To start, let's say you're selling custom logos online with a website that gets 10,000 visitors a month. Although there are numerous organic lead generation methods, such as SEO techniques and sales funnels, obtaining a list of sales leads can provide your company with the additional boost it needs to develop. Healthcare solution providers who recognize what it takes to be successful in lead generation gain better market coverage, better industry intelligence and more sales opportunities. Allocating a full budget for the cost of generating leads and overall sales depends on number of potential customers you get.
The main purpose of inbound lead generation strategies is to be found by qualified leads looking for answers. I've read and heard (from a well-known industry analyst firm) that best-in-class companies close 30% of qualified sales leads. These potential customers can be active users of your services and tools who continue to update their subscriptions or plans. However, the lower your ROI, the less likely you're willing to pay for attracting and generating leads.
While this is a simplistic approach, you can see to what extent the average deal size, margin, and the percentage of revenue spent on marketing affect the allowable cost per potential customer. However, this post also tells you when lead prices are and when you should hit the street with your scrap lead. The cost-per-lead equation is the first in a series of marketing analyses that will help you determine the effectiveness of your marketing efforts. The higher your ROI, the more likely you are to get leads and your potential customers will be valued at a higher cost.
Since prequalifying potential customers increases costs, the marketing solution was to stop pre-qualifying potential customers and send them directly to the sales department. You're more likely to generate qualified leads organically by optimizing your website to meet Google's criteria. Whether you're buying a list, gathering contacts at business events, or generating leads through inbound marketing activities, knowing your cost per lead will help you stay within your budget. For example, The Online Advertising Guide's online CPL calculator allows you to determine your current cost per lead, while Jellop's target CPL calculator allows you to plan your target cost per lead based on the consumer's lifetime value, lead conversion rate, and ROI objective.
Before diving directly into the cost of lead generation, it's essential to first know what lead generation is.