Learn 6 effective strategies to lower your cost per lead (CPL) and increase your ROI. Discover how to optimize your marketing efforts and target the right audience to generate more leads at a lower cost.
The video discusses the latest marketing trends and strategies for businesses. It highlights the importance of social media marketing, content marketing, and influencer partnerships in reaching and engaging with target audiences. The speaker also emphasizes the significance of data analysis and customer feedback in refining marketing efforts.
It’s always better to get more stuff for less money - whether you’re buying candy
for yourself at the grocery store or stocking up on office supplies.
The same thing is true for your leads. Over time, your goal should be to fine tune your marketing
so your cost per lead (CPL) decreases and the number of high-quality leads increases. Although
it’s not as simple as buying your favorite candy. Cost per lead is just what it sounds like — the
amount of money you spend on each lead that you earn. You can calculate CPL by
dividing the total cost of a campaign by how many leads you earned from it.
Needless to say, you want your CPL to be as low as possible - since, again, that means you’re
spending less money to convert those leads. But how can you reduce cost per lead? Well,
that’s what we’re here to talk about. Here are six helpful tips on how to decrease CPL!
1. Look over your past campaigns Cost per lead is basically a
ratio between two different things: How much money you spend and how many leads you earn.
If you want to lower your CPL, you have to either spend less money or earn more leads.
One of the best ways to earn more leads is to just look at what’s worked for you in the
past. If you’ve been marketing for a while, odds are you’ve had some really successful campaigns
and some less successful ones. Look back at your performance and figure out which tactics generated
a lot of leads, and which ones didn’t. It’s okay. Then you’ll want to try to replicate the tactics
that worked really well, while avoiding the ones that didn’t. Maybe your content marketing strategy
was generating a bunch of high-quality leads, but your paid ad campaigns were not getting you the
results you wanted. This example is easy - you can lean more into the organic (or unpaid) content,
which has a direct impact on your budget and your CPL. You may also adjust your ads to see
if any changes you make improve your return. Just make sure you pay attention to your
analytics as you go. 2. Run some A/B tests
Another way to improve your campaigns and get more leads is to use A/B testing. A/B tests
are where you take two different versions of something and test out each one to see which
gets you better results. You could use A/B tests for ads, webpages, emails, and more.
So, let’s say you want to lower your CPL for your email campaigns. The best way to
do that is to create emails that convince more people to enter your sales pipeline. So, you can
create two versions of an email. Then you get your testing audience and you send one email to
half your subscribers, and the other email to the other half, to see which one drives more leads.
If one version of the email brings in more leads, you know that’s the version you want to use. Then
you can keep A/B testing other improvements later on so your emails keep getting more and
more optimized to drive lots and lots of leads. Just remember to keep track of what you changed,
and fend off the desire to change many things at once. The more changes you make in your
different versions, the harder it will be to figure out what led to your success.
3. Target more specific and relevant keywords If you’re using search engine optimization,
or SEO, that means a lot of your marketing comes down to targeting specific keywords in Google.
Same goes for if you’re using paid search ads. In both cases, you target particular
search terms to help you reach the right audience. But if you’re not targeting the right keywords,
you’re also not going to reach the right audience. Even if they’re driving leads,
it may be that some other keywords out there would drive even more leads for you.
You want to target keywords that are really specific to a particular audience, and also
really relevant to your business. Targeting relevant and specific keywords helps you reach
people who are interested in your company, plus it helps you avoid wasting money on people who
don’t care about you. Target long-tail keywords, which are several words long, since they’re more
specific and have less competition. You also have a better idea of the user’s search intent.
Like if you were in the business of selling cars, it might be better to target specific types of
cars, like “best midsize sedan for commuters” instead of just “cars”. You don’t really know what
someone’s looking for when they search “cars”. Are they trying to learn how they work? Do they
just want to look at cool photos? When someone searches for a specific vehicle with a purpose
in mind, you know they’re more ready to buy. Oh, and for paid ads, you can also use negative
keywords. That’s where you tell Google Ads to specifically avoid targeting certain keywords.
Like, maybe you sell used pickup trucks, but your ads keep showing up in searches for new
pickup trucks. You can tell Google never to show your ads for “new” truck searches
since that’s not relevant to you. 4. Hone your audience targeting
There’s more than one way to target the right audience. You don’t have to rely
only on keywords — in some cases, you can also target your audience more directly.
For example, when you run paid ads, depending on the platform, you can choose specific
demographics, psychographics, or firmographics that you want to target. Plus, you can gather
first-party audience data from people who visit your website and use that data to target people.
This is great for making sure you’re targeting the people who are most likely to become leads.
To help you do that, you’ll want to research your customers and figure out which sorts of people
most commonly buy from you. Then you can use that info to create buyer personas, which are fictional
profiles that represent your target customer. Then, you’ll want to adjust your audience
targeting —and your campaign creatives — so that they align with your buyer personas'
characteristics. Those characteristics might relate to their interests, age,
location, occupation, and more. 5. Segment your audience
Targeting a specific audience is easiest if you only sell one thing. But if you’re like
most businesses, you sell different products or services. It just could get complicated.
Just because someone is interested in your bank’s home loan services doesn’t mean they
want to know about your business loans. If you try to market to all your potential customers at once,
with the same message, it won’t go well. In cases like that, you want to segment
your audience. That means you divide your audience into different groups and use separate campaigns
for each one. When you do that, you’re able to make your campaigns much more specific
to those groups, so they’re more effective. You don’t just have to segment based on products
or services, either. You can segment your audience based on their interests or their location.
6. Shift your focus to less expensive strategies Some marketing strategies cost more than others,
especially if you’re competing against a lot of people for your audience’s attention.
A great way to lower your CPL is to use marketing strategies that cost less money,
just as long as that cost-cutting doesn’t affect how many leads you’re earning.
A great example of this is paid search advertising and SEO.
Both of those strategies use search results to reach users and send them to your website,
where they can become leads. But generally speaking, paid ads may cost way more than SEO.
SEO is organic marketing, which means you could technically do it for free,
although you may want to assign a value to your time investment and the cost of
any tools you choose. Or the investment you make when partnering with an agency.
Once you optimize your website for search engines, you may see results rolling in for months,
maybe even years, after you’ve finished your original batch of work. Paid advertising requires
a monetary investment for you to reach your audience, whether you pay for clicks on each ad
or for every thousand impressions. Once you shut off your campaign, the results stop coming in.
Just so we’re clear, it’s a good idea to use both SEO and PPC. They have their pros and cons, but
they’re really valuable when used together. But if your CPL is struggling, it could be because you’re
investing too much in one of those areas, and this isn’t just limited to those two strategies.
Well, that wraps up this video on how to reduce cost per lead.
If you’re interested in learning more about generating leads or managing
digital marketing campaigns, you can subscribe to our YouTube channel,
or to our email newsletter, Revenue Weekly. Thanks for watching, and we’ll see ya next time!
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