If your advertising budget is disappearing and there are no applications and leads, you need to analyse your work and find out where and what you are doing wrong. Specialists from Arabesco Sideral Unipessoal explained the factors that influence the cost of attracting potential customers.
Let's start with a little theory. Leads are people who have shown an interest in your service or product. In other words, a lead is a potential customer who has taken a targeted action: filled out a questionnaire or left a request for a callback. Generating leads is one of the first stages of the sales funnel.
CPL (cost per lead) is a metric that shows the cost of acquiring a lead. It is calculated by dividing the cost per lead by the number of leads.
Bad offer
Why does a lead cost a lot of money? First of all, it could be because your offer does not attract the customer's attention. It may be badly written, it may have the wrong emphasis. Entrepreneurs are often guided by their own opinions: "I like it, so everyone will like it". But this is wrong. People have different needs, tastes and interests.
You have to sell what sells. There are many aspects to consider when choosing a product. In particular, the level of people's interest, types and categories of goods (popular, seasonal, trendy, "wow" goods, goods that solve problems), etc. This determines the intensity of demand. If you have chosen a product that solves a problem, but only a few people are interested in it, you will not get a large number of leads. With the help of an offer, you need to show the customer the benefits, the uniqueness of the offer, the reason to buy the product from you and not from your competitors.
Your target audience
You should know your target audience well, read them like an open book. You should understand the surface and underlying problems of your target audience. This has a direct impact on how effective your marketing will be. The more precise your advertising campaigns are, the better you 'aim', the lower the cost per lead.
Website design and functionality
An online store's website is a very important element of your product business system. Accordingly, the cost per lead depends on it. For example, you sell construction tools and your website is designed in soft pink colours. If a brutal man goes to it, sees the pink background - he is likely to want to close the page and find another trading platform.
The amount of text, the quality of the content, the layout of the blocks, the convenience of the search, the informative menu, etc. - all this affects the behaviour of potential buyers on the site. If a person cannot easily and quickly find the product he needs, he will look for other online shops. It can happen that the site is of high quality, but a few buttons do not work - and that's it, the customer will not be able to perform the desired action. The site should work perfectly, be informative and user-friendly. You have to pay a lot of attention to this.
Creatives
Creatives used in advertising campaigns should get your message across to potential customers. If the ad creative view rate is greater than 2, there is something wrong with the ad creative. A person has seen your ad twice but has never visited the site.
Creatives should show emotion, the joy of using the product. An important element is motivators that encourage your customers to take action. Apply AIDA. This is a model of consumer behaviour that describes the events that lead to a purchase decision: Awareness → Interest → Desire → Action.
Advertising
Many people think that all they need to do is launch an advert and customers will come flooding in. However, not every creative works effectively from the first launch. Advertising usually goes through three stages: testing, optimising and scaling.
During the testing phase, you need to test your hypotheses, creative, offers, etc. Analyse the results to see where you went wrong or underperformed. Then optimise your creative. Only then should you scale your campaign. If the ads are working - the number of leads will increase and their cost will decrease. If not - the cost per customer will be high and your advertising budget will be depleted.
The price of a lead depends on a number of factors that you need to manage correctly. Arabesco Sideral's team of professionals will help you develop and implement an effective customer acquisition strategy.