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What Is The Cost Of A Lead?

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What Is The Cost Of A Lead?

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The folks at Madison Logic just released an updated infographic that breaks down the cost of a lead across various industries. I published their research from last year as well because I think this information is really helpful for brands to benchmark themselves in their demand generation efforts.

What Is The Cost Of A LeadLead generation is consistently one of the top priorities of any B2B organization, but there is a big difference between generating leads and generating leads that actually convert to customers and revenue.

There is enormous disparity among B2B companies when it comes to lead generation practices. Many businesses waste money on unqualified leads or fail to nurture the qualified ones. And a shockingly large number have not even identified their sales funnel.

We’re deep into 2015 budget planning now, so when it’s time to finalize the Demand Generation line item on your marketing budget, do you know what content syndication should cost?  Do you know the average CPL in your industry or vertical for benchmarking purposes? Do you know how to make the most of that budget to generate leads that translate to real revenue?

What Is The Cost Of A Lead?

To get leads from us in Marketing, brands will have to pay $32 (down from $35 last year).

Healthcare leads cost almost twice that at $60 (down from $65 last year).

The Technology industry has experienced the biggest declines with a cost per lead of $31 down from $43 per a year ago.

And Human Resource leads are $38, down from $45 last year.

Madison Logic used their own database to compile the average cost per lead across several verticals, and the impact that lead filters can have on price. Not surprising to learn that the more questions we ask, the higher the cost of the lead. But those additional filters may not necessarily bring in better quality leads.

Refresher Course On BANT?

If you don’t know what BANT is, BANT is a common lead scoring technique of seeking to determine if a prospect has the Budget,AuthorityNeed and a specific Timeframe for making a decision to buy a solution. Some add an ‘S’ for whether there is a real project with a defined next Step. Lead scores will then be calculated based on a weighting for each of these factors.

So a really “hot lead” would be one where there is a budget to solve a defined need in a relatively short period of time and where the prospect has some authority in the decision process. This is a standard part of many mature organizations marketing demand generation process.

And in less mature organizations, serves as the main line of questions for sales discovery. So if you want to help sales out, answer these questions for them. And deliver them leads that are truly “ready to buy.”

Check out the full infographic below and let me know what you think in the comments below.

If you’re looking to boost conversions and revenue, don’t increase your lead generation budget, increase your knowledge of efficient, effective B2B lead generation and nurturing practices that optimize your budget and minimize waste. Here’s a handy infographic from Madison Logic to get you started.


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