Lead Acquisition Budget is similar to Customer Acquisition Budget except this budget is for acquiring leads instead of customers.
Using the same example as we do in Customer Acquisition Budget, you offer scar removal service. You are willing to pay $150 for another customer who will pay you $1500. How much should you budget for a lead now?
That depends on how good you are at turning a lead into a customer. Let’s say 5 leads contact you for scar removal services, you can convince 2 people to hire your services.
Knowing you are willing to pay $150 per new customer, we know you are willing to pay $300 for 2 new customers. To get 2 new customers, you need to speak to 5 leads. In order words, you are willing to pay $60 per lead* ($300 / 5 leads).
Lead Acquisition Budget
Lead Acquisition Budget is similar to Customer Acquisition Budget except this budget is for acquiring leads instead of customers.
Using the same example as we do in Customer Acquisition Budget, you offer scar removal service. You are willing to pay $150 for another customer who will pay you $1500. How much should you budget for a lead now?
That depends on how good you are at turning a lead into a customer. Let’s say 5 leads contact you for scar removal services, you can convince 2 people to hire your services.
Knowing you are willing to pay $150 per new customer, we know you are willing to pay $300 for 2 new customers. To get 2 new customers, you need to speak to 5 leads. In order words, you are willing to pay $60 per lead* ($300 / 5 leads).