Cost Per Lead (CPL)
The amount spent to generate a single lead or potential customer.
Also known as: CPL, Lead cost, Cost to acquire lead
Category: Concepts
Tags: marketing, metrics, businesses, analytics, growth
Explanation
Cost Per Lead measures marketing efficiency by calculating how much each prospect costs to acquire. Calculate CPL as: Total marketing spend ÷ Number of leads generated. CPL varies dramatically by industry, lead quality, and channel—a high-intent demo request costs more than a newsletter signup but converts at higher rates. CPL is meaningful when compared to: historical performance, industry benchmarks, lead quality (conversion rates to customer), and customer lifetime value. Optimizing CPL involves: improving targeting, testing creative, refining landing pages, and focusing on efficient channels. For creators, CPL helps evaluate: is paid advertising worth it compared to organic content? Which lead magnets generate affordable, quality leads? The goal is sustainable CPL relative to what customers are worth.
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