Content
- What is CPL
- How is CPL calculated
- Who is the CPL model suitable for
- How to attract leads
- How to increase CPL model efficiency
What is CPL
CPL (cost per lead) refers to the cost of one lead — a potential customer who has expressed interest in a product and provided their contact information. This term is used in two main contexts:
- As a metric that allows a business to calculate how much it has spent to attract each potential customer after conducting an advertising campaign.
- As a payment model where the advertiser pays a set amount of money for each lead received.
A lead can be any provided contact person, regardless of whether that individual will make a purchase in the future. This can be simple information such as a name and phone number, or a more detailed profile with several fields, including social media and address.
How is CPL calculated
To calculate CPL, the following formula is used:
CPL = advertising expenses / number of leads received
For example, if an online school launched a course and spent 40,000 rubles on its promotion through various advertising channels, and as a result received 800 leads, the cost of one lead would be 50 rubles (40,000 / 800). It is important to note that the cost of one lead can vary from 15 to 1000 rubles depending on the specifics of the business and the quality of the advertising channels.
If multiple advertising campaigns have been conducted for one group of products, their results are summed for a more accurate analysis.
Who is the CPL model suitable for
The CPL model is most commonly applied in areas where services or expensive goods are offered, as the process of attracting leads can be labor-intensive and costly. The main fields where the CPL model is used include:
- Online education
- Mobile games and applications
- Banking services and lending
- Real estate sales
- Beauty and health services (spa centers, clinics, beauty salons)
- Automobile maintenance and repair
- Legal consultations
Although these areas are the most popular, the CPL model can be suitable for any business that is willing to provide something in exchange for contact information.
How to attract leads
Attracting potential customers requires passing through several stages:
- Creating interest: Users are offered free services, discounts, or useful information, which serve as lead magnets.
- Offering: The user is invited to fill out a form, call the specified number, or write in the chat, which is recorded in a special database.
- Reward: The person receives what was promised to them.
- Working with the lead: After forming a contact database, email newsletters are sent, and calls are made to attract customers.
When collecting data, users can employ two methods: SOI (single opt-in) and DOI (double opt-in). SOI requires the user to only fill out a form, which can lead to a high percentage of low-quality leads. DOI requires email confirmation, which creates a higher quality database.
How to increase CPL model efficiency
To enhance the efficiency of the CPL model, several recommendations should be considered:
- Correct target audience: Identify and understand your target audience. Advertising campaigns aimed at too broad an audience do not always lead to quality leads.
- Using multiple channels: Different users prefer different forms of interaction. Utilizing a variety of channels can help attract more leads.
- Setting up analytics: It is important to track conversion at all stages and analyze the results to understand what works and what does not.
- Advertising testing: Conduct tests before launch and during operation to determine which creatives are most effective.
- Implementing retargeting: Do not forget about users who have already shown interest but did not fill out the form. Understanding the reasons for their refusal will help eliminate barriers.
By applying these methods, companies can significantly improve the effectiveness of their advertising campaigns and enhance the number of leads received.