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The Cost-Per-Lead Fallacy in Measuring B2B Lead Generation Investments (Pt 1 of 3)

Pointclear

As much as marketing and sales best practices—not to mention just plain common sense—dictate that cost-per-lead not play a prominent role in managing and measuring B2B lead generation investments, the metric continues to prevail. The problems and costs of a cost-per-lead approach.

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Leads are Hard 

Pointclear

I recently wrote a blog called How Much Does a Lead Cost. One point I made in that blog is that it is ludicrous to generalize about how much B2B leads should cost. One analysis documented the following: “The average cost per lead across all the companies surveyed is almost $200 ($198.44).

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The Dangers of Using Cost per Lead as a Metric to Measure Marketing

Pointclear

Twice over the past two years I blogged about the dangers of using cost per lead as a metric to measure marketing. As a foundation, I published three blogs in 2012 in which I outlined three critical elements that impact B2B lead generation costs in the complex sale: 1. as compared to $1,357.25

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The Cost-Per-Lead Fallacy in Measuring B2B Lead Generation Investments (Pt 3 of 3)

Pointclear

The introductory post in this series addressed the problems and costs of applying the cost-per-lead metric to measure the success of B2B lead generation investments. In the second post, we looked at elements of a complex sale that impact B2B lead generation costs. Not seeing the forest for the trees.

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Lead Generation Best Practices Part 7: Measure Beyond Cost-Per-Lead

Pointclear

The value of a lower cost-per-lead approach may have merit early in the funnel where inbound marketing and marketing automation can be helpful in moving large numbers of sales prospects to raise their hands and express interest.

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Dear CEO: Find out how well your team is nurturing its B2B sales leads

Pointclear

If you are paying (just as an example) $750 per appointment, and on average 40% or more of those appointments are with someone who cannot or will not buy, then you are actually paying $1250 per appointment—if you consider, as PointClear does, that unless it’s a qualified prospect it doesn’t count.

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What Determines Cost Per Lead

Pointclear

While most people wouldn't quibble with the above reality, many still measure marketing success based on the cost per lead. Take a look at the following cost per lead comparison. These numbers show what goes into generating a high-quality lead—and what it costs. It’s about value, not cost.