For B2B marketers, the goal of lead generation is ultimately to generate orders.
However, it is the sales force that closes orders before receiving them, and it takes a certain amount of time, so it is necessary to set KPIs to determine whether the costs currently incurred to acquire leads are appropriate.
This time, we will think about setting KPIs in HR marketing.
About cost per lead and KPI
KPI is an abbreviation for key performance indicator. Refers to important items other than sales that must be achieved in order to achieve the company’s budget.
For sales, this includes the number of business negotiations, number of new acquisitions, average unit price, etc., and for marketing (including inside sales), it includes the number of inquiries, number of appointments acquired, number of leads acquired, etc.
Cost per lead refers to the cost per lead acquired, and is also known as CPL (Cost Per Lead).
Acquiring leads is important for acquiring new customers, and since it is located at the highest level of the marketing funnel, it can be said to be one of the important KPIs that determine future sales.
Regarding KPI settings other than cost per lead
In BtoB marketing, KPIs other than cost per lead (CPL) include conversion rate to MQL/SQL, negotiation rate, and order rate, which are based on the process by which acquired leads move deep into the marketing funnel. There are numbers expressed as percentages.
Similarly to the cost per lead (CPL), there are two methods: extracting the cost per lead at each marketing phase.
How to set an appropriate cost per lead
If your company has a properly managed database, I think the simplest and easiest way to understand is to divide the cost of acquiring leads by the number of leads acquired.
However, if you do not have a well-organized database, you will need to start by collecting data.
From there, you will automatically be able to determine the cost per lead required for new sales.
The cost per lead also varies greatly depending on how each company defines leads, such as defining inquiries that are likely to lead directly to business negotiations as leads, and including leads acquired through downloadable media, exhibitions, etc.
If you define an inquiry as a lead, it will naturally be high, and conversely it will be low for leads obtained from downloaded media or exhibitions.
The cost per lead will also be higher if the target is limited, such as company size or executive position.
Cost per lead for download media
For your reference, we will introduce the cost per lead specified on the site of performance-based download media.
- Boxill material 10,000 yen
- IT trend inquiry/material request/download 10,000 yen per item
- BizOcean 5,000 yen per downloaded material *Success fee menu
In addition to the above, there are also download media that cost several thousand yen each. These details are not uniform from download to inquiry, but I think you can get a rough idea.
However, depending on the media, it is often said that the enthusiasm of the users who converted (CV) was less than expected, so we recommend that you use this as a guideline only.
Also, it seems that prices at events and exhibitions range from 8,000 yen to 10,000 yen.
(Reference source:
Measurement and evaluation of BtoB marketing effectiveness – recommended KPIs are CPL and CPO
)
If you have a fixed-term guarantee like our HR professional, the cost per lead can be kept low if you can get a lot of leads, or vice versa.
In the case of downloadable media, it is a good idea to consider whether the media’s members can be targeted by your company, in addition to the performance-based and period-guaranteed advertising options.
◆Summary
◆ Lead acquisition is important for acquiring new customers, and as it is located at the highest level of the marketing funnel, it is one of the important KPIs that will determine future sales.
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◆The unit lead price varies greatly depending on the leads defined by each company, such as defining inquiries that are likely to lead directly to business negotiations as leads, and including leads acquired through download media and exhibitions.
◆In the case of download media, it is a good idea to consider whether the members of the media can be targeted by your company, in addition to performance-based and guaranteed-term advertising menus.