As an example, let's assume a customer lifetime value of around EUR 10,000. To acquire a customer of this size, you are willing to invest 10% of the lifetime value (EUR 1,000) in the acquisition. These EUR 1,000 are the cost per action (CPA).
The next part of the equation depends on your sales team. If they typically convert 10% of all inbound leads into sales (i.e. their conversion rate is 10%), this needs to be multiplied by the CPA (10% x 1,000 EUR). The result of 100 EUR is the average cost per lead (CPL) or contact commission.
PPC PPL - Average CPL
The acceptable CPA is multiplied by the conversion rate to determine the estimated average cost.
Keep these numbers in mind when you look at your PPL campaigns to review costs. And remember that these numbers change over time.
Review your leads to make sure your average CPL and conversion rate are within budget. iran telegram data If your leads are too expensive, work with your sales team to increase the conversion rate, review the pricing structure, or find another PPL provider.
For a sales team, the logic behind a PPL campaign is the same as that behind a PPC campaign: if no one contacts your leads, they are of no use to your company.