Generating clicks in getting pricier by the day. Its on the dynamic increase mode. Works more on the airfare pricing structure. Higher the keyword search density, more is your cost per lead across all the social media platforms. There was a time when people literally paid less than a dollar to get clicks and generate leads. Did you know it takes around an average of 100 impressions for someone to make a click on your Facebook advertisements? Cost per acquisition (CPA) has continued raising because of the highest costs involved in B2B lead generation campaigns. Companies are looking for ways to cut their costs per lead on Facebook and other platforms.
Businesses are finding themselves in situations where they are caught between paying more for their leads or looking for strategies which help them organically. Something like blogs for generating most of their inbound leads. Or running campaigns that focus more on generating high quality leads. We come across situations where clients want to close their Pay-Per-Click campaign accounts on existing platforms like Facebook and focus on investing their advertising budget on platforms where the cost per lead is lowest without compromising on their lead quality.
Does it all boil down to who has the biggest advertising budget? Not necessarily, there are companies with smaller budgets and have been paying relatively lower costs per lead. They have been spending smartest to maximize their ROI. This article is a how to guide on how to cut your cost per lead on Facebook ads.
Here are 10 ways to maximize your ROI and cut your cost per lead generated on Facebook.
Create a realistic landing page
Lead generation is a simple process that requires highest levels of expertise in advertising strategies. Landing pages seem easy to understand but a lot of work goes into designing the one which will help further conversion and cut your cost per lead. A bad landing page will hurt your lead generation process in the worst ways. We would recommend doing the following when designing your landing page:
Ask only for the required informations
The purpose of landing pages vary per campaign type. Some require just the collection of email addresses to qualify your lead further. Do not ask for information which is not necessary for that particular campaign.
Let’s take an example. Assume you are running a list building campaign. So all you need is the email address and the first and last name in certain scenarios. Or assume you are collecting email addresses for growing your newsletter subscribers. We would recommend asking just for the email address in such newsletter subscriber campaigns. Ask yourself why do you need to ask the user to provide their first and last names in such campaigns.
Ask only for the required information. Look at your form fields. Find out if there is a form field you should not be including in your landing page.
Focus on just one goal
Do not create landing pages that have more than one goal. If you want to collect email addresses, then just have that goal and insert the email address form field in your landing page. Conversion rates suffer drastically when your landing page has more than one goal and your cost per lead increases when you have multiple goals on them. Visitors get confused when you have more than one goal.
Lets take another example here. Assume you want to generate leads for a particular service that your company offers. It would make no sense asking the users to instead signup for another service too on the same page.
This will create friction and goals will contrast each other. Visitors will leave your page without sharing their informations.
Insert a single Call to action on your landing page
If you are asking users to leave their email addresses for a free e-book, ask them just their email address. Do not force your visitors to click on further links until you have collected their email address.
If you want the user to perform another action too, then we suggest creating a re-direct after the Thank You Message notification. Let the user enter their email address first. You can create a re-direction after they hit, “Subscribe” or “Submit” button. Re-direct to a page you want them to visit only after they have subscribed.
Keep your CTA and vital information at the top of your landing page
It’s great your visitors are landing on your page. Does it mean they will scroll to the bottom and checkout everything? Landing pages which miss vital informations and do not include the CTA button at the top have relatively lesser conversion rates. This only increases your cost per lead on Facebook
Check out these landing page examples created by us:
Takeaway: More leads are generated when you focus on the single goal of your campaign in the landing pages. This helps you cut down your cost per lead on Facebook ads.
Find out best performing demographics
The best aspect about Facebook ads is the ability to retain an access to the data from your past campaigns. Look at the date from your past advertising campaigns. This looks something like this:
Kindly click on “View Charts” once you are inside you Facebook Ads Manager. Look for how your advertisements performed across age groups and gender. We assume you are running your ads within your target audience bucket and have other aspects figured out like why a particular Facebook ad performed better than others.
Lets say you are a clothing company selling only beach wears. If you look at your advertisement you can see that your ad is performing worst in the age group where people are aged over 50. This is probably because your beach wears do not serve the purpose of people aged over 50 within your location.
Another example could be that of SEO tools. Let’s say you are selling an SEO tool that helps companies with their SEO. If you look at your demographics, you can see that your software sells best when you target SEO professionals. Does not make any sense selling that to an HR professional whose only job responsibility is to hire candidates.
Bold and technology focused products fare best when you target a young audiences. Beach wears work best when you target people in locations that have beaches. SaaS software sells best when you target decision makers. Qualify your leads. Use the proverbial instance of marketing and advertising. Advertise where your consumers are.
Takeaway: Advertise where your consumers are. This will further cut down your cost per lead on Facebook.
