Cost per Lead (CPL)

Cost per Lead (CPL) refers to the cost to acquire basic information and the direct contact of a previously anonymous user, in order to include it into a marketing funnel aimed at converting him to a sale. In other words, it is the cost to have potential customer giving you their basic information and permission to establish a relationship.

It is a fundamental value to determine the sustainability of a customer acquisition campaign and, along with the Conversion Rate (CR), determines the Customer Acquisition Cost (CAC).

Here is served a collection of deep reasonings about the Cost per Lead (CPL).

Cost per Lead (CPL) deepenings

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Take e-mail marketing seriously or die.
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Getting forms filled-out for e-mail marketing campaigns is a serious game. It’s a core business process. Let me show you why and how e-mail marketers play a relevant role.
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E-commerce startup? Start from brick&mortar!
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CR and CPL: what's the cost of an estimation error?
CR and CPL: what's the cost of an estimation error?
We acquire leads paying a CPL for then converting them at a certain CR. These two factors determine the CAC. Which of the two factors is more relevant?
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Cost per Lead (CPL) back to basics

Back tobasics, what is the cost per lead?

Think about a Google Ads campaign, where you pay Google a certain amount of money to have an anonymous user click on a search ad.

Such click will land the anonymous user to a specific page on your website. He may be interested in the content in front of his eyes or not. He may be sign in the newsletter to buy whatever you are offering.

But, if the user leaves the website, maybe even impressed by your message, promising himself to get back as soon as possible, you have lost him and, with him, the money given to Google to have him click on your ad.

Your page should be intended to present your message, as well as collecting some information about the potential client in order for you to establish a relationship you can be in control of.

Some of the users may give you such information and the permission to establish a relationship with them, other won’t. Whose who will, are your leads, whose cost to be acquired is the Cost per Lead (CPL).

In this specific case of lead acquisition, the cost per lead is simply calculated as acombination of the cost per click and the conversion rate.

The cost per lead may also be agreed with a publisher to run an acquisition campaign. Hence, you run an email marketing campaign on the contact list of a publisherby agreeing with the latter that you will pay for the campaign a certain amount of money per lead generated.

In any case, acquiring leads means you finally have in your contact list of qualified potential customer you can now establish a structured relationship aiming at having them become loyal customers.