How much should your business spend on advertising to generate a new lead? Although a central factor in a company’s growth and profit rate, target cost per Bolivia Phone Number List lead is rarely adequately considered. Directors, executives, and managers are satisfied that their lead generation goals are being met within budget, but perceived success is measured against a dubious goal. A questionable approach to such a critical metric reveals an inadequate understanding of your customers and your business. Yes, you have the names, but you have no idea what you are measuring everything by. All the while, everyone’s happiness mysteriously continues even when you exceed your cost-per-lead goal.
Variation in Lead Quality
Before closing a sale, you only have indicators of the customer value of your leads (based on how rigorous your approach to lead quality is). Regardless of your data points, you must manage the cost of collecting additional data points yourself. Adding extra fields to your registration form can potentially reduce your opt-in conversion rate, but you can also use APIs to automatically pull buyer information. Track and plot all possible metrics, then enter your earnings for each lead. You can now see a correlation between your lead metrics and your revenue. A low cost per lead should be abandoned in favor of tracking your cost per qualified lead.
Start your segmentation analysis now. It’s almost always wrong to set your ROI goal based on average lead quality. The best way to account for variation in lead quality is to divide the number of leads that match your critical quality metrics by your costs for each source-based segment. 2. Lead volume still matters Don’t just fall in love with having “quality” leads. High-volume lead generation channels often make up for what they lack in “quality” in volume. Often, the volume of “good enough” leads through more expensive channels generates more gross profit for a business once the leads convert. There is generally an inverse relationship between potential traffic volume and expected cost per lead. Competition will increase with the size of the opportunity, which tends to increase costs.