Growth Virality

Cost Per Lead

Cost per Lead is the measure of expenses for generating new customers. 

Not just do you like to measure your client acquisition cost for inbound marketing. For sure, you also wish outbound marketing. How much is it costing you to get a client through inbound marketing vs. outbound marketing?

Measuring your client acquisition cost needs the incorporation of your CRM platforms, marketing automation, and even your accounting for every significant expense associated with ERP integration. 

Measuring client acquisition cost for outbound marketing includes

  • General overhead
  • Manpower (Marketing & Sales)
  • Marketing distribution
  • Advertising

Measuring client acquisition cost for inbound marketing includes:

  • General overhead
  • Software and technology
  • Manpower (Technical & Creative) 

Role

Manager 

Formula

Total cost of campaign / number of leads generated 

Variations

Cost of campaign, number of leads

Audience

Marketing Manager 

 

After measuring the expenses connected with your OM and IM campaigns, you could account for new sales. You can also designate specific budgets for every campaign. 

 

The importance of Cost Per Lead Metric for the Marketing Team

If your organization is using inbound marketing most of the time, you could break down that component further through campaign types and evaluate how lucrative and flourishing every activity is. Once you understand that, you could begin executing activities to strengthen over time. 

The Cost per Lead model helps share the responsibility for performance between advertisers and publishers. Advertisers maximize the conversion of leads into sales while the publisher puts their ads in the form of appropriate audiences in the appropriate ways to produce a response.