Once a user takes a desired action on your landing page, conversion occurs. A user or potential customer converts into a customer. This customer may have purchased a product, signed up for a particular service, read a certain number of pages, signed up his email, or taken any action that you, as a business owner, deem valuable to your business and contribute to realizing your marketing targets.
The Cost Per Lead (CPL) is the amount you pay each time an action occurs on your landing page.
Set up and Monitor Your CPL Goal:
Your CPL is a significant number to monitor, for it demonstrates the value clicks are adding to your business. Therefore, you should continuously compare your current CPL and your desired CPL ( the optimal cost per lead).
If your CPL is too high and the cost of each action is too expensive, you need to optimize and reduce your CPL. On the other hand, if your CPL is too low and you find you can afford to pay more for a lead, we encourage you to raise your CPL to give your brand more opportunities to shine and win over more valuable clicks.
To manage your CPL, we recommend that you implement the Speakol conversion tracking code on your website.
How to Calculate your CPL?
What significantly affects your CPL is both the cost per click (CPC) and conversion rate. Your CPC is the amount you pay every time a user actively clicks on one of your campaign ads. Your conversion rate is the frequency by which users who actively click on your campaign ads go one to become actual paying customers or take action on your landing pages.
Excluding all other factors, once your CPC increases, so will your CPL; once your CPC decreases, so will your CPL. In the same manner, if your conversion rate increases, your CPL will decrease, and if your conversion rate decreases, your CPL will increase.
You can calculate your CPL by dividing the total amount of money spent by the number of leads. For instance, if you spend $1000 and you get 20 conversions, your CPL is $50.