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Cost per Activated Lead

What is Cost per Activated Lead?

Cost per Activated Lead measures the costs involved in generating one activated lead. An activated lead is a potential customer who demonstrates intention to purchase your product.

Alternate names: Cost per Lead

How to calculate Cost per Activated Lead

ƒ Sum(Total Cost of Generating Leads) / Count(Activated Leads)

Example

If you spend a total of $10,000 on marketing and advertising which generates 1,000 activated leads, your Cost per Activated Lead is $10,000 / 1,000 which is $10.

More about this metric

An activated lead, also known as Product Qualified Lead, performs certain actions that tag them as highly likely to purchase your product. This may include inviting others to your platform, sharing the results they’ve achieved with your products on social media, or visiting your app multiple times a week. Once you’ve identified the telltale signs of conversion to paying customers, you can classify all users who display these signs as activated leads.

Cost per Activated Lead lets you track how much money it is costing you to generate activated leads, typically summing up your total marketing spend. It is useful to know this information because not all leads are the same, and you ultimately want a higher percentage of activated leads who eventually turn into paying customers.

Additional Cost per Activated Lead recommended resources

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