Costing of Lead Generation is influenced by:
B2C and B2B
The cost per lead varies dramatically between B2C and B2B leads. The reason is that the mechanisms used for lead generation is totally different between the two marketing methods – especially the channels being used (see below).
Cost Per Lead
A 2016 survey showed the following costs in the USA:
Curtesy of Nigel Lindemann from https://surveyanyplace.com
What is BANT?
BANT is THE biggest factor influencing the cost of converting a lead to a sale. BANT is a term used in Demand Generation to define criteria for leads/prospects.
BANT is a common lead scoring technique of seeking to determine if a prospect has the Budget, Authority, Need and a define 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 “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.
Does your business already have a web site? Is the traffic substantial? Can the traffic be used and monetized for lead generation?
The main factors influencing cost per lead are:
- B2C or B2B business
- Success of the current business website
- Effectiveness of Sales staff in converting leads into a sales.