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Cost Per Lead
Business
WHAT IS IT?
Cost per lead is the average marketing cost associated with generating each lead or enquiry.
IN PLAIN ENGLISH
It tells you roughly what you are spending to generate an opportunity.
SIMPLE EXAMPLE
Spend £1,000 on marketing and generate 100 leads: cost per lead is £10.
WHY DOES IT MATTER
Cost per lead is useful, but it is only part of the picture. You also need to understand how many leads become customers and what those customers are worth.
THE ROCKET TEST
Cost per lead is marketing spend divided by the number of leads generated.
SEE IT IN ACTION
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