As a marketer or entrepreneur, you are always on the lookout for ways to optimize your lead generation strategy. One popular way to measure the effectiveness of your campaigns is by looking at the Cost per Inquiry (CPI). CPI is a metric that measures the cost of generating an inquiry from a potential customer.
In this post, we will discuss everything you need to know about CPI and how it can help you increase leads while keeping costs low.
CPI refers to the amount you spend on generating each lead. It is calculated by dividing the total cost of your lead generation campaign by the total number of inquiries received.
CPL and CPI are two metrics commonly used in lead generation campaigns. The primary difference between them is that CPL measures the cost of generating each qualified lead that meets specific criteria, such as demographic information or level of interest in your offer. In contrast, CPI refers to any inquiry that shows interest in your product or service, regardless of its quality.
CPI allows marketers to measure the success and efficiency of their lead generation campaigns. It provides insights into how much they should invest in lead generation efforts, which channels are delivering more inquiries, and how those inquiries convert into sales.
Several factors can affect your CPI, including:
To reduce your CPI, you need to identify areas where you can improve efficiency while maintaining or improving quality. Here are some tips:
Lead quality plays a crucial role in determining whether or not achieving a low CPI translates into actual revenue. Low-quality leads may have a low cost-per-inquiry but will not convert well into actual sales. Therefore, when measuring success with CPC, it's important also to track other metrics like conversion rate and overall revenue generated from inquiries.
