Cost per lead is a metric to measure the cost-effectiveness of your marketing campaigns in relation to generating new leads. The purpose of cost per lead is to provide a tangible figure so the marketing team can gauge how much of the marketing budget is appropriate to spend on getting new leads.
Therefore, this metric is useful to observe how individual marketing campaigns such as banner ads, AdWords or social ads are performing as well as the sum of all your marketing efforts.
Have a look at the tips below for reducing your cost per lead:
Conduct An Ad Review To Determine Your Cost Per Lead
The first step to reducing the cost for everything is to conduct a review. It’s not any different with reducing the cost per click. You need to go back and run an ad performance report to analyze each landing page and ad text performance.
If you find out that an ad page is not performing well, but the ad text is doing well with a high click-through rate, you can decide to match the ad text with a landing page that is performing better.
This will lead to more conversions and thus a lower CPL. Also, ensure that the keywords you use are both in your ad text and your landing page. This will boost your score by improving your ad relevance and in turn reduce your CPL.
Optimize Your Test Results And Landing Pages
Although landing pages can be a useful resource to gather information about potential customers, if they have low conversion rates, your CPL will increase. To improve the conversion rate, you may need to optimize your landing pages.
Review the results and continuously make changes to improve your conversion rate. Moreover, make the submission page stand out by using different font sizes, arrows and other features that will make it easily findable.
Ensure also that you keep the questions to users at the bare minimum and that you don’t have a bloated and confused landing page with unnecessary information that the client doesn’t care about. Just give them what they came for, precise and to the point.
Reconsider Your Social Media Plan
Social media is a powerful tool for marketing companies through engaging customers and promoting products. Through it, you can gauge what peaks the interest of potential customers.
However, the worst mistake a company can commit is to treat social media as one. For a company, the social media page is strategic and should not be a place for press releases and endless product posts.
Rather, it should be a platform for your customers and clients to meet and see the human side of your business. It’s primarily the place for engagement.
Human beings like to buy from fellow humans. Therefore, speak to your base on social media like a human. It will increase their engagement, appeal to their senses and emotions and increase the conversion rate hence reducing the CPL.
Final Thoughts On Reducing Your Cost Per Lead
The only way to reduce the CPL is to ensure that the conversion rate is increased. When the conversion rate beats the marketing efforts, the CPL, which is inversely related, is low.
The above tips will greatly reduce your CPL through increasing the conversion rate as they touch the most common and sensitive attributes of online marketing.