Every business owner agrees that attracting and converting new leads is vital for every brand’s success. Whether you convert visitors to leads on your website or in-store, this is what makes you profit. But how do you go about it? There are different ways but they’re not all equally efficient or affordable. Some old-school tactics rely heavily on marketing. Are they successful? The short answer is YES. However, these outbound marketing approaches use a lot of resources. Therefore, they depend on making sales to recover what they invested. Luckily, there are better ways to achieve the same or even better results. Inbound marketing, using existing opportunities instead of creating new ones, and advertising your product to an audience that is already interested will help you cut costs and convert new leads. Follow our guide for minimizing lead conversion cost and learn how to implement these ideas in your business.
How can you calculate your cost per lead?
To know how much you can save, you need to find out how much you spend. Cost per lead (CPL) is a valuable metric that shows you how many marketing dollars you’ve spent generating a lead. Ideally, you should have a low CPL. That means your marketing campaigns are very effective and you invested little to achieve a lot. So, how can you find your CPL?
In fact, it’s pretty easy. Find the amount you’ve spent on an ad campaign. Then divide it by the total number of leads you’ve generated. It’s pretty simple, isn’t it? Of course, if you’re running several campaigns at the same time, it will require a bit more effort on your part. However, it will also allow you to compare the results of different marketing approaches and show you which one works best.
Why do marketing campaigns often fail?
How do you know that your marketing campaign has been successful? Well, if it generates a lot of quality leads and it has a low CPL, you can confidently say it was great. However, many campaigns fail to do this. Why? In most cases, it’s the lack of understanding of what your audience wants. On your website, using ConvertMore click to call software will help retain visitors’ attention. However, your ads won’t have that card up your sleeve. Instead, your campaigns should capture your audience’s interest and motivate them to make a purchase. But to tailor your advertising strategy right, you need to know your audience first. In addition, there are other factors that affect success. You need to:
- allocate enough resources
- create engaging and eye-catching materials
- nurture your leads and provide follow-up
- track and analyze the results
Where to start with minimizing your lead conversion cost
The first thing you need to do is to see where you stand at the moment. Assess your current strategy to inform your future campaigns. How low (or high) is your CPL? Would inbound marketing help you reduce it? Could you improve your marketing content in some areas? Are you targeting the right audience? How long is the nurturing period? Do your marketing and sales teams work with the same goals in mind? Knowing the answers to these questions enables you to see what does and doesn’t work. Minimizing your lead conversion cost relies on making the right choices and optimizing your existing resources.
Rely on organic search when minimizing your lead conversion cost
Most people nowadays search and find what interests them online. For that reason, having a strong online presence is vital. However, relying on pay-per-click campaigns can be less profitable than you’d expect. Instead, what you want is for your audience to find you organically. Not only will you save money that way but also attract more leads. And the best way to do this is to improve your SEO, brush up on your keywords, and ensure your blog content is engaging and relevant. This will boost your Google ranking and help you stand out in the competitive market.
Segment your audience to increase lead conversion
Next, analyze your audience’s behavior and collect the relevant data. There are many online tools such as lead engagement software and others that can help you do this. But why is this important? Because by segmenting your audience you can tailor and place your ads in a way that will give you the best results. Pitching the right product to the right person at the right place and time is more likely to result in a purchase. Plus, you won’t be wasting your resources on leads that are not as likely to convert into customers.
Personalize your ad campaigns
At a time when ads are everywhere, people can get overwhelmed and desensitized. So they learn to ignore dozens and dozens of ads they see every day. If you want your campaign to be productive you need to overcome this feeling. Personalize your ads and your content to appeal to your ideal audiences. Adjust your language, get more personal, and gear your content toward your audience’s desires and needs.
Remarketing campaigns are more affordable, yet equally effective
It seems like low-effort work and it is. Shouldn’t you strive to always be fresh, new, and engaging non-stop? Actually, no. In fact, tweaking the campaign you already have and adjusting it to encompass a new product or a new segment of your audience will be equally effective. Plus, it will enable you to significantly reduce your lead conversion costs.
Email marketing can be a good tool
Just sending the same email left and right is not going to yield the results you want. However, if you segment your audience and create email campaigns that will appeal to different segments, you’ll be surprised. Email marketing can be a low-cost, yet incredibly effective campaign when used in the right way.
Run A/B tests of your campaigns
Lastly, it’s vital to constantly assess your campaigns and their productivity. That way, you can make valuable changes when necessary or switch your strategies if they don’t work well. A/B tests are ideal for doing this. Run two similar campaigns (with one or two different variables) and see which one does better. This will provide you with valuable insight for your future advertising and help you use your resources in the best way possible.
The bottom line
Success in sales depends heavily on your marketing success. However, advertising campaigns can be costly while also producing mixed results. Follow our tips for minimizing lead conversion cost and yet creating engaging and effective campaigns. Focus on your audience and what they want and make the most of the resources you have at your disposal.
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