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.

TermDescriptionFormula
ImpressionsThe number of times your ad was seenNA
CTR (Click through rate)The rate at which your ad was clicked vs how many times they appeared. Helps determine relevancy & effectiveness of your adsClicks/Impressions
ClicksThe number of times your ads were clickedNA
Conversion rateHow often people (Clicks) converted on your site. Helps determine how effective you’re targeting, and on-site experience is.Conversions/Clicks
LeadsA sales opportunity or customer contact. Can include a data captures or inbound phone call.NA
Cost Per ClickHow you are paying per click.Ad spend/Clicks
Ad SpendWhat you have spent in totalNA
Cost Per Lead (CPL)How much you are paying for each leadAd spend/Leads
Refund RateThe percentage of leads you generated that were invalid or not serviceable (Incorrect contact or missing details). Your first touch point for assessing lead qualityInvalid Leads/Leads
Net LeadsThe number of leads you generated that were serviceable.Leads – (Leads*Refund Rate)
Net CPLThe amount you are paying for each valid/serviceable leadAd spend/Net Leads
Lead to Sale %The percentage of net leads that went on to purchase or make a confirmed saleLeads/Sales
SalesThe number of confirmed salesNA
Average Sales ValueAverage value of a saleTotal Revenue/sales
RevenueAmount of income generatedNA

 

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