How to reduce the cost of lead in the CPA model

The CPA promotion model, which was discussed in the article “What is CPA-marketing”, allows brands to effectively spend marketing budgets. The essence of this approach is as follows: investing in promotion, a business pays only for real leads (calls, bids, deals).

What are the main advantages of working on leads for business?

  1. Payment is made only for the agreed result;
  2. Seasonal market fluctuations are taken into account. In other forms of promotion, as a rule, seasonality is not taken into account (in the "low" season there are less leads, and the client pays less, in the "high" season there are more leads and higher pay)
  3. It is profitable for the optimizer to work not only with channels to attract traffic, but also with conversion on the pages of the site.

One of the main problems of moving through leads is the high cost of attracting a client. In the most competitive topics, it rolls over, which is why brands are forced to choose less expensive ways of promotion.

To solve this problem, use tips to reduce the cost of leads. First of all, they are applicable in cases when you use contextual advertising to generate traffic. However, these tips will also help reduce the cost of a lead if you use other ways to attract visitors, including content marketing, SMM, pay-per-view advertising, etc.

Tip 1. Reduce the cost per click in PPC campaigns.

This is the easiest and fastest way to reduce the cost of lead, without changing the site or business proposal. Lowering the cost of a click, you affect the cost of attracting traffic, which, in turn, is converted into leads.

Suppose you pay an average of 150 rubles per click, and the conversion rate is 5% (out of 100 transitions, you get 5 leads). The cost of a lead can be calculated using the following formula:

(150 * 100) / 5 = 3000 rubles.

If you want to pay 2000 rubles per lead, then the cost per click is too high. It is easy to make sure that the cost per click does not exceed 100 rubles so that you reach the target cost of the lead.

Reduce the cost per click in PPC campaigns with an eye on the position of your ads to keep a high CTR. Use the Google Analytics Experiments module to assess the impact of a reduction in cost per click on traffic and conversion.

Tip 2. Increase the conversion rate of landing pages.

The cost of a lead can also be determined using the following formula:

CPA = funds spent on attracting traffic / conversion rate.

Increasing the conversion rate reduces the lead cost. To increase conversions, pay attention to landing pages. Use split testing to determine the mood and needs of the audience and make the landing page more conversion.

Tip 3. Use specific low- and mid-frequency keywords.

As noted above, by controlling the cost of a click, you reduce the price of the lead. The use of low- and mid-frequency keys in PPC campaigns instead of expensive high-frequency ones minimizes the costs of attracting traffic.

In addition, increasing the specificity of keys in contextual ads, you have a positive effect on the conversion. Pay attention to the different needs of users who enter the phrase "Nokian winter tires" and "Nokian Hakkapeliitta winter tires" into the search box. The author of the first request, probably while studying the features of tires of the respective manufacturer. The author of the second request is likely to make a purchase. Therefore, the second request will be more conversion. At the same time, its frequency in Wordstat is 89, while the frequency of the general query is 1493.

By the way, using a wide semantic core with an emphasis on "long tail" keys reduces the cost of a lead if you rely on content marketing and organic search traffic. (Yes, in general, PPC channels are fully applicable).

Tip 4. Give up low conversion keys

This step improves the overall effectiveness of the PPC campaign. However, do not use it without thinking, as this can harm the business. Consider each key with a low conversion rate separately. Perhaps the phrase "buy skis" is not converted because it is spring outside?

Tip 5. Optimize the texts of advertisements

This step very often increases the CTR of ads without increasing the cost of a click. Remember the "holy trinity" of PPC campaigns - the relevance of the ad and the landing page to the search query.

Pay attention to the illustration:

An Internet user enters the query "apply for a credit card" into the search box, since it has a corresponding need. Contextual ads are relevant to his query. Having chosen one of them, the future borrower gets on the landing page relevant to his request:

This landing page is relevant to the search query, of which the user is satisfied in the first seconds after landing. In this case, the ad text and the landing page header provide a visual response with the search phrase. This is how the "holy trinity" of PPC campaigns works.

Experiment with ad text, identifying the option that provides the highest CTR. The text should not only emphasize the relevance of advertising search query, but also stimulate the user to go to the site. For example, this can be done by mentioning the benefits and advantages of your offer.

Tip 6. Improve your product

Improving the business proposal, you automatically reduce the cost of lead. This is true for both PPC and other promotion methods.

Explore the market to choose a product improvement method. Perhaps your competitors offer customers big discounts? In this case, you also have to reconsider the approach to pricing. However, do not get carried away - frank dumping does not lead to good.

Perhaps the audience needs quality service? Surprise potential customers with fast and inexpensive delivery, warranty service, free advice on using the product or just a cup of coffee and a smile.

Of course, improving the business proposal will require additional investments. But they will definitely pay off if the product really becomes more valuable to the consumer.

Thus, one of the main problems of the CPA promotion model remains the high cost of the lead. To solve it, try to reduce the cost of attracting traffic. Use low- and mid-frequency key phrases, relying on organic traffic or contextual advertising. Choose specific keys to attract ready-to-deal consumers.

Ensure that the ad and landing page are relevant to the user's search query. Pay attention to the conversion of landing pages. Finally, constantly improve the business proposal. Stay tuned for the price, offer customers additional services. Become the best business in your niche - it is guaranteed to reduce the cost of lead.

The materials used are 8 Tips to Reduce Your Cost-Per-Conversion by Nick Supapol.

Watch the video: Pay Per Lead: Pay Per Lead Problems and Mistakes To Avoid 2019 (April 2020).


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