Cost per lead is irrelevant (and this is why)


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It’s not only the wrong metric to watch, but it could lead you to deprioritize or turn off lead sources that are helping you make more money.

Leads are important, clearly. But not all leads are created equal. You may have lead sources that generate low volume at high costs, but with high conversion.

The closer you get to the sale, the more important the metric. Cost per lead isn’t all that interesting. Cost per qualified opportunity? Now we’re getting somewhere.

Of course, cost per sale is what you really want to measure and manage. But too many marketing organizations aren’t looking that far ahead. They’re focused mostly if not exclusively on their campaigns, and what they deliver to the sales team.

Their month-end reports might look good, with higher lead volumes at lower per-lead costs. But if those leads aren’t converting into opportunities or sales, it’s still a highly inefficient spend.

Cost per lead is irrelevant. Cost per qualified opportunity is much better.

But if you really want to be an effective modern marketer, you’re watching leads all the way through to the sale and optimizing your campaigns accordingly.

I realize this may seem rudimentary to some, but in reality (and in practice) most marketing organizations aren’t yet operating this way. Time to change.

Republished with author's permission from original post.

Matt Heinz
Prolific author and nationally recognized, award-winning blogger, Matt Heinz is President and Founder of Heinz Marketing with 20 years of marketing, business development and sales experience from a variety of organizations and industries. He is a dynamic speaker, memorable not only for his keen insight and humor, but his actionable and motivating takeaways.Matt’s career focuses on consistently delivering measurable results with greater sales, revenue growth, product success and customer loyalty.


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