We all know that keeping the cost of a sales lead as low as possible is your goal. But is it realistic? Should your company be budgeting more? Here’s our take on it:
- LEAD COSTS VARY BY INDUSTRY: Retail $34/lead. Business Products $132. Consumer Products $105. Manufacturing $136. Technology $208. All are averages. None specifically for Moving & Storage.
- LEAD COSTS VARY BY COMPANY EMPLOYEE SIZE: 1-50 $147/lead. 51-200 $180. The average cost per lead in 2019 was $198.
- LEAD COSTS VARY BY LEAD CHANNEL: Display Advertising $63/lead. Referrals $73. Search Engine Ad (AdWords) $110. Content Marketing $92. SEO $31. Remarketing (AdWords) $31. Traditional Marketing $619.
- LEAD COSTS BY COMPANY REVENUE: <$1M $166/lead. $1M — $10M $185. $10M — $500M $179. $500M+ $429.
As you can clearly see, there is no exact number, but the key here is to realize that all leads cost money, and most leads cost a considerable amount of money. This should be factored into your calculations for achieving a break-even point on your average cost of sale, and as a result your average revenue per sale.
One valuable point that we can make here is that the cost of a lead will go down…on average…over time. The more valuable your reputation, or your brand is, the less you will need to spend on generating leads.
Onward and upward!