Cost-per-Lead, frequently abbreviated CPL, measures how cost effective marketing campaigns are at generating new leads. This metric is important because it provides a benchmark to establish sales goals, marketing budgets and the appropriate amount of money to spend per new lead.
To arrive at your average Cost-per-Lead, divide your total spend on lead-generating marketing activities by the number of total leads received through those efforts.
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Dig deeper into Cost-per-Lead by segmenting your CPL by channel and campaign. Through segmentation, you will be able to identify your highest- and lowest-cost marketing efforts. Next, look at CPL and conversion rate data together. This insight will allow you to identify ways to lower your CPL without losing leads.