Budget, budget, budget – how much do we have, is it adequate, where do I put it ? That’s the question plaguing most marketers when they embark upon their planning cycle. And more often than not, they find it a challenge to define a starting point which will help them allocate their budgets across high impact mediums. That is where a CPL or cost per lead analysis is helpful. It does not need to be thoroughly scientific, although the more specific and scientific it is, the higher are the chances of succeeding.
A good starting point is to analyze your existing spends and the net revenue generated from them. Divide the revenue across the mediums used to ascertain a rough estimation of revenue per medium and then match it against the actual spend on that medium. That will give a basic sense of CPL of each medium and help you dig deeper into the mediums with high CPL to analyze cost saving opportunities or whether the medium can be shelved and used for other purposes such as brand building, awareness etc.
It is also important to define you lead properly to be able to objectively measure the success. Ideally you would want the prospect to proactively engage with the company is some manner to assign that prospect as a lead. So, for instance, rather than assigning all 1000 participants to your event/conference as a lead, it would be beneficial to analyze what other actions have your attendees taken to progress their knowledge of your products and engage with your company. This may be in the form of white paper downloads, clicking on the post event emails, engaging on event specific social media platform etc. Thus, a more scientific approach to lead scoring would help you prepare effective dashboards and a thorough CPL analysis which will be extremely beneficial, not just in allocating budgets but reducing costs and improving overall processes leading to higher conversions and revenue.