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What is the ideal cost per lead & cost per SAL ( Sales accepted lead )

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

There might be many Google adwords campaigns running under several accounts. But all i wanted to know is the ideal cost per lead for your campaign. And also what is the ideal cost per sales accepted lead( Sales accepted lead is nothing but, a lead which is given to sales people and that particular lead progress to Level 1 Demo of a product is considered as Sales accepted lead) I am running  a campaign, in that campaign initially i was spending Rs.2500($37) per lead i.e, (cost per lead = amount spent/leads received) now after optimizing my ad im spending around 1900 per lead and for SAL im spending around 4500 to 5000

 

Now i wanted to know what is the ideal cost per lead and cost per SAL in software industry.

Any ideas? Please share your insights.

1 Expert replyverified_user

What is the ideal cost per lead & cost per SAL ( Sales accepted lead )

Top Contributor
# 2
Top Contributor

Hi Susan,

 

Interesting question. I think you will have to look at your business and the lead cycle plus how much value is actually acceptable when you talk about Cost per SAL, instead of Cost per lead using demand generation. Not every lead can be SAL, so identify the quality of the lead and then assign the actual cost attached in moving the lead from one stage to another. 

 

My 2 cents!

Pankaj

What is the ideal cost per lead & cost per SAL ( Sales accepted lead )

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# 3
Participant ✭ ✭ ✭

Hi Susan,  @pankaj1782 makes some great points to consider.  Also, i would add:

 

in my experience most businesses look at their cost per lead, or SALs as a percentage of the gross margin on each product or service sold.  But cost per lead is not the most important number, it is the return on ad spend ROAS which includes ad spend utilized that did not generate leads.  

 

Many businesses are comfortable taking total ad spend up to 10-15% of gross margin, and I have seen a few spend as high as 30%. 

 

hth