What is Cost-per-Lead and why is this metric important?
What is Cost-per-Lead
Cost-per-Lead (CPL) is a marketing metric that measures the cost a company incurs per generated lead. A lead is an individual or company that has shown interest in a company’s products or services by, for example, filling out a contact form, making an inquiry, or subscribing to a newsletter. It is important to reduce Cost-per-Lead as it has an impact on your entire pipeline.
The calculation of the Cost per Lead
is done by dividing the total costs for marketing campaigns or activities by the number of leads generated during a specific period. The formula is:
Cost per lead
Why is CPL important?
Efficiency of marketing expenses: CPL helps marketers understand belgium phone dataset how effective their marketing expenses are. A lower CPL means fewer costs are incurred for generating a lead, indicating efficient utilization of the marketing budget.
Return on Investment (ROI): CPL is an essential component Deanonymize Website Traffic: Understanding, Benefits, and Implementation of ROI calculation. It enables companies to assess the value of their marketing campaigns and determine if expenditures are proportionate to the generated leads.
Optimization of marketing campaigns: By monitoring central african leads CPL, marketing teams can optimize campaigns to increase efficiency. If CPL is too high, adjustments can be made to the target audience, advertising platforms, or messaging to reduce costs and generate more qualified leads.
Better understanding of the target audience: Analyzing CPL can provide insights into the effectiveness of engaging and converting different target groups. This allows marketing strategies to be better aligned with the needs and preferences of potential customers.
Overall, Cost per Lead is an important metric in marketing that helps companies optimize their marketing strategies, improve campaign efficiency, and maximize the profitability of their investments.
Reduce Cost-per-Lead: Our Journey Since 2020
At LeadRebel, we embarked on customer acquisition in mid-2020. As is typical at the outset, we made several mistakes and invested (relatively) significant funds into channels that did not yield results.
However, incorrect channels were not our sole issue. Here’s a list of what, in hindsight, we did wrong:
PR Campaign: We spent approximately 5000 euros on a PR campaign that brought us exactly 0 leads. Yet, it did provide us with some valuable backlinks that likely positively influenced our long-term SEO. However, these links were definitely not worth 5000 euros.
Cold Outreach: Initially, we spent around 5000 euros per month on this. One of our sales reps delivered almost nothing, while the other generated a decent number of leads. The problem? We hadn’t established Product-Market Fit (PMF) at that time, and our prices per unit were too low. Consequently, after 3 months, we ceased cold outreach.
Affiliate Platforms: We listed ourselves on two German/European affiliate platforms, spending approximately 3000 euros.
This resulted in some moderately good
backlinks but hardly any leads. Eventually, we completely shut down these campaigns.
Agency-based Cold Outreach: In contrast to point 2, this time we engaged an agency for cold outreach to acquire partner agencies for us. Outcome: around 15 prospects, 1-2 partners with some revenue. Duration: 3-4 months, costs around 4-5 thousand (in total). Hence, this approach also did not yield worthwhile results.
Incorrect Ads Agencies: Google Ads remained an essential lead source for LeadRebel. Unfortunately, it took us a long time to find our strategy. We changed 4 agencies that managed our campaigns, and NOT A SINGLE ONE provided the desired results. Ultimately, we began managing our campaigns in-house, and surprise! It worked. Fairly, it’s worth noting that these are solely our experiences, and there are undoubtedly many cases where the collaboration between an agency and a client works significantly better.
