As a direct response industry expert, Justin Steinle often finds himself confused when company owners are shocked or surprised by what they consider an excessive cost for a targeted quality lead. Let’s dive in…
First, what is cost-per-lead (CPL)? This is a media calculation when taking the media spend divided by a specific action, such as a call or form submission. Example: Media Spend / Calls = CPL ($1000/10 = $100)
A campaign’s CPL will vary based on the specific industry and media type, which an expert in both areas will usually have a rough estimate on average CPL’s typically achieved. It’s more than understandable that a business owner will want to achieve the lowest cost-per-call, as this represents performance and potential revenue for the company.
Though a lower CPL is desired by the company, it may be better for the company to have a higher CPL with targeted media and leads. The CPL may increase as you target a more specific lead with various selects, an example is location; if your organization is focused in one state, you’ll potentially pay more for targeting that state versus less for a national campaign. $100 State vs $50 National – The targeted leads may develop a higher conversion rate, with less operational expenses to process, and in turn develop higher profits for your organization.
As you review your media plans and strategy, make sure you don’t just focus on lower cost is better. Through modeling processes, you can develop a strategy that will allow you to reach your companies goals.
Author: Justin Steinle
University of Mary graduate and business professional Justin Steinle works as a senior executive in the direct-response marketing and advertising industry. Among the business tools that Justin Steinle offers to his clients is lead generation.
Lead generation is the process through which a company identifies and compiles the contact information of potential customers. The process of effective lead generation continues to evolve in the digital age, but certain tactics can be useful for modern companies who wish to leverage lead generation as a tool to boost profits.
It’s important for companies to focus on great content marketing. Companies that run a well-written blog and create quality long form content are setting themselves up for increased lead generation. Informative, clean content will help a company to build brand trust among its customers, who then become more open to the kind of social media advertising that generates leads.
Another crucial lead generation tip for companies is to establish straightforward expectations for potential customers who visit their websites. Businesses that clearly communicate how and when a customer can expect contact are more likely to influence customers to submit personal information. Companies can further encourage the submission of contact information by designing easily read online forms that only ask for necessary information, saving requests for more specific data until after initial contact.
With 25 years of experience in the business development field, Justin Steinle has served a range of industries from addiction rehabilitation, retirement living, to financial and home goods. Justin Steinle specializes in effective forms of marketing, including lead generation.
Lead generation is the process of getting the attention of potential customers. With the rise of social media and other digital information platforms, this process has significantly changed. More and more buyers are now “self-generated,” able to seek and find whatever information they might be looking for on the internet. Lead generation specialists must understand the complexities of this process to most effectively get a product in front of a potential consumer.
In previous years, companies would focus on representing themselves effectively and finding a customer. Mass advertising to a specific demographic worked well, and specific information blasts at one time were enough to get the attention of a customer. Today, companies must instead focus on representing the potential client, being found by him or her, and providing plenty of useful information so the potential customer can make an informed decision. Rather than targeting a major demographic, companies must work more closely and intimately with a potential client and maintain that relationship over a longer period of time.
By the time a potential client finds the product or service they might wish to buy, they have generally already learned a great deal about the product. Effective lead generation practices today must take into account that the sales landscape has hugely changed, and marketers must understand the new way potential clients pay attention and research their potential purchase.