What are the functions of the marketing channels?

What is the average cost per lead and customer acquisition across different marketing channels?

  • I'm trying to compare the average or range of costs per lead and conversions for online marketing channels.  I've had trouble finding good data on this and am specifically interested in CPC, CPM, email marketing, affiliate marketing and daily deals.  If you have information or good resources on any of these, I'd greatly appreciate your contribution.

  • Answer:

    So far I found the following data:  Direct Marketing Association 2010 Trend Report: Email: Open rate 19.47%, click thru 6.64%, conversion 1.73% Paid search: CPC $3.79, 3.81% conversion Dispaly Ads: 4.43% conversion Direct Mail: 3.42% response rate Catalogues: $47.61 cost per lead Telemarketing: $309.25 cost per lead, 6.16% response rate Source: DMA 2010 Response Rate Trend Report http://www.the-dma.org/cgi/dispannouncements?article=1451 Marin Software Quarterly online marketing benchmark report Q3, 2011: Cost per click (CPC) avg across all industries: $0.71 Click through rate (CTR) avg across all industries 1.95% This report also breaks down paid search by industry Facebook ads: CPC $0.24, CPM $0.21, CTR 0.09% Source: http://www.marinsoftware.com/downloads/Q3_2011_benchmark_whitepaper.pdf

Jonathan Krieger at Quora Visit the source

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I think where you want to get to is what is your customer acquisition cost given certain marketing activities. This slideshare will walk you through that, as well the ratios you need to understand bewteen marketing spend and revenue generated to ensure your company remains profitable:http://www.slideshare.net/aaronvidas/the-sales-lying-hidden-in-your-saas-company

Aaron Vidas

This data also really varies depending on industry. Can you give us some more information? As I assume you are tying to use this data to make decisions for your or someone else's business

Sean Dawes

I agree with both Sean and Aaron. This is a loaded question and unfortunately broad averages will do you no good in your own business. You’d really want to explore what you are marketing, and what the conversion funnel looks like. Identify comparable conversion “steps” and focus on conversion rates.Aaron’s slideshare is fantastic - particularly the focus on the first (and most important) metrics for SaaS businesses - cost per acquisition (or customer). Baselining your CPA and optimizing it every day for the rest of the life of your business across every marketing channel is what demand marketing is all about in the SaaS world. The data that Jonathan was able to locate is certainly helpful to help you determine if any of your conversion rates or ad unit costs are way out of wack. Beyond that, I would recommend developing a culture of competition and data. Baseline the data throughout your organization and work to beat it - thus your new baseline. Rinse and repeat. It sounds elementary, but if you build the right culture and hire the right people with a competitive spirit and a knack for numbers… game changer.Good luck!

Parrish McIntyre

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