Overcautious CPL Targeting Can Sap Lead Volume

A recent Target Marketing magazine article addressed a common direct marketing challenge: A cost-per-lead (CPL) target in testing winnows acceptable lists or media and scales down roll-out for fewer potential leads. This occurs because conservative marketers prefer tested lists/media that outperform a target CPL to guard against any unexpected roll-out declines in response. That caution may actually undermine maximized results, however. Article author Chuck McLeester presents an alternative strategy of combining a test's "big winners" in terms of CPL with its "little losers" -- for a larger cumulative universe that will deliver more leads at an acceptable cumulative CPL. Of course, both winning and losing lists/media from a test should be re-tested at larger quantities to make sure response holds up before going to roll-out. Yet the end result of a cumulative-CPL strategy can be a big boost in cost-effective lead generation: McLeester provides an example that takes roll-out from a little over 4 million impressions, out of a potential 15 million, up to more than 12 million impressions, while keeping well within the target CPL. For his spreadsheet analysis example, see http://www.targetmarketingmag.com/blog/how-maximize-your-lead-volume-within-your-allowable-cost-per-lead#