Lead Generation ← Back to Glossary

Cost Per Lead (CPL)

Cost per lead measures the cost of generating one lead (form submission, phone call, or other inquiry), calculated by dividing marketing spend by leads generated. CPL helps evaluate channel efficiency and campaign performance. Unlike CPA, CPL measures lead generation rather than final customer acquisition.

How This Applies to Home Care Marketing

CPL is a key operational metric for home care marketing because it’s measurable more quickly than CPA—you don’t have to wait for the full sales cycle to evaluate campaign performance. Typical home care CPL ranges from $50-300 depending on market, channel, and lead quality requirements.

However, CPL alone can be misleading. A campaign generating $75 leads that rarely convert to clients is worse than one generating $200 leads with high conversion rates. Always pair CPL analysis with lead quality metrics to understand true channel value.

Key Takeaway

Track CPL by channel and campaign, but don’t stop there. Follow leads through to client conversion to understand which sources produce the best value. A slightly higher CPL from one source may be worthwhile if those leads convert at significantly higher rates.

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