5 Ways To Decrease Your Cost Per Lead
Karen Sahetya Wednesday, December 5, 2018
Share this page with a friend
The question that gets asked over and over again in the Facebook™ ads space is: how can I lower my cost per lead WITHOUT sacrificing lead quality?
It’s become the million dollar question...literally. Figuring this out can cost you or make you an extra million dollars. Especially as we head into Q4 and holiday ad spends, it’s more important now than ever to make sure you’re doing these five things to reduce your cost per lead.
1. Social proof your ads
Why do people wait hours in line for a slice of pizza? How different can that pizza really be? The answer is simple. If that many other people are waiting in line then it must be worth waiting for. Facebook ads are no different. When someone sees an ad that 100+ other people have liked or commented on, they can’t help but see what the hype is all about. An ad with no interaction on it is a lot less appealing.
So how do you get a bunch of people to interact with your ad? Once you find your winning combination of copy and image (which we’ll talk more about in a minute), run a Page Post Engagement campaign to get more interaction on it. The objective here isn’t conversions, it’s social proof. Once you have some love on your ad, run your Conversions campaign using the same ad. You can even run your ad to an audience of existing happy customers who are more likely to share their experience when they see your ad.
Important tip: you have to use the same page post ID to keep the social proof on the ad you’re running.
If you do this, you’ll find that it’s often cheaper to get your ad in front of more people because your cost per impressions goes down AND because of the psychological element of social proof. You’ll also get cheaper leads.
2. Use exclusions
If you’ve already asked someone out on a date once and they turned you down, you either don’t ask the same person again or you at least ask a different way. Maybe they don’t want to go to a movie with you, but going to get ice cream is a whole different story.
Similarly, when you serve an ad up and someone doesn’t bite, don’t bombard the same person with the same message over and over again. This usually drives them to hide your ad or leave a nasty comment.
Instead, use your pixel events to create a custom audience of people who have already clicked on your ad and hit your landing page, but didn’t opt in. Then exclude that audience from your ad and retarget them (more on that below) with another ad.
3. Retarget your top of funnel
Keep your messaging fresh and consistent with where your potential customer is in their process with you. The first ad might introduce them to your product or service and help them self-segment by interacting or clicking your ad. This is a great place to add pure value with no major commitment on their part.
The second ad that person should see is not the same ad again, but a different one. Perhaps at this stage, they need to build a level of trust or familiarity with you. So show them a testimonial, a case study, or where you were just recognized in an article or with an award.
Next, now that they’re good and warmed up to you, create irresistible value. If you’re running ads for an e-commerce store, this might be where you offer a great bundle, free shipping, or an exclusive discount on exactly the product they were perusing in your store.
When you ask a cold audience for the sale right away at the top of the funnel, you may have some conversions, but they’ll be higher cost conversions than when you ask a warmer audience for the sale in the middle of the funnel. When you retarget people who show interest, you’re building a relationship and ultimately selling at a lower cost per lead or purchase.
4. Test your creative
We’ve all been guilty of it before. Throwing together an offer, picking the first attractive stock image we see, and getting it out in front of an audience we assume may be interested in it. This is a great way to completely miss the mark and never find out if it was your offer, your image, or your audience.
If you have a solid grasp on your audience, and you have an offer you know works, don’t skip the part where you should test multiple images with the same audience and offer. Why in the world would you do that?
Because the higher your click-through rate for link clicks are, the more people are seeing your landing page for less cost. Test at least two or three completely different styles of photos, color palettes, and subject matters to see what resonates the most with your audience.
5. Add authority to your funnel
There are a variety of ways you can get people to know, like, and trust you as they get to know you through your funnel. If you have credibility from third party sources, put it in your sequence of ads and on your landing pages. Do the same with testimonials and case studies.
We’re all more willing to hand money over to people we trust will do what they say they’re going to do. Use apps that show pop-ups in the corner of your landing pages so people see that others are actively viewing and purchasing your product.
With just a little bit of preparation and effort, lower costs and higher quality leads are within your reach. Through social proof, smart use of exclusions, a clean retargeting strategy, data-proven creative, and credibility, you can reach and develop the audience most likely to respond positively to your product or service.