Every year, SaaS companies spend a fortune on digital marketing. Most of them believe that the more money they invest, the better the outcomes will be. But occasionally, that's just not true. 

In this article, we will go through numerous methods for reducing your cost per lead (CPL) while still turning a profit. 

If you need help lowering your CPL, call us today. We help grow Top SaaS Companies through data-backed omnichannel marketing.

What Is Cost Per Lead?

Your cost per lead is the sum of money you shell out to bring on a fresh lead or prospective customer. It gives you an idea of the current lead cost so that you can project future costs and set objectives for your campaigns. The lower the CPL, the better value you are getting from your campaigns. If you see an increase in your CPL, it's clear that your marketing requires improvement and is becoming less successful. If the cost rises too much, it will consume more money from your marketing budget than the leads are worth, which is wasteful if conversion is the ultimate goal.

By keeping your CPL as low as possible, you can improve the ROI of your marketing campaigns while continuing to generate fresh, top-quality leads.

How Can You Decrease Your Cost per Lead?

Here are five suggestions to lower your CPL:

1. Concentrate on Your Targeted Audience

Your advertising strategy might not be generating as many leads as you would want. How do you fix this?

One way is to concentrate more on your target market. If your target market is sizable, it's possible that your lack of targeting in your advertising strategy is keeping you from seeing results. To gain better results, you should concentrate more on your target market.

By paying closer attention, you can create a campaign that better resonates with your target market. This will increase conversions, which will lower your CPL. 

2. Stop Wasting Your Time and Money on Low-Performing Keywords

Regularly check the effectiveness of the various keywords you are paying for. The ones that have been found to promote conversions should be tagged and improved, while the unsuccessful ones should be eliminated.

Always keep in mind that every keyword has the potential to convert someone at some time, but that doesn't imply you should use it indefinitely. It can be stressful to remove a popular keyword that has been getting lots of clicks, but if it doesn't convert frequently enough, it's a waste of time.

Change to a long-tail keyword that is more specific. Even though you might receive fewer clicks, the leads that do click on that advertisement are likely to convert at a higher rate.

3. Perform A/B tests 

The easiest technique to run paid adverts is to always have two of them running simultaneously so that you can do A/B tests. If you simply run one ad at a time, you won't be able to compare, assess, and learn from the results.

According to A/B testing, you need to use one advert as the control and one as the variable. The presence of too many variables can make it challenging to draw a judgment. Ensure that each advertisement is shown an equal number of times, and rotate them continuously. Make only one change at a time so you can discover what resonates with your audience the most.

Keep in mind that the winning advertisement is the one that generates more leads more effectively and lowers your CPL. You are not winning if people are clicking on your ads but not buying.

4. Eliminate Ad Fatigue

You’ve probably experienced the phenomenon when you see an ad so frequently that you start growing tired of it. That is ad fatigue.

If you want to reduce your CPL, it's important to make sure your audience doesn't encounter your ads too frequently. If your target audience starts to grow tired of seeing your advertisements, it could be detrimental to your advertisement campaign. This can eventually cause your target audience to ignore or grow accustomed to your advertisement, which will make it less effective. 

By keeping an eye on your clickthrough (CTR) rate, you can limit the number of times your audience sees your advertisement in order to prevent ad fatigue. If your CTR declines, you'll be aware that a new advertisement is required to maintain interest among your target demographic.

5. Regularly check results and make improvements

The final—but most important—way to lower your CPL is to frequently review your results and enhance your ads. Although it might seem obvious, we know how simple it is to neglect optimization while concentrating on the other things you're probably doing at the same time.

Summary
CPL is just one piece of the puzzle. However, if you can maintain a low CPL, your entire campaign will benefit. If you want to make a profit, you must keep your CPL low. At Falconics, we have the expertise and practical knowledge required to implement methods that can lower the cost of your B2B SaaS Marketing Agency while also increasing your profit. If you're looking for a company that drives results, look no further. Contact us today!