Before you figure out why your cost per lead is high, first check if your Facebook CPM are high, since a high CPM will naturally lead to a high CPL. So we set out to measure the conversion rate and the cost per action for both lead generation and conversion campaigns, and we did so by taking data from all WordStream customers using those types of campaigns in the past 60 days. Learning to generate leads or gain more followers on your Facebook business page can greatly improve your company's results, but it comes at a cost. Conversion campaigns had a 5.7% higher conversion rate for a “qualified lead” and a 1.4% higher conversion rate for a demonstration.
You can use this strategy with any type of campaign, but it's very effective with lead generation campaigns specifically because, once again, if you combine that optimized lead ad experience with this type of fine-tuned targeting, you no longer have to choose between volume and quality. So, for example, if you're running a lead generation campaign firsthand and you know that you're going to send those leads to your parenting team for better training, simply ask for a name, email address, and any other vital information than your email marketing team you need to increase those potential customers. A good cost per lead on Facebook is relative to your sales funnel and can only be determined by measuring the performance of your potential customers to customers. Remarketing for your website's 30-day traffic is great; creating looks based on existing leads is even better.
One of the best ways to reduce the cost per lead is to use the lead generation objective with Facebook's built-in lead forms. Competitors in your industry advertise on the social media platform because they get results, whether it's more followers on their social media page, purchases on their online store, or calls to their physical location. It stands to reason that if you want leads that ultimately convert to sales, you should target Facebook users who are similar to your current customers. Alex Trpkovic, marketing director of Growbuds, explains how the brand launched “a lead advertising campaign on Facebook in early or mid-October, just before the Black Friday and Cyber Monday holidays.
However, while this will reduce your cost per lead, it is well known that it will generate a much larger number of lower quality leads. And when you take advantage of potential customer ads alongside a similar audience based on your current customers, that's exactly what you're doing: putting that optimized user experience in front of the people who are most likely to be in the market for your product or service the moment they see your ad.