Cost Per Lead vs Revenue Per Lead

Tags: Lead Generation Metrics, Cost Per Lead,


Cost Per Lead vs Revenue Per Lead

B2B Lead Generation Using Revenue Per Lead vs Cost Per Lead

For years marketers have measured the effectiveness of marketing campaigns and events by assessing “cost per lead” as their indicator of success. This metric was traditionally used to measure the effectiveness of advertising and the lead was typically unqualified, meaning there was no presence of an identified project, budget and other qualifications.
While this measurement still may have some significance, it is important to note that “revenue per lead” is the true indicator of success. After all, what good is it to have a low cost per lead if the quality is not sufficient, meaning a low probability to produce revenue? In the “revenue per lead” paradigm, it is possible to link real revenue to lead generation efforts and determine the profitability.
Once the revenue per lead is determined, other figures of significance such as cost of goods sold can be factored in for a final analysis. The desired result should be high yield from qualified sales opportunities (qualified leads) and the ability to make future business decisions based on learned facts and findings.

Additional B2B Lead Generation Metrics material:

1) Why has the cost per lead paradigm lasted so many years?

2) Minecor B2B Lead Generation Program with Average Revenue per Qualified Lead: $7,529

3) How to setup your marketing system to track Revenue Per Lead

4) Customer Lifetime Value