Definition
CPL (Cost Per Lead)
CPL, or cost per lead, is how much you spend on marketing to get one enquiry, calculated as total campaign cost divided by the number of leads it produced.
CPL is one of the most useful numbers for service businesses, because it connects marketing spend directly to enquiries. It works best alongside lead quality: a cheap lead that never answers the phone is worth less than an expensive one that becomes a client.
To decide what CPL you can afford, work backwards from your numbers: how many leads become customers, and how much a customer is worth. That gives you a maximum CPL that keeps marketing profitable.
CPL in practice
A clinic spends PKR 150,000 on ads in a month and receives 100 enquiries, a CPL of PKR 1,500. If one in five enquiries books a treatment worth PKR 20,000, each new patient costs PKR 7,500 to acquire, which is comfortably profitable.
Related terms
Common questions about CPL
How do you calculate cost per lead?
Divide total marketing spend by the number of leads. For example, $2,000 spent for 40 leads is a CPL of $50.
What is a good cost per lead?
A good CPL is one that stays profitable after your conversion rate and customer value are taken into account, so it differs by industry and business.
What's the difference between CPL and CAC?
CPL is the cost of an enquiry. CAC is the full cost of winning a paying customer, which includes the leads that don't convert and sales costs.
How can I lower my cost per lead?
Improve targeting, landing pages and forms, respond to leads faster so more of them convert, and move budget to the channels with the best results.
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