Tips to Decrease Your Cost Per Lead
You probably measure your company’s digital marketing performance by the number of leads it generates, but do you track how much you’re spending to capture these leads? With digital marketing costs climbing rapidly, assessing the cost per lead (CPL) is a critical performance measurement tool that you can use to help boost the success of your online marketing campaigns.
With a focus on developing digital marketing campaigns with measurable results, the Naples, Florida-based digital marketing experts at Moxxi Marketing keep close track of their client’s CPLs to help optimize every marketing dollar they spend. Along with boosting the return on investment in digital marketing campaigns, proactively working to decrease the CPL helps strengthen campaigns—a win-win on both the expense and earning sides of your business operations.
What is a Cost Per Lead?
Simply put, cost per lead refers to how much money is spent from a campaign’s budget to acquire each lead that enters the sales funnel. In addition to paid advertising, CPL can be applied to other digital marketing costs, such as search engine optimization, social media marketing, pay-per-click, email marketing, and conversion-focused marketing. While CPL is similar to other performance measurement metrics like cost per click, it offers a more holistic look at campaign spending and its effectiveness.
Calculating the CPL is easy because it merely involves dividing a campaign’s total budget by the number of leads it generates. However, the value of the number of generated leads is subjective, depending on their quality. Thus, the CPL needs to be measured in relation to the quality of leads generated, as high-quality, converting leads may be worth higher CPL spending.
In conclusion, proactive efforts to decrease a campaign’s CPL is usually beneficial, but always monitor the quality of leads generated.
Review Effectiveness of Previous Campaigns
The best way to begin bringing down the CPL is to review the success—or lack thereof—of previous campaigns. Conduct a review of past campaign budgets and results to calculate the CPL for each. Separate campaigns by their CPLs and lead generation results and assess whether they provided a successful ROI. Focus on campaigns with low CPLs that generated a high number of leads and any high CPL campaigns that led to successful ROIs. Figure out what made these campaigns successful and duplicate what worked with these efforts in future campaigns.
Focus on Keywords in PPC Ads
Review the effectiveness of any keywords used in pay-per-click ads to generate leads. In particular, focus on replacing low-performing keywords with better-targeting keywords that might generate more leads. Replacing non-performing keywords with long-tail keyword phrasing can capture more high-quality leads genuinely interested in your business and help reduce your CPL.
Capture More Leads with Remarketing
If a customer has been exposed to one of your PPC ads but didn’t bite, like fishing, try again by casting the bait before them again. PPC remarketing involves re-exposing potential customers to ads they’ve seen with cookies that generate the ads on other sites they visit, which reminds them about your product or service and makes them more like to convert.
Conduct A/B Testing for In-Progress Campaigns
To evaluate the CPL of a campaign in progress, you can conduct A/B testing to assess which version of two similar ads, emails, popups, web pages, or landing pages seems to generate more leads. Also known as split testing, the evaluation can help you test any element—call to action, headline, sales copy, product description, featured image, etc.—of your marketing materials to determine which seems to generate more leads.
Pay Attention to Demographics
Who is your target market? If you can’t answer this question or you’re not considering this metric in relation to your digital marketing efforts, your CPL is highly dependent on luck. You need to know who your targeted leads are so that you can fine-tune your marketing materials to specifically capture their attention. Campaigns developed without regard to demographics often experience high CPLs because they fail to target the right audience. Not only should you know the basic demographics of your target market, you should make an effort to determine how your digital marketing efforts perform on a demographic basis and focus more efforts on capturing more of the audience that is positively responding to your campaigns.
Diversify Your Marketing Mix
PPC advertising is often a high CPL effort that generates lower-quality, non-converting leads. To improve the success of PPC and lower your CPL, make sure you diversify your campaign by blending other marketing tactics with PPC advertising. PPC should not be used as a stand-alone campaign and works best when supplemented with related marketing efforts as part of a bigger campaign.
Turn to Moxxi Marketing to Help Decrease Your Cost Per Lead
If you’re struggling to maintain the effectiveness of your company’s digital marketing efforts, consult with the online marketing experts at Naples, Florida-based Moxxi Marketing. We deliver measurable results to our medical service and other business clients by paying close attention to metrics like cost per lead. To learn more about how we boost our clients’ online presence and lead generation efforts, contact Moxxi Marketing today at 239.330.6236.