Cost Per Lead: How Can You decrease your cost per lead?
How To Reduce Your Cost Per Lead
Every year, marketers use a huge sum of money on the digital advertisement of their company. It is not that pumping billions of dollars into ads correlates directly to favorable results. If you want to put those spent amounts to good use, you should strategies and keep your cost per lead as low as possible.
So, what is the cost per lead? How can you prevent wasting money on ads? In this article, we will unravel everything in detail.
How does Cost per Lead Work?
Cost per lead is an efficient metric that marketers utilize by spending money to attain a new lead for nurturing through their database. In other words, cost per lead represents the ability of a company’s marketing team to serve high-quality, target-oriented ads to drive concrete results for the business.
Generally, people believe the cost per lead to be just a paid advertisement. However, it can be applied to various other marketing campaigns. When you can keep your cost per lead lower, you can upgrade the ROI of marketing strategies. Simultaneously, you can continue to attain newer, high-quality leads for the sales team.
Proven Ways to Lower Cost Per Lead
1. Assess and Update Keywords
Well, our next tip to reduce cost per lead goes back to the heart that can enable managing Google Ads. You can run the performance report of your ad and analyze every keyword to check whether or not the keywords are vague or outdated. Others bringing in many people do convert or not?
It is better to be more specific to achieve what you want to obtain. Although it is easier to lag behind with general keywords, you can cover it up by pointing out the specific audience group. For this, you can create appropriate keywords, relevant content, and ads to convert potential audiences into buyers.
2. Minimize the Cost Per Click
Another great way to reduce your cost per lead is by reducing the cost per click. Obviously, if you keep serving your ads to audiences who have no need or interest in the content of the ads showing or promoting some content that afterward fails to serve, your cost per lead will ultimately decrease.
When spending your money and effort on this trafficking, you desire to receive the maximum value out of it. Hence, you should ensure the landing page for conversions has been optimized.
There should be a clear offer just over the fold to understand within five seconds. You can also test the potency of the landing pages simply by showing them to anyone for five seconds. Ask them what has been offered in it, and if they fail to comprehend, you need to modify it.
The more you make things relevant, the better results you will likely get. So, it is far better to select highly targeted and relevant keywords to be more reflective of the prospective search results. This will increase your quality score while reducing the cost per click. Hence, the less money you pay for traffic and better traffic in the content you send will help to reduce the overall cost per lead.
3. Exclude Unreasonable Spending
Google helps to create and target potential audiences having similar interests. For example, suppose you want to promote your automotive company. So, you can make a list of customers who often browse for cars and serve them with your company ads. They are more likely to show interest in the ad. Hence, click on the ad and convert your offer rather than people who barely search for cars.
In addition, you can even retarget the audience who has already been a visitor to your site. Attract them again so that they also convert.
One of the best strategies is to not go on targeting every visitor to your site. You should rather group these audiences differently depending on their behavior.
Group A
Audiences who viewed high-intent pages such as prices, the bottom of the notice landing pages.
Group B
People who viewed high-traffic pages such as the homepage or blog articles but have neutral intentions.
Group C
Audiences visiting highly negative intentional pages such as the unsubscribing email page.
Based on your advertisement strategy, you can again target the high-intent audience with much more intention to convert. Besides, this is a helpful strategy to learn about negative-intent or low-intent audiences that further helps to optimize your target and ads.
Another group of key audiences you consider is the visitors who have already converted to your site. This audience group is already on your track, so you might not want to serve paid ads again. Nonetheless, Google offers the option to set your target on similar audiences as they have more chances to convert. It may happen that these similar audiences didn’t find your brand earlier, and after they find it, they will behave the same way.
This strategy can prevent you from spending money on audiences who are less likely to convert. Moreover, you can use Capture, a software that helps you operate retargeting campaigns. This is a great way to pull back your target audience and convert them.
4. Boost Quality Score
Your company ads should be more relevant and specific to the needs of your audience. This way, you can reduce the cost of ads with poorer quality scores. In fact, you are likely to save 50% on the PPC with higher quality scores.
The quality score depends on three basic metrics CTR, ad relevance, and landing pages. Hence, investing your money and effort into CTR, landing page testing along with your site’s surveying loading times can lower your cost per lead.
The Takeaway
Indeed, cost per lead is one of the metrics for cost per acquisition. However, if you manage to reduce your cost per lead, the cost per acquisition is likely to stay relatively low. Nonetheless, it is better to keep on working ways out to lower the amount of time and money spent on converting leads. You should not sacrifice the quality of leads in the first place.
It may seem to be a daunting task to maintain a lower cost per lead, but if your strategies do well and you brush up on your marketing efforts, you will get success.
