There is no straight forward answer to this question. In terms of analysis and how you are going to calculate what a lead or sale is worth, the more analysis you do, the better! However, before the analysis, you need to make sure that your landing page is doing everything it can to convert. So here are a few easy things to think about when putting your landing page together:

  • Consider your vertical – Different verticals need different approaches, a teeth whitening landing page is going to look very different for a debt management one. Think about the type of person you want to appeal to and keep it simple.
  • Is the page optimised? – If you have too many flashy graphics and auto play music, people are just going to get distracted and not trust the page. Plus if music starts blasting out of their speakers at full volume, people are going to hate you for making them spill their tea.
  • How many fields are there? – Is there enough incentive for people to fill out all the fields? If you are offering a high interest loan and making a person fill out 10 fields, conversion is going to be very low. If you are offering a £20 free bet on online bingo for three fields, conversion is going to be high. It’s all about getting the balance is perfect, a good rule to go by is; less is more. Don’t ask questions you don’t need to know the answers to. If you are going to call them up later, just ask for a number and contact name rather than their address, and then ask them their address on the phone.
  • Pre-populated cells are great! – People are lazy and pre-populated cells are a great way of stopping people from leaving. If you pre-populate fields with the most popular answer then people have less to fill in and more incentive to carry on.

So now you have a highly optimised page that is going to convert highly, you need to do some more analysis to work out costs and what a lead is worth. Let’s use the example of a car company for the rest of this piece or this is going to get confusing.

So the first question the car company is going to ask themselves is:
How much do we make off one sale?

Let’s say the company makes £1,000 off one car sale. They have a little bit of money to play with and a perfect use of this would be an email marketing campaign. Now the maths:

So the email gets sent out to a list of 100,000 people, they might get back 1,000 opens. Of those opens, maybe 100 clicks and 10 enquiries. These are pretty pessimistic numbers but better for me to be pessimistic than over confident.

Let’s carry on being pessimistic and say out of the 10 enquiries 1 of them converts to sale. A reasonable pay out would be £100 per enquiry (lead). So you pay £100 times 10 leads = £1000.


They broke even so what’s the point?

We’ll they could try halving the payout which would then double their investment – pay £500 but receive £1,000 profit. The issue is that it may just not stack up for the emailers at this rate – then the emailers would not send and there would be 0 profit.

It’s about getting a balancing act and making it work for all involved – if it doesn’t work for one party it doesn’t work for any parties.

Let’s go back to our example where the payout was £1000 and the advertiser broker even from the send – is this worthwhile?

Well one of the car companies (Ford I think) did some research that once people bought one of their cars, they tended stay brand loyal and buy future cars from them also. If we said that only 50% bought future cars, this would mean that actually they received 50% ROI on the campaign – only it may take years for that to be released.

There are of course more instant rewards – the buyer proudly drives around showing their new prize possession and telling of the great deal etc.

Looking on the other end, it may be possible that by increasing the payout by £20 their agency may be able to double the volumes on the campaign (if it stacks up better for mailers, they can send more volume to it). In that case the advertiser would actually lose money initially but be in profit in the future – would this be worthwhile? Ultimately, a call for the advertiser.

Your account managers can give a steer on these matters – unfortunately there is no one calculation which can give the answer to these queries, however your account manager will have years of experience in dealing with this very conundrum and can advise on the best way to position the offer.

Maybe, they can try and lower the payout to £50, however in a scenario like this, it‘s best to speak to your account manager. They will be able to give you a good idea on how you can keep traffic high but save more money.