Cost per lead (CPL) is the average cost of getting one lead: a person who left a phone number, wrote to you, filled a form or signed up. The formula: marketing spend ÷ number of leads. It can be calculated for ads, for a specific campaign or for a whole channel, including the value of your own time.
For a small business, CPL is one of the most practical marketing numbers because it connects spend to sales conversations. If you know that roughly one in four leads becomes a customer and your average order is known, you can calculate the maximum CPL you can afford and stop campaigns that go above it.
Example: a renovation company spends €300 on a lead ad campaign and receives 25 requests for a quote, so the CPL is €12. One in five requests becomes a job worth €2,000, so the campaign clearly pays off.
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