As a marketer, you are constantly confronted with the task to minimize and optimize your company’s Cost Per Lead. Are you still calculating your Cost Per Lead (CPL) for outbound marketing but ignoring inbound digital marketing?
That may be a mistake: Inbound leads cost 61% less than outbound. The average CPL for outbound-dominated businesses was $346, compared to $135 for companies that mostly use inbound marketing techniques.
Before you begin, it’s important to determine your current inbound digital marketing Cost Per Lead. If you are unsure how to calculate your current CPL, use this simple formula:
Cost Per Lead = Cost Per Click / Conversion Rate
Once you’ve found your current digital marketing Cost Per Lead, monitor it and use that number as a benchmark. From here, you’ll be able to view movement, good and bad, and make changes in your inbound sales tactics accordingly.
3 Tactics to Lower Your Cost Per Lead
Once you begin calculating your inbound digital marketing CPL, use these 3 tactics to decrease the cost further.
1. Develop a Laser-Focused Persona
In order to reduce cost, you need to have a much greater focus on your ideal customer (also known as a persona). Who is your average buyer? If you have your ideal buyer in mind, why would you make your marketing general? That is a waste of money, time, and resources.
Only spend your marketing dollars where your ideal customer tends to be. Are they on social media? Are they more interested in informative white papers? Create the content they want to see in the places you know they’ll be.
2. Optimize Your Landing Pages and Test Results
Landing pages can be a great resource for you to gather information on potential customers. However, if your landing pages have a low conversion rate, it could greatly affect your overall CPL. If the conversion rate is unfavorable, your landing pages may need optimization.
Landing pages can be a very tricky thing to optimize. So, it’s always important to try new things, review the results, and continually make changes until your conversion rate is at an acceptable level. Here are a few things to keep in mind when creating a landing page:
- Make sure the submission forms stand out from the rest of the page. Use arrows, colors, different font styles, and more to make sure the viewer can easily find it.
- Don’t ask too many questions. When someone submits an initial form, only ask for the bare minimum – name, email address, and phone number. Once you have general contact information, you can dig deeper in the future with content directed at their interests.
- Keep the word count low, and focus on the benefits. Once a potential customer arrives at the landing page, they already know why they are there. It is pointless to have a long, drawn-out landing page discussing your company history when all the buyer wants is the advertised long form. Nothing scares someone away faster than a bloated, confusing landing page.
Here’s an example of one of Marketing Essentials’ landing pages.
3. Reevaluate Your Social Media Plan
Social media can be a very powerful (and mostly free) tool for companies. It is a great way to engage with customers and gauge what piques the interest of potential buyers. However, like anything else, using it incorrectly will yield unsatisfactory results.
Whatever you share on social media reflects on your company. Make sure your posts are genuine and helpful to your audience. If you are posting content that is too general and not connecting with your desired persona or content that is not helpful to your ideal audience, you may attract the wrong crowd. This can greatly affect your CPL even if you don’t see it up front. You want to fill your sales funnel with the best leads possible; otherwise, you are wasting precious time and money.
How to Succeed
Would you like additional tips to lower your Cost Per Lead? Worried that you don’t have the know-how to make needed changes? Reach out to Marketing Essentials today. We offer a free 30-minute consultation to review your current strategy and point you in the right direction. Request your free strategy session today!