Trickshot Co-founder Kian N’jie explains how to plan a profitable lead generation campaign & why cheap leads are not always the way forward! πŸ€” πŸ“ˆ.

*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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