B2B Lead Costs: How Much Should You Pay for Leads?
B2B lead costs is a hot topic among entrepreneurs. If you want to grow your business, you need a strategy for acquiring new customers.
Many companies address their growth challenge through inbound marketing and the sales funnel. Whether online or offline: A steady stream of high-quality leads that the company can convert into
customers makes a business grow and thrive.
But what is the breakdown of the costs for leads? How can we find out if our investment is worthwhile and how can we reduce the costs of acquiring new customers?
What Are the B2B Lead Costs Comprised of?
Leads are not just any data – a lead is a czech republic phone resource contact that has an interest in your products or services. You have already gathered some information about the company and about its field of interest, thus the data, that you can use to work with the contact.
The idea is simple: the website offers useful information / an added value/product to the users in exchange for their contact information.
What is the Benefit of the Cost-Per-Lead (CPL) Model for Online Marketing?
The biggest advantage is that the CPL model allows you to better scale your advertising efforts. Knowing your costs per lead is an essential part of knowing, whether your advertising efforts are paying off.
The Application Areas of the CPL Model
Getting leads costs your money. If you look at the following table, you can see the average amounts for the B2B lead costs of some industries and segments:
SOURCES: HubSpot, MarketingCharts.com, Matchcraft, Prospect Marketing, Pulse Local Marketing, Survey America. Table translated from the site integratedmarketingassociation.com
The Average B2B Lead Cost
As you can see, the average B2B lead costs vary. They b2b leads: successful lead generation on linkedin depend on the industry, the target customer and the competition.
But what are these costs actually comprised of? In marketing, these costs are made up of:
Online marketing strategy development and optimization
Concept creation
Landing pages, sales funnels (web development)
Content strategy (YouTube, social media, blogs, videos, graphics)
Promoting (Facebook ads, LinkedIn ads, Instagram in-story advertising)
Creating campaigns
Fixed costs
Variable costs
When you research the Internet, you often find calculations, where the costs are only a few cents per lead. These amounts are a fraction of the total costs and include only certain methods or channels. You cannot compare this with the total costs for lead generation.
Cost Per Lead Calculation – an Example
Example 1: An example of an business to consumer database international hair product manufacturer
The lead cost formula:
Spending on advertising for all leads / Number of leads = CPL in Euro
Suppose you work in a medium-sized company that represents professional salon hair products. You have set yourself the goal of winning 150 leads per month. Your marketing lead has determined that PR, Google advertising, and content creation (blogging and video tutorials) are most suitable for acquiring new customers.
The marketing team, therefore, develops the following strategy:
The marketing mix is being revised. The company is now integrating PR articles and an inbound content strategy for the online channels. The branding is tailored to the buyer journey and the buyer personas.