Did you know billions of dollars are spent on marketing every year? Most people think the more money spent, the better the results are going to be. Sometimes that’s just not the case.
There are multiple ways to reduce your cost per lead (CPL). To get started, you need to determine your current cost per lead. Simply said, add up your marketing expenditures and divide by the number of leads generated. Once this is established, you can look into different ways to reduce the cost per lead.
Here are a 6 tried, tested, and proven ways to reduce your cost per lead (CPL).
1. Understand your traffic and eliminate poorly performing inbound channels
Digital marketing allows for a much more direct conversion stream than other forms of marketing. Google Analytics is a very powerful tool that allows businesses the opportunity to track conversion information on their websites. You may be able to eliminate poorly converting channels / keywords from your marketing mix if you understand the data that’s being generated. Far too often, home service companies fail to identify poor quality lead channels which drives up the cost per qualified lead and acquisition.
2. Know your audience and target your ideal customer profile
In a world influenced by social media, everyone knows everything about everybody. Advertising platforms offer a wide variety of targeting options for businesses. In order to reduce wasted ad dollars, target people who fit your ideal customer profile or people that are in-market for your products & services. Did you know that with digital you can target demographic profiles such as household income as well as “in-market” consumers who are actively working on home improvement projects? Getting smart with your targeting can ensure a better quality lead at a good price.
3. Test, test, and test! Keep what works and crush what doesn't
The beauty of digital marketing is that data is available with the click of a button. We never know what response to expect until we try it. As a business, you are able to run multiple creatives, ad copies, and messages at the same time to figure out the appetite of your customers. You may find rather quickly that one ad converts better than another. This testing process will allow you to optimize your campaign to drive more leads.
4. Reduce poor quality leads through campaign optimization
This ties into testing but it’s so important that we want to reiterate it. Let’s look at PPC (pay per click). If you identify you are getting clicks and calls for products & services that your business doesn’t offer, it’s an indication that optimizations need to take place.
What are those optimizations? You can do things like raise/change bids, review keyword match type, insert negative keywords & Q/A conversion tags are functioning properly in order to improve leads.
5. Drive more organic traffic with better Google rankings
In case you didn’t know, organic traffic is free. Who doesn’t want more of that?! Google provides multiple ways to drive organic traffic to your website. Getting into one of Google’s key positions is the tricky part. Search Engine Optimization (SEO) is the practice of ranking organically on Google so in-market consumers can find your products & services. With a well thought out SEO strategy, your organic website visits should be your best quality lead producing channel by far.
In today’s world, SEO is a critical marketing component for every business large or small. The more relevant organic traffic you can drive to your website, the lower your cost per lead is going to be. It’s the single best way to reduce your overall cost per lead!
6. Make sure your website is set up for conversions.
Why on earth would you spend tons of money to drive traffic to a website that is not set up to convert leads into customers? We get it. It’s easy to get caught up in the business of running your business. But don’t neglect your website. Make sure your website is lightning-fast, mobile-first, reduces friction by making it easy for your visitors to call and builds credibility by showcasing your customer reviews. By optimizing your website, you’ll benefit from a better user experience that generates more conversions from visitors.
We all want to make the most of our digital marketing dollars and efforts. If you focus on these simple tips, it should help your business do just that.