Do you know what CPL stands for?
If you don’t know, not to worry, I will not only explain to you what it means I will also show you why it’s SO IMPORTANT to know your CPL (it can make or break your business.)
Rather than bore you with marketing terminology, I’m going to illustrate how CPL led to Dr. Sterling saving over $5000 in ONE MONTH without his new patient flow being affected whatsoever.
Meet Dr. Sterling, he runs 8 dental practices in the Brampton, ON area and is no stranger to investing in marketing/advertising. Utilizing several different types of advertising and marketing, Sterling Dental has grown rapidly in the local area and has become a household name.
However in the process in spending all this money on marketing/advertising, he had lost sight of which forms of marketing were actually working and which ones were not.
Using this 1 SIMPLE FORMULA, we calculated his CPL and the results were quite shocking.
If you are spending any sort of money on marketing, you should always know your Cost-Per-Lead or CPL. It is a measure of how effective your marketing is and whether it is actually profitable or not. The simple formula is as follows:
MONEY SPENT ON MARKETING ÷ LEADS GENERATED = COST PER LEAD (CPL)
Sterling Dental had the following marketing initiatives going in August of 2016:
$3000 on printed door hangers in targeted neighbourhoods
$2000 on a local newspaper advertisement
$1500 on Google Adwords (online marketing)
Up until now Sterling Dental was never really tracking the performance of each of their marketing initiatives. The overall strategy was simple “more money spent on marketing means more patients come through the door”. But the team at ClientFlo decided to dig a little deeper.
Utilizing separate tracking phone lines for each marketing initiatives, it made it MUCH EASIER to track the leads generated from door hangers, from the radio ad and from Google Adwords. The team at ClientFlo and Sterling Dental could log into the dashboard and view the phone calls generated from each initiative in real time. After just 1 month of tracking, it became blatantly obvious which initiatives were performing and which ones were NOT.
Have a look below:
Both “ClientFlo” and “Keyword Pool” were calls generated from ClientFlo’s Adwords program. So let’s quickly calculate CPL for each source:
$3000 on door hangers ÷ 1 phone calls = $3000 Cost per Lead
$2000 on local newspaper ad ÷ 5 phone calls = $400 Cost per Lead
$1500 ClientFlo’s Adwords program ÷ 79 phone calls = $19 Cost per Lead
I don’t think the picture could be painted any more clearer. This data made Dr. Sterling’s business decision quite easy. When it came time to renewing his budget for September, I am sure you can guess which one’s he kept and which one’s he cut.
So let me ask you, if you’re spending money on marketing, what is your current CPL?
If you’re not tracking CPL vigilantly, you may be overspending and underperforming. There are so many ways to generate new business, but staying on top of what’s working and what’s not will save you A TON of money in the long run, just like it saved Dr. Sterling over $6250.
The team at ClientFlo are EXPERTS at generating leads at the LOWEST COST POSSIBLE utilizing digital marketing. If you are actually serious about growing your business, click the button below and schedule a date/time to chat with me.
I will show you how to generate leads on auto-pilot using our Adwords system, WITHOUT needing a large marketing budget.