the campaign. For instance, if you spent $1,000 on your campaign and your total customer acquisition is 100, your CPL is $10.
A recent statistic posted on HubSpot revealed that 49% of companies list customer acquisition as their top priority. ETRAFFIC measures how to calculate cost per lead and offers you other tips and tricks on targeting people and customer acquisition.
It would be best to calculate your CPL for different campaigns separately. Calculating your search engines, social media, and other digital marketing campaigns metrics individually lets you know what platform’s campaigns require adjusting. It also allows you to measure how cost-effective your campaigns are, and you can have an average cost of how much you need for your next campaign.
Cost Per Lead Marketing Services
Cost per lead is a digital marketing pricing model where your business pays a specific price for each lead generated. Using CPL can help you connect with your target audience and high-value leads who will likely recommend your company.
See CPL In Action!
CPL involves lead generating campaigns designed to engage and attract high-quality leads. Potential clients are interested in your product or service by taking a specific desired action. CPL leads will most likely convert into paying customers. Your particular business goals will determine what action your potential leads take. It is worth noting that high volume leads mean nothing if they are not taking the desired action.
One of the most important considerations of a successful business is being able to increase your sales numbers. While retaining existing customers is essential, it is also important that you are able to generate new leads. One problem many companies face when trying to do this is spending too much on each lead. This means that you not only invest a lot without making much in return, but it also means that when sales are made your profit margin will be lower. That is why your top priority needs to be boosting your customer base while keeping your costs down.
Evaluating Your Marketing Strategy
One factor that has a huge impact on lead generation is the strategy that is being used to market your business to others. Many business owners do not realise that some of the techniques that they rely on are not evergreen, meaning that they are not going to have the same benefits over time. As a result, it is important that your marketing efforts are assessed regularly and changes are made to ensure you are constantly staying up to date.
It can be a bit tricky to make changes, especially if you have been in business for quite some time and you are used to doing things a certain way, but this is what needs to be done if you want to give your business a much-needed boost and keep up with your competition. Besides, you will save a great deal of money when you are no longer funnelling money into marketing channels that are not offering any significant returns on your investment.
The Importance Of Blogging
Years ago, many looked at blogging as an online diary where one could share some of their personal thoughts with an audience. While it is still used for these purposes in certain instances, it has become a revolutionary way to connect with potential customers. The idea is to have them see you as an expert in your niche. Once this happens, they will feel compelled to come to you for all of their needs.
You must remember that the blogging that needs to be done on behalf of your business needs to be informational, precise, relevant and preferably timeless as there is no way to guarantee when the content will be read. In addition, it has to be professional in nature and speak directly to those who have a need for the products and services you are selling. This is not something that everyone is adept at, which means that it should not be attempted on your own if you are not well-versed in this area.
Marketing Channels
Have you taken the time to explore all of the marketing channels that can greatly benefit your business? For instance, do you have various social media accounts that draw people to your business on a consistent basis? If you have been using the same marketing channels for quite some time, it may be time to make changes. Perhaps you have been trying hard to reach your intended audience on Twitter, but the demographic you are trying to appeal to is more likely to be on Facebook. It is your responsibility as a business owner to make sure that you have the correct information and that you are reaching the right audience.
In addition to changes with your social media marketing, you may want to explore changes with the way that you are marketing via email and/or mobile devices. Keep in mind it is not about the number of channels you are using, but the quality of your efforts and the impact that is being made when it comes to attracting new business.
Our Process
At ETRAFFIC, we are dedicated to helping struggling and stagnant businesses increase their sales numbers. With that said, one of our most important goals is helping you decrease your cost per lead. What we will do is take a look at the strategies that are currently being implemented and make changes that will have positive financial benefits for you. Whether this means writing blog content on your behalf or giving your social media accounts an overhaul, our goal is to make your business as successful as possible.
Our company knows that everyone has different needs, so we work closely with you to determine what your unique needs are and then build a plan accordingly. Marketing is not a cookie-cutter industry and you will never be treated like it is. We will personalise services in order to assure you reap the most benefits from our efforts,
Our Points of Difference
We are different from the other digital marketing agencies because we genuinely care about your success. This means that we are not opposed to working tirelessly in order to make sure that all of your business goals are met. It is never about the bottom line for us. Our reputation is based on how much we care for every single one of our clients by treating them like priorities, not profits.
It is also important to note that we are transparent and will keep you updated about the process every step of the way. You will never be in the dark about what we are doing to help you. We will communicate with you regularly and will be open in honest about how things are going.
Why Work With Us
Do you feel like your business is not doing well as it could be? Are you worried about spending too much money on a regular basis and not seeing any profits? Do you have concerns about putting more into the business than you are receiving from it? If so, it is time that you do something about it.
Before you continue to invest more money into strategies that are not working, you need to call us. We will help you find ways to increase the number of leads you are able to generate regularly while managing to keep the costs down. Instead of hesitating and wasting more money in the meantime, you should give us a call today so we can discuss what we can do for you.
Go Beyond Cost Per Lead With ETRAFFIC's Services
CPL ensures that your marketing campaigns are more effective and successful when done well. Keeping track of your CPL lets you know what you need to tweak in your next campaign. Don’t worry about monitoring your CPL because ETRAFFIC does that on your behalf. Fearless Competitor estimate outsourcing lead generation generates 43% more leads than in-house lead generation.
We track all leads to know what campaign brought them to your website, making it easier to know what campaigns need adjusting. Do you feel like your business is not doing as well as possible? Do something about it. Contact us today and decrease your business’ cost per lead!
Cost Per Lead FAQs
You must calculate the number of leads you acquired and the amount of money you spent within the same time frame. For instance, if the ad was running for a month, you should only calculate the leads you got and the specific amount spent within that month. Doing so ensures you get accurate results.
Using CPL lets you measure and track how much you spend on each lead. With CPL, you are paying for results and higher quality leads. You do not have to worry about using negative keywords. Instead, it allows you to maximise your marketing budget.
Several factors can cause your CPL to increase, so you need to calculate your CPL across the different marketing channels separately. Your offline channels or one of the digital platforms may be why your CPL is increasing. Dividing the CPL of each channel will help you pinpoint why it is increasing.
A good CPL on Facebook depends on your sales funnel, and you can only establish it by measuring the throughput of your leads to customers. A good CPL will differ from each company as you sell different services or products, your prices vary, and so does lead conversion rate.
The cost per lead significantly varies for each business. Your CPL will also vary based on your target audiences’ knowledge, the industry you are in, and your sector’s competitiveness. For instance, the average cost per lead in non-profits is $31, while in the technology industry, it is $208. On the other hand, the average cost per lead by the lead generation channel is $31 for SEO and $110 for search engines advertising. As a result, there is no standard cost per lead as different factors like whether you are using SEO services or pay per click (PPC) will determine the total cost.
Cost per lead is a digital marketing metric that measures whether your marketing campaign is cost-effective in generating leads for your sales team. The lead is often a potential customer who expresses interest in your business by completing your marketing goal. For instance, if you are running a pay-per-click campaign, you have achieved your goal and can be considered a lead when they click on the ad.
Good CPA should allow you to control your advertising cost for your specific marketing objectives. You should also be able to track and maximise your return on investment on all the marketing channels. A good CPA lets you measure your marketing efforts’ success while ensuring you invest in cost-effective channels.
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