Try Facebook lead ads
We advise trying Facebook lead ads if you are just starting out. Do not listen to folks who ask to stay away from Facebook if your focus is generating B2B leads. Facebook will cost between $1-2 per lead generated where as LinkedIn will cost you a minimum of $6.50 per lead generated.
Facebook pre-fills most of the information from the user’s existing profile credentials. Conversion rates are higher because users do not have to leave Facebook.
Pre-filled information and higher conversion when you are running Facebook lead ads decreases the cost per lead. Companies are able to skip the convincing process on Facebook Lead ads and that is why the conversion rates are usually higher.
Lead volumes are usually fair. You may want to look at the quality of leads generated. Usually on Facebook lead ads, the quality suffers until you are running the campaign with lookalike audiences.
Test campaigns with Messenger Chatbots
Its extremely easy to get a messenger chatbot. You probably have one already by now. Companies are not advertising not only on Facebook and Instagram, they are also experimenting with messenger chatbots. We suggest trying Mobile Monkey. Its extremely easy to install. UX is extraordinary.
E-commerce and SaaS companies are testing this in bulk. You can send automatic content to visitors who message you from your business page. Chatbots have made it easiest to let the customers feel you are valued. Content sharing has been phenomenal in various cases. Automate your chatbots or get a real human being to answer the queries. Open rates are the best in messenger campaigns.
We advise having a closer look at the goal of your campaign. If you just want to collect the email addresses, messenger chatbots are better. Though lead qualification rates tend to be lowest on messenger chatbots. Please look at your campaign goals.
Takeaway: Test out Facebook Messenger ads and see how they work before investing a huge budget on messenger chatbots and related campaigns. Messenger chatbots will help you cut down your cost per lead on Facebook ads further.
Use Facebook’s proprietary lookalike audience targeting
Facebook has around 1.75 billion active users per month as of now and not every user is your customer. Neither every user is going to be interested in your offer. You sell where your consumers are. Showing ads to non-consumers is a wastage of your time and most importantly, money. Audience targeting happens to be at the core of any kind of online campaign. Does not matter what your goal of the campaign is. You just can not be everywhere and in front of all the users.
We gave an example of a company that sells beach wears. Would you advertise yourself in front of users who are not around areas that have beaches? At least, not until you peeped into their calendar and know they are traveling to destination that has mostly beaches.
You can either go for detailed or lookalike targeting within your Facebook campaigns. Detailed targeting will have more wastage, because not everyone who stays in beach areas is fond of beach wears. It would be dumb to assume and conclude everyone is interested. Some might be interested in taking a walk along the beaches but not necessarily be your consumer for beach wears.
Assuming you were that company selling beach wears, detailed targeting will lead to wastage of your advertisement budget to a certain extent. The campaigns often end up as just being guesses and not a high performing ad set.
Here is how you can create look alike audiences on Facebook:
Move to “Create Ads” on Facebook and look for this screen image.
We suggest creating look alike audience only if you have an existing data of your customers and are comfortable uploading that on Facebook. Wait It out if you are just starting out.
Facebook creates lookalike audiences based on the data your provide them. Let say you gave them a list of 5000 people who bought beach wears from you in the last 3 months. Facebook will populate your new lookalike audience on the said basis. They will create a list of audience who are most likely to buy your beach wears.
Click on “Create New” under the audience tab as highlighted in this image.
Upload your list of past customers on Facebook
Facebook then creates the lookalike audience as per the customer data uploaded on it.
Takeaway: By uploading your customer list on Facebook, you are ensuring Facebook shows your advertisements only to those users who are most likely to buy from you. This helps cut the cost per lead on Facebook ads. The conversion rates are better when your target your audience bucket using lookalike targeting method.
Out of Box Approach
If you are just starting out, you should consider platform that offer advertising with guaranteed clicks option. For example, our proprietary “Click Plans” campaign method.
Let’s say you are a new B2B SaaS startup looking for initial beta level customers to test the market. Assume you are looking at getting 100 potential consumers who might sign up later. Our customized click plans will help you achieve your goal. In this scenario, your campaign will continue being advertised until 100 people have actually signed up and shown interest in being a beta level consumer.
Let’s take another example. Assume you are that imaginary beachwear company in perspective here and you wanted to have 100 qualified leads of people who will most likely buy your beachwear. Bouncegate will run that campaign until you have those 100 qualified leads.
Check out the image for further insights:
Your cost per lead will start getting down if all the steps involved is executed properly. If you are starting out, we suggest using Bouncegate’s proprietary “Click Plans” to generate that initial list of your customers. You can then use the data of new customers generated via Bouncegate to create a lookalike audience on Facebook. Using Bouncegate’s proprietary technology will help you generate best quality leads. You can cut down your cost per lead on Facebook ads further when you upload the list of your best customers to Facebook for an identical lookalike audience targeting.
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