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Why Measuring Success on Cost Per Lead is a Huge Mistake

Pointclear

In the search for the holy grail of marketing KPIs, we want ones that correctly emphasize ROI over lead cost, tie lead generation to overall revenue and profits, identify the most successful marketing initiatives and deliver insights that can be leveraged to run future high-return activity. Frankly, no.

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Why Cost per Lead is a Bad Way to Measure Your Return on Lead Generation Efforts

Pointclear

While cost-per-lead measurement has been the de facto favorite for evaluating marketing programs, we are seeing radical and positive shifts in how marketing is evaluating qualified leads. The cost-per-lead metric accomplishes none of the above. Cost-Per-Lead.

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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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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.

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Looking to enhance sales lead performance? Put process before technology.

Pointclear

Then implement the workflow that encourages both sales and marketing to be acccountable for their role in revenue generation. Finally figure out how you can deliver the marketing-nurtured opportunities that sales will follow up on and close. That is, by not using a cost-per-lead metric.)

Lead Rank 169
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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. Not only does this single-criteria measurement perpetuate the downward spiral represented by most companies’ poor sales results, it also reduces ROI on short- and long-term marketing and sales investments.