Oftentimes, companies will use cost per lead (CPL) as a performance metric. It is simple to measure the CPL and use it as a driving force, though what people sometimes fail to recognize is that a successful marketing strategy is much more complex. It requires a well managed and thoroughly thought out plan in order to be effective and efficient.
Organizations that typically focus on CPL have the singular goal of obtaining leads. They believe that getting more leads means getting more sales. Quantity over quality. However, once the lead has been obtained, oftentimes through an independent group, it is then up to the sales group to close the sale. What’s the problem with this? It lacks the cohesiveness necessary to deliver the sale. Remember, the goal is to gain good leads.
Furthermore, leads are not all the same. Different substance calls for different creative vehicles. The lead may be in response to an email or a web form download or a calling for attendees of a customer presentation at a conference. Each demand calls for a different kind of delivery. You wouldn’t want to deliver a pizza in a refrigerator box. It just doesn’t work out. A good practice is to identify each lead with an appropriate definition. This allows your team to better strategize for the incoming team. For example:
- Lead
- Marketing Qualified Lead
- Sales Qualified Lead
- Sales Accepted Lead
It can often be the case that decreasing the cost per lead results in the creation of more leads. While you may have acquired a great number of leads, additional resources are required to turn the leads into efficient sales. A direct sales rep is around $1800 per day. It’s imperative then, when you want to maximize your efficiency, that you establish a system where good opportunities are able to flourish.
Source: Fourquadrant.com