Definition
The average marketing spend required to generate one new lead.
Formula
Total marketing spend / Number of leads generated
How to measure
Divide total spend for a channel or campaign by the number of leads it generated in the same period.
Why track it
Cost per lead is an early efficiency signal for a channel, well before those leads have had time to convert into paying customers.
Example
A campaign spending $2,000 and generating 100 leads reports a $20 cost per lead.
FAQ
- What is Cost Per Lead?
- The average marketing spend required to generate one new lead.
- How do you calculate Cost Per Lead?
- Total marketing spend / Number of leads generated
- Why track Cost Per Lead?
- Cost per lead is an early efficiency signal for a channel, well before those leads have had time to convert into paying customers.