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Key Performance Indicators (KPI) by Bernard Marr

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Cost per lead

Strategic perspective

Marketing and sales perspective

Key performance question this indicator helps to answer

To what extent are the costs for generating new customers justified?

Why is this indicator important?

A key role of the marketing and sales function of a business is to create awareness and attract possible leads. However, many ways to attract new leads, such as buying marketing lists and following these up with direct mailing, cost money and businesses need to make sure the costs are justified. One popular KPI is cost per lead, which calculates how much has been invested in attracting potential customers (the body of prospects from which future customer revenue will be generated).

Cost per lead is a powerful leading ...

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