On this page, we’d like to cover the importance of the CPL metric. We will also share a brief manual on how to use our Cost Per Lead calculator.
The CPL abbreviation stands for Cost Per Lead. Marketers need it to measure the performance of online marketing. It reflects the amounts you’ve invested into promotional channels to attract a lead. A lead term stands for a user who provided his/her contact information in the process of registration or the desired action. That contact data is used for further marketing interactions with the client.
It does depend on the business and varies from industry to industry.
But just like with other metrics, the CPL calculator provides us with numbers only.
And this index itself won’t tell you anything out of context. It should be considered in close relation to other metrics: CTR, average check, conversion rate, LTV, etc.
Moreover, even promo campaigns with lots of leads and low CPL may not bring the desired result if you have troubles with marketing strategy, like poor content on websites, broken forms for filling, and other kinds of failures. Therefore, be sure to test your landing pages, emails, texts, illustrations, buttons, etc. before launching CPL-based activities.
CPL is the ratio of money spent on a specific channel to the total number of leads engaged through this channel over a certain period of time.
Therefore, the cost per lead formula looks like this: Cost of promo activities divided by the number of leads attracted.
For example, we spent $2 000 on a Facebook ads campaign. That campaign brought us 1 400 leads. Lead cost is: $2 000/1 400 = $1.42
Knowing the CPL rate we can evaluate the performance of our campaigns and make the required improvements in time. Stripo is ready to help you with our calculator. Save time on routine processes, and redirect it into a creative vein!