Comments on: Measuring ROI: Customer Acquisition Cost http://www.capelinks.com/blog/measuring-roi-customer-acquisition-cost/ Online Marketing, Advertising, Internet Strategy & Other Stuff Fri, 30 Dec 2011 17:47:16 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: CapeLinks http://www.capelinks.com/blog/measuring-roi-customer-acquisition-cost/#comment-575 CapeLinks Mon, 21 Mar 2011 18:04:26 +0000 http://www.capelinks.com/xpress/?p=405#comment-575 Agreed, some leads will require more effort to nurture and close. I didn't get into that in the article because I just covered the basics, but I see where you are coming from. I also understand that depending on what types of leads you are chasing and the sources they are coming from will make a difference in the overall lead cost due to time and effort spent in the process. <blockquote>...your calculations do not take into account the salary, commission, overhead required to convert that lead). What is a practical way to track this for each leadsource or campaign?</blockquote> You would have to average those closing costs (time, salary, effort, etc...) to be able to calculate the ROI more accurately depending on the type of lead and what kind of care and feeding it requires to close. You will probably find that leads from certain sources or that different types of leads will not require as much effort as others. Once you establish an average "closing cost" for each type of lead (phone, web inquiry, presentations, offline ads, etc...) apart from the ad spend, you should be able to tweak you calculations for each lead type to get a more accurate figure for the "actual" CPL on each lead type. Agreed, some leads will require more effort to nurture and close. I didn’t get into that in the article because I just covered the basics, but I see where you are coming from. I also understand that depending on what types of leads you are chasing and the sources they are coming from will make a difference in the overall lead cost due to time and effort spent in the process.

…your calculations do not take into account the salary, commission, overhead required to convert that lead). What is a practical way to track this for each leadsource or campaign?

You would have to average those closing costs (time, salary, effort, etc…) to be able to calculate the ROI more accurately depending on the type of lead and what kind of care and feeding it requires to close. You will probably find that leads from certain sources or that different types of leads will not require as much effort as others.

Once you establish an average “closing cost” for each type of lead (phone, web inquiry, presentations, offline ads, etc…) apart from the ad spend, you should be able to tweak you calculations for each lead type to get a more accurate figure for the “actual” CPL on each lead type.

]]> By: SeeVirtual Real Estate Virtual Tours http://www.capelinks.com/blog/measuring-roi-customer-acquisition-cost/#comment-574 SeeVirtual Real Estate Virtual Tours Sun, 20 Mar 2011 05:59:08 +0000 http://www.capelinks.com/xpress/?p=405#comment-574 Good article. I'm going through this exercise right now trying to set this up in our CRM. The CPL makes lots of sense and I'm able to do this. I'll be able to set up specific phone numbers for offline ads. However, when figuring out the cost per sale for offline sales (lead comes in and spending time is required over a couple phone calls, demos, emails in order to convert the lead), your calculations do not take into account the salary, commission, overhead required to convert that lead). What is a practical way to track this for each leadsource or campaign? I assume that each ad/campaign will bring in leads that require different closing times depending on the demographic it's reaching and the medium. E.g Conversion time from leads gathered at a presentation will be different from those gathered from a newspaper ad. Thoughts? Advice? Good article. I’m going through this exercise right now trying to set this up in our CRM. The CPL makes lots of sense and I’m able to do this. I’ll be able to set up specific phone numbers for offline ads. However, when figuring out the cost per sale for offline sales (lead comes in and spending time is required over a couple phone calls, demos, emails in order to convert the lead), your calculations do not take into account the salary, commission, overhead required to convert that lead). What is a practical way to track this for each leadsource or campaign? I assume that each ad/campaign will bring in leads that require different closing times depending on the demographic it’s reaching and the medium. E.g Conversion time from leads gathered at a presentation will be different from those gathered from a newspaper ad.

Thoughts? Advice?

]]> By: Local Lead Generation (Local Affiliate Marketing) » CapeLinks Blog http://www.capelinks.com/blog/measuring-roi-customer-acquisition-cost/#comment-544 Local Lead Generation (Local Affiliate Marketing) » CapeLinks Blog Fri, 14 Jan 2011 16:37:48 +0000 http://www.capelinks.com/xpress/?p=405#comment-544 [...] ads might be a tough sell at first, but this can be overcome, sometimes. Teaching them about their advertising ROI and customer acquisition cost can be a good ice [...] [...] ads might be a tough sell at first, but this can be overcome, sometimes. Teaching them about their advertising ROI and customer acquisition cost can be a good ice [...]

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