Trickshot Co-founder Kian N’jie explains how to plan a profitable lead generation campaign & why cheap leads are not always the way forward! 🤔 📈.
*All numbers in this video are fictional & illustrative.
Key takeaways.
- Lead quality has a bigger impact on ROI than lead cost
- You should always be assessing how many of your leads are actually valid & serviceable
- Operating cost should be accounted for when predicting profitability
- No lead generation campaign should ever run at scale without understanding these metrics first
Terms Glossary.
| Term | Description | Formula |
| Impressions | The number of times your ad was seen | NA |
| CTR (Click through rate) | The rate at which your ad was clicked vs how many times they appeared. Helps determine relevancy & effectiveness of your ads | Clicks/Impressions |
| Clicks | The number of times your ads were clicked | NA |
| Conversion rate | How often people (Clicks) converted on your site. Helps determine how effective you’re targeting, and on-site experience is. | Conversions/Clicks |
| Leads | A sales opportunity or customer contact. Can include a data captures or inbound phone call. | NA |
| Cost Per Click | How you are paying per click. | Ad spend/Clicks |
| Ad Spend | What you have spent in total | NA |
| Cost Per Lead (CPL) | How much you are paying for each lead | Ad spend/Leads |
| Refund Rate | The percentage of leads you generated that were invalid or not serviceable (Incorrect contact or missing details). Your first touch point for assessing lead quality | Invalid Leads/Leads |
| Net Leads | The number of leads you generated that were serviceable. | Leads – (Leads*Refund Rate) |
| Net CPL | The amount you are paying for each valid/serviceable lead | Ad spend/Net Leads |
| Lead to Sale % | The percentage of net leads that went on to purchase or make a confirmed sale | Leads/Sales |
| Sales | The number of confirmed sales | NA |
| Average Sales Value | Average value of a sale | Total Revenue/sales |
| Revenue | Amount of income generated | NA |
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