While the bottom line always is important in business and essentially determines the likelihood of turning a profit, that profit can be improved by reducing costs per lead. Some marketing tools, such as tradeshows, are designed to greatly reduce costs per lead by increasing the pace by which the sales cycle is completed. Instead of spending months or even years working new leads, a tradeshow can generate dozens of new leads in a short time with greater conversion rates. The average cost of a lead at a tradeshow is about $5, and that is far better than any other form of marketing, but that does not mean there aren’t other ways to reduce costs per lead.
Conversion Costs Only Tell Part of the Story
Too many marketing professionals focus on costs per conversion as a primary metric for determining the success of marketing plans. But if the cost of obtaining the lead that eventually is converted is higher, that cost will be even higher due to the costs spent on leads that did not convert. Marketers must focus even more on the cost per lead than the cost per conversion to help improve business success and profitability. Reducing the cost per lead generally requires more precise targeting of potential customers and clients, which is why tradeshows can be highly effective marketing tools. They give marketers the opportunity to make important connections in supply, manufacturing, distribution and wholesale or retail sales of goods and services.
Precision Marketing Improves Costs of Leads
When marketers make an effort to better target their likely customers and clients, they generally reduce their operating costs by a great deal and lower their costs per lead. But to do so, marketers absolutely need clearly define the market segments they seek and then find the channels and vehicles that will reach them. The more direct the connection to potential consumers, the easier it is to emphasize the benefits of goods or services to those most likely to make use of them.
Are your costs per lead higher than they should be?
Originally posted 2014-08-01 21:44:25.