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Low Cost Per Lead rates – how to reduce the cost of marketing activities?
Sales lead – what is it and how to take care of its quality?
Did you know that every online interaction can lead to a new recipient? And the entire process of acquiring such actions from the target group is called lead generation.
More specifically, a sales lead is a potential customer who has shown interest in a product or service offered by a company . This could be someone who has filled out a contact form on a website, left their contact details at a trade show, or called the company to get more information.
For companies, the quality of the leads they acquire is important. That is why it is important to reach people who potentially intend to make purchases, and not random contacts. For this reason, many entrepreneurs reach for lead nurturing, a process that involves conducting and developing relationships with potential customers at every stage of their purchasing path. It is a great strategy that increases the chance of conversion.
You probably know that acquiring customers requires money. To properly manage your advertising budget, you need to know how much it costs to acquire each one. And that's what this article is about. Read on if you want to learn more!
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Also read: Enough of accidental clicks on ads! Google has decided to remedy this.
What is CPL?
Cost Per Lead (CPL) is a key metric in online marketing that allows you to assess the effectiveness of an advertising campaign. But what exactly does it mean and why is it so important?
Let's say you run your own business and want to increase your audience. Currently, one of the best ways to reach them is the Internet. This is where CPL comes in handy, allowing you to assess the cost of acquiring a potential customer - a lead, or as we mentioned, a person who, for example, signed up for a newsletter, filled out a contact form or downloaded educational material.
The Cost Per Lead indicator allows you to determine how much it costs to acquire such a lead. Thanks to this, you can better control your advertising budget and optimize your strategy. Low CPL is your goal - it means that your marketing activities are effective and bring the intended effect.
What are the models beyond Cost Per Lead?
In e-marketing, there are many indicators that allow you to assess the effectiveness of advertising campaigns. Below you will find a few that are worth knowing in addition to CPL. Here they are:
CPA (Cost Per Action) – measures the cost of obtaining a specific action from an Internet user, such as registration or purchase of a product. In this payment model, the effectiveness of advertising is assessed in terms of specific business goals.
CPM (Cost Per Mille) – a payment model that indicates the costs associated with displaying an ad to a thousand users. It is a popular way of paying for campaigns aimed at building brand awareness.
CPO (Cost Per Order) – otherwise known as cost per order. It allows you to determine how much an advertiser pays to obtain one order. This is especially important for e-commerce, where the goal is to generate sales.
CPS (Cost Per Sale) – Similar to CPO, Cost Per Sale measures the cost of obtaining a single sale, but also takes into account its value. This allows you to assess the profitability of the campaign and its impact on profit.
CPV (Cost Per View) – Used primarily for video ads, this metric shows nepal phone number resource how much it costs to view a single video ad.
CPC (Cost Per Click) – this indicator measures the cost of clicking an ad. It is a commonly used payment model for campaigns based on paid search results or banners.
Also read: Mobilegeddon will hit with ads! oh my, oh my, oh my!
However, let us focus on the key indicator from the perspective of this article, i.e. CPL.
How to calculate the cost of a lead?
Want to control your total marketing costs? Then you need to know how to calculate your cost per lead. You can do that with the CPL model, which is based on a basic formula:
CPL = Cost of a given campaign / Number of leads acquired
For example, if a company spent PLN 1,000 on advertising and acquired 50 leads, the CPL is:
