Cost Per Lead and the Long-Term Value of a New Client

Sep 15, 2020 | Legal

Ever calculated your cost per lead? We do it for clients all the time.

After a quarter-century in the client acquisition business, LeadingResponse has connected professional services providers across the country with millions of consumers.

Let’s look at how cost per lead factors into long-term client value.

Client valuations

One of the nation’s biggest inbound marketing automation providers, HubSpot, tracks customer acquisition cost (CAC).

It’s what they spend on sales and marketing, including programs and activities, salaries, commissions, bonuses and overhead in relation to attracting and converting new leads.

HubSpot determines CAC by dividing these costs by the number of new customers.

Meanwhile, Huify, a small, regional digital agency (and HubSpot partner), measures customer lifetime value.

They define it as the estimated profit generated by a customer over the course of their business relationship with the company.

Calculating cost per lead

If you’re trying to attract more new clients and boost production, ask yourself the following question:

Am I getting a $3 to $8 back for each dollar I am investing?

If the answer is no, it may be time to calculate your cost per lead and change up your strategy.

Some companies and professionals in the industries we serve rely solely on digital channels to promote their services. Are you among them? If so, you’re missing approximately 40% of your audience who isn’t online.

That’s why we use digital and direct marketing channels.

Balancing it all

Even the most talented sales professional can find it challenging to juggle competing priorities. It’s important to serve existing clients, but you need to find new ones, as well.

Keep this in mind: people research companies before doing business with them. Therefore, if they see consumers sharing positive reviews on social media, they will assume they’ll have a positive experience, too.

On the other hand, if clients are complaining about a company’s products or service, that can hurt a salesperson’s chance of closing a deal.

Knowing your audience

Building relationships and earning clients’ trust is critical to the success of any business.

Since 1995, LeadingResponse has delivered one million campaigns. Along the way, we have collected massive amounts of client response data. As a result, we can identify your ideal customers using criteria such as income, net worth, home ownership, and ailment data.

Hyper-local targeting helps ensure we identify the right consumers, send the right invitation, and extend the right offer.

Being flexible and open-minded

LeadingResponse gives clients a wide variety of marketing options. Hybrid campaigns are popular right now, because they combine direct and digital channels to maximize reach and ROI.

If you live and work in an area where you can once again host a presentation in a restaurant or other physical location, offering an online attendee option can draw in consumers who either can’t attend a live event or are not comfortable doing so at this time.

Are you wary of webinars because you were doing mostly venue-based presentations before COVID-19 changed everything? We’ve found virtual events done right can be highly effective in engaging consumers who are researching their options.

You can either host a group online event; or engage consumers one-on-one. And if you’d prefer not to present to multiple attendees, you can boost client acquisition via appointment setting.

To learn more about our business growth solutions or explore the possibilities, get in touch with us.

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