If any of these questions ran through your mind recently, you’re in the right place. These are the questions we hear from marketers and business owners when they start running lead gen campaigns for the first time.
Today, we’re going to go over how to measure your cost per lead campaigns and set KPI’s to determine wether or not your campaigns are effective. Give the following a quick read, and you’ll be able to measure your lead gen campaigns efficacy like a true digital marketer.
A cost-per-lead (CPL) campaign is a type of online advertising strategy in which an advertiser pays a certain amount for each lead generated through their ad. In order to measure the efficacy of a CPL campaign, it is important to track and analyze key performance indicators (KPIs) that provide insight into the campaign's performance.
One important KPI to track is the cost-per-lead, which is the amount of money spent on the campaign divided by the number of leads generated. This metric helps to determine the overall efficiency of the campaign, as a lower cost-per-lead indicates a higher return on investment.
Additionally, it is important to track the conversion rate, which is the percentage of leads that convert into paying customers. A higher conversion rate suggests that the campaign is targeting the right audience and that the ad messaging is effective.
Another important KPI to track is the click-through rate (CTR), which is the number of clicks on the ad divided by the number of impressions. This metric helps to determine the effectiveness of the ad creative, as a higher CTR suggests that the ad is resonating with the target audience. Additionally, it is important to track the engagement rate, which is the percentage of leads that engage with the ad or take a specific action, such as signing up for a newsletter or downloading a whitepaper.
Another key metric to measure is the lead quality. This can be measured by analyzing the lead score. Lead score is a value assigned to a lead based on the information that is provided by the lead. This can include demographic information, such as age, gender, location, job title, and industry, as well as behavioral information, such as the pages they visited on the website, the forms they filled out, and the emails they opened. A high lead score suggests that the leads generated by the campaign are of high quality and are more likely to convert into paying customers.
It is also important to track the lifetime value (LTV) of the leads generated by the campaign. LTV is the total revenue generated by a customer over the lifetime of their relationship with the business. A high LTV suggests that the leads generated by the campaign are valuable to the business and are likely to generate significant revenue over time.
In addition to these metrics, it is important to track the ROI of the campaign. This is the return on investment, which is calculated by subtracting the cost of the campaign from the revenue generated by the campaign, and dividing the result by the cost of the campaign. A positive ROI suggests that the campaign is generating a profit for the business, while a negative ROI suggests that the campaign is not generating enough revenue to cover the cost.
Measuring the efficacy of a cost-per-lead campaign requires tracking and analyzing a variety of KPIs that provide insight into the campaign's performance. These include the cost-per-lead, conversion rate, click-through rate, engagement rate, lead quality, lifetime value, and return on investment. By regularly monitoring these metrics and making adjustments as needed, advertisers can optimize their CPL campaigns and achieve a higher return on investment.
Are you currently running lead generation campaign and want to outsource this task or looking into starting a lead generation campaign for your business? If you’d like to chat through how crackerJCK can help with your lead generation campaigns, click here to submit an application to work with us.