Calculating Cost-Per-Lead; Easy with Call Tracking Software

These days it’s likely most businesses are buttoning down and focusing on getting the most out of their budgets, including their advertising and marketing budgets.

Cost-per-lead is one calculation that can help determine how effective your advertising campaigns are at bringing in leads that you can turn into sales.

Advertising cost-per-lead is defined as the cost an advertiser
incurs in order to generate one lead from an ad placement.  The value is calculated by
analyzing the price paid for a campaign divided by the number of
responses generated by the campaign.

ex: $5,000 / 225 Call-ins = $22.22 Cost per Lead

The lower the cost-per-lead, the more effective your advertising campaign.

There are services that can calculate your business’ advertising cost-per-lead in real-time. Call Tracking software providers, like 800response, have IVR platforms that allow you to plug in the total amount of your campaign, and then as calls come in, the cost-per-lead for that campaign is automatically updated instantly. 

So, at any time, you can log in to your Call Tracking reports and monitor how effective a current campaign is at generating leads for your business.  And, this service also allows you to scrutinize specific media buys, for example a buy you place on a specific radio station, so that you can monitor that station’s performance.  This invaluable information lets you analyze and modify media buys so you are getting the best return on investment, reducing your cost-per-lead and improving your overall ROI.