Cost per lead fell by a third. Cost per customer went up.

When the cheapest leads produce the most expensive customers, the problem is rarely the marketing team. It is the metric they were handed.

By Steve 5 min read
Abstract bridge artwork for Cost per lead fell by a third. Cost per customer went up.

A marketing report shows cost per lead down by a third year on year. The management accounts show that each new customer cost more than last year. Both numbers are correct, both were produced honestly, and the gap between them is where a great deal of acquisition budget quietly disappears. The arithmetic is not subtle. Customer acquisition cost is cost per lead divided by the rate at which leads become customers. If cost per lead falls by a third but conversion falls by half, acquisition cost rises. The two metrics…

Keep reading for free

Create an account to read the rest.

The whole library is free. No card, no subscription, no trial that quietly ends. An account simply lets us know who we are writing for, and opens every article from here on.

  • Every article, in full, at no cost
  • New articles published every weekday
  • Takes about twenty seconds
Create a free account I already have one

Free means free. We will not charge you for the library, and you can read as much of it as you like.

Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

More on Marketing

Scroll to Top