There are several ways you can gauge lead value
Posted: Sat Dec 28, 2024 8:29 am
For example, let’s say you have $1,000 to spend on paid social media ads, and by the time the campaign ends, you’ve generated 20 leads. Your CPL is $50. That number tells you a few important things: If a conversion rate of 2% means Facebook Ads are your best performing channel for lead generation, you can invest more budget into those ads to grow lead volume. You can also work to refine your Facebook Ads audience targeting, ad creative, and more to bring down your cost per acquisition — so you can grow the conversion rate and generate more leads with the same budget.
CPL and CAC also tell you whether or not you can afford to use a particular tactic to generate leads. If the average lead worth (more on that next!) is only $40 to your business, for example, then you can’t afford to spend estonia business email database $50 to acquire them. Lead Value Now, in order to contextualize what you can actually afford your CPA and CAC numbers to look like, you need to have an understanding of how much value each of those leads holds.
, but Brian O’Sullivan, our own Head of Growth Marketing, suggests these two: Monthly recurring revenue (MRR) Customer lifetime value (LTV). Both of these metrics can help you better understand how valuable the average lead is, and they both allow you to break that value out by channel, campaign, or anything else. For example, you may find that leads who come through a particular lead magnet add more to your MRR and are more valuable over the customer lifetime.
CPL and CAC also tell you whether or not you can afford to use a particular tactic to generate leads. If the average lead worth (more on that next!) is only $40 to your business, for example, then you can’t afford to spend estonia business email database $50 to acquire them. Lead Value Now, in order to contextualize what you can actually afford your CPA and CAC numbers to look like, you need to have an understanding of how much value each of those leads holds.
, but Brian O’Sullivan, our own Head of Growth Marketing, suggests these two: Monthly recurring revenue (MRR) Customer lifetime value (LTV). Both of these metrics can help you better understand how valuable the average lead is, and they both allow you to break that value out by channel, campaign, or anything else. For example, you may find that leads who come through a particular lead magnet add more to your MRR and are more valuable over the customer lifetime.