Decreasing the Cost Per Lead can significantly impact business and campaign success, and fortunately there are lead generation best practices, strategies and tips that can help you to reduce your cost per lead in 2024.
Your Cost Per Lead (CPL) is the amount it costs for you to pay for each lead generated. If you spend $100 and acquire 10 leads, your CPL is $10.
Every business has an ideal CPL based on the return and lifetime value of their lead, and defining the maximum CPL prior to launching lead generation activity is important to ensure you can optimise activity towards this, and also gauge if this activity is valuable to your business.
1. Targeting
Your chosen audiences will heavily impact the success of your leads campaign. If the targeting is relevant, engagement with the campaign will be high and the volume of leads will be higher, resulting in a lower cost per lead. Here are our top targeting tips for lead generation campaigns:
Use Lookalike audiences of your high performing existing audiences, such as previous customers, website visitors, and those who engaged with your Facebook page. Lookalikes are increasingly outperforming many other prospecting audiences and are highly valuable.
Split audiences out into their own Ad Sets to enable greater control of budgets for high / low performing audiences, and to gain useful insights when it comes to reporting.
Test narrower and broader audiences, and specific and dynamic settings for the first 5 days of the campaign, before continuing with the winner.
2. Ad Creative
The pure purpose of this creative is to convert a prospect to a lead. Therefore it should get straight to the point and:
Grab attention
Engage
Clearly sell the proposition - why should this user become a lead?
The more leads the Ad creative generates, the lower the Cost Per Lead.
Test a video and a static Ad format of your creative, as performance of each will vary per audience and placement.
Include multiple copy versions for each Ad to reduce creative fatigue, and give Meta more to work with. Meta will dynamically serve copy to audiences based on what the machines predict will work for each user, providing more options means you will hopefully engage a broader range of users.
2. Retargeting
Include a retargeting layer to your campaign, to stay front of mind with your engaged users and remind them to take the next step of becoming a lead. The set-up might be as follows:
Include:
Facebook & Instagram engagements in the last 5 days
Watched video from the Prospecting Lead campaign
Exclude:
All leads
If your lead campaign is running for over 30 days, the retargeting campaign should really contribute to the overall performance and cost effectiveness of your lead generation activity as it will establish and improve over time.
If the retargeting campaign works hard to top up your total leads in a cost effective way, then the lower your overall cost per lead will be.
4. Lead Magnets
Lead magnets are used to incentivise users to become a lead. Including an incentive will almost always increase the lead rate, and will result in more leads and a lower cost per lead.
The key here is to offer something that is truly valuable to your audience.
Here are some proven winners across a variety of industries:
Gyms / fitness / health clubs
% discount
Free class pass
Free towel / bottle / bag
Meal plan
PT session
Event venues
Case studies of previous successful events
Free event planning session
Event planning tools and templates
Additional perk (free coffee and cheese for example)
Subscription software provider
Insider knowledge / stats / trends / insights
% discount
Free upgrade
Online education
Full course guide
Additional resources
Free 1-1 tutoring
5. Lead Form / Landing Page
The lead form itself is vitally important to the success of your campaign. Our top tips for increasing your lead form or landing page conversion rate, resulting in a lower cost per lead:
Ensure the lead form / page is directly related and customised to the lead generation campaign
Include as few fields as possible while still getting all of the information needed to qualify your leads
Only request information that you actually need as having too many fields will reduce the conversion rate
Ensure lead forms are mobile-friendly
Include plenty of white space to help with readability, they do not need to be filled with colour and graphics as this could distract the user from the task at hand
Included bolded or colour-contrasted text above the form
Clearly explain what the form is for
Ensure the CTA button is bright and in a contrasting colour to the rest of the form design
Clearly display your privacy policy
Remove CAPTCHA - this might mean sifting through more spam, but it will increase your conversion rate
If offering a lead magnet, clearly showcase the value for the user
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