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Written by: Leonard Parker | Solar News | 30th March
Solar professionals typically see cost per action, or CPA, marketing as a reliable way to control costs while generating leads. Since solar companies that use CPA marketing will only pay for leads when their target goals are completed, they often perceive it as more effective than partnering with a reliable lead generation source. However, many solar companies often overlook that the CPA campaign’s specific lead source makes all the difference. Using a reliable and trustworthy lead source —paired with your existing CPA campaigns— will better ensure you receive high-quality leads with high intent, to buy your solar products, resulting in a lower CPA and a higher return on investment. Here is how partnering with a reliable lead generation source can reduce your CPA.
The cost per lead metric is a way to measure how cost-effective your solar marketing campaigns are when generating new solar leads for your sales team. Ideally, you want your campaigns to drive high-quality leads with a high ROI and ultimately have a low cost per lead and cost per action. In hindsight, generating top-notch leads through marketing campaigns is not easy.
There are various types of campaign strategies that can affect your cost per lead. Such methods include adjusting keyword targets, on-site/off-site page optimizations, and routine A/B testing. Each strategy requires time to perfect and will ultimately deliver a variant in your cost per lead.
These components of marketing campaigns create variable costs per lead that are dependent on the type of campaign. These campaigns consistently need adjusting to balance and meet your target ROI. Marketing campaigns, offline and online, also require additional nurturing including, analyzing the data for campaign effectiveness (target ROI), managing the different messaging in the channels, and optimizing across campaigns to help meet conversion goals.
When comparing the number of resources required to build these campaigns for your business, lead generation services can provide a reliable and cost-efficient CPA. In addition to the savings in resources, you can, in most lead generation services, integrate your conversion data with their campaign data to review your conversion rates across these multiple sources. Ultimately, the services will include optimization to provide you the best marketing sources that your business can convert into your target ROI.
One major obstacle to successful CPA marketing campaigns is the amount of time it takes to build out each campaign. Whether it be a landing page or a unique form that you are creating, each asset needs a substantial amount of design and testing to generate quality leads for your sales teams. This DIY tactic can cost you valuable time and cause you to miss out on quality opportunities.
A steady supply of reliable solar leads can help bolster your conversion rates when your CPA pages and forms perform lower than expected. Of course, if you are engaged in CPA campaigns, you should still work towards refining your assets to capture more leads on various browsers, mobile devices, and desktop types. Lead generation professionals have years of experience refining landing pages for increased conversion, and they are able to help fill in the gaps here. Most lead services even include conversion optimization experts who manage browser and messaging conversion tactics. These resources are costly, but most lead generation services bundle this within your cost per lead.
Most homeowners want to feel empowered about the benefits of solar before deciding to move forward with a specific solar provider. That is why lead generation services understand the importance of nurturing homeowners before delivering the lead to their solar partners. Lead generation services can also educate homeowners about solar rebates and other items so they are well-prepared to have an active conversation with a solar partner, thus creating the best-case scenario where your sales teams can discuss the project thoroughly and efficiently while signing the customer faster.
Whether you are measuring CPA or cost per lead, it all drills down to your business’s return on investment. Managing many different marketing methods, by cost per lead, will help you reallocate costs to your best-performing campaigns. Those reallocated funds can be used for other marketing campaigns or spent on other parts of your business. When focusing on CPA campaigns and/or a reliable lead generation source, it is crucial that you monitor and manage your cost per lead. With every dollar saved on your cost per lead, this grows your ROI per customer.
Gregg Hicks is the Vice President of Modernize.