Planning your marketing strategy depends on achieving long-term results. This is the best way to be consistent and achieve your expected goals. To achieve this level, one of the indicators ( KPIs ) to monitor is the cost per lead (CPL).
This metric has everything to do with the financial health of your business. This is because the more you spend to attract someone interested in your products or services, the lower the profit you will make. For the marketing team, it becomes more difficult to prove the effectiveness of the actions.
The question that remains is: how can you use CPL to your advantage? india phone number resource See how important this indicator is and how to improve your performance .
What is cost per lead?
CPL is an indicator that measures how much your company spends to attract a potential customer . Its result depends on dividing the total amount spent on a campaign by the number of interested people, even if the contract has not been closed.
The ideal is to have a low cost per lead , because this means that your strategies are successful. Therefore, the metric is directly related to the investments made and to digital marketing performance.
By monitoring this indicator, you can confirm the effectiveness of the strategy and show that long-term results will be achieved. This means that the actions taken are solid and that customers are converting well.
How to calculate the cost per lead?
The CPL formula is simple:
CPL = marketing investment / number of leads
It is important to know that marketing investment includes the costs of generating new registrations and capturing contacts . By considering these variables, you will have a more accurate calculation.
For example, imagine that you created an inbound marketing campaign and invested R$5,000 — that was your budget. The return was 4,000 clicks on the landing page . With that, you gained 350 leads .
Applying these values to the formula, we have a result of approximately R$14.28. Is this good or bad? The analysis depends on a few questions.
One of them is the ratio of sales to leads generated. The idea is to know what your profit margin is and understand how much you can pay for a potential customer without compromising the business's finances.