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Tip: A lower CPL means you’re acquiring leads more cost-effectively. However, remember that quantity alone isn’t enough—also track lead quality and conversion rates.
Cost Per Lead is a performance marketing metric that tells you how efficiently your campaigns are capturing new prospects. While a lower CPL is generally beneficial, it’s essential also to consider downstream metrics, such as conversion to sale and lifetime value (LTV).
While CPL varies by industry and channel, here are some average CPLs (₹) to use as reference:
Industry | Avg. CPL (INR) |
SaaS / B2B Tech | ₹1,500 – ₹4,000 |
Education | ₹500 – ₹1,200 |
Healthcare | ₹800 – ₹2,000 |
E-commerce | ₹100 – ₹400 |
Financial Services | ₹1,000 – ₹3,000 |
Note: These are estimated figures and should be adjusted based on your specific sales cycle and LTV.
Scenario:
You spent ₹60,000 on marketing and received 400 leads.
Calculation:
CPL = ₹60,000 ÷ 400 = ₹150
Interpretation:
You are paying ₹150 for each lead. You can now compare this with your conversion rate and customer lifetime value (LTV) to assess whether this is a sustainable cost.
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Answers to Frequently Asked Questions
It depends on your industry, sales process, and profit margins. Benchmark it against your LTV.
Not always. You must also evaluate lead quality and downstream conversions.
Yes. Include total paid marketing costs and all leads generated, regardless of the source.
Monthly is ideal for agile decision-making, but quarterly gives a better overall trend.
Compare it to your average order value and lifetime value (LTV). If CPL exceeds what a customer brings in, it’s unsustainable.