The CPL Trap

In the world of paid ads, many businesses fall into the trap of thinking that the lower the cost per lead (CPL) the better. 

It's easy to see why, I've been there myself. 

When you see that number dropping, it feels like you’re getting more for your money. 

But here’s the thing: a low CPL doesn’t mean much if those leads aren’t turning into actual customers.

The CPL Trap

Imagine this: You’re running a campaign, generating a lot of leads, and the CPL is impressively low. But a few months later, you notice your sales haven’t increased as much as you expected. 

What went wrong? That's the story of quite a few clients I've worked with.

The truth is, focusing only on CPL can be misleading because it doesn’t consider the quality of those leads. 

It's like collecting baseball cards. You might have a hundred cards, but if none of them are rare or valuable, they don’t help you win a game. 

A thousand leads at a low cost might seem great, but if they’re not turning into people who are: 

1. Interested in your product (what we call Marketing Qualified Leads or MQLs) 

2. Likely to buy after learning more (Sales Qualified Leads or SQLs)

Then you’re basically pouring money into a leaky bucket.

In this newsletter, we’ll dive into why shifting your focus from just getting more leads to getting better quality leads is crucial, especially if your business has a long sales cycle or deals in high-ticket services. 

We’ll explore how using CRM data—think of it like a treasure map that shows you where the valuable leads are hiding—can lead to more qualified leads and, ultimately, more sales.

CRM: The Secret Weapon

CRM data is your secret weapon to improve PPC lead quality. There's no arguing that. 

It’s one thing to get a lead; it’s another to understand what happens after they show interest in your product. This is where CRM data becomes your best pal.

Think of CRM data as the compass that guides your marketing strategy. Instead of navigating blindly based on surface-level metrics like CPL, you’re able to see the bigger picture. 

For example, by integrating UTM data—tracking codes that show where your website traffic comes from—with your CRM system, you can track the performance of your PPC campaigns beyond just the initial lead generation. 

This allows you to see which campaigns are generating leads that actually move through your funnel and convert into sales.

Let’s say you’re running a PPC campaign. Without CRM data, you might only see that Campaign A is getting leads at a lower CPL than Campaign B. 

But when you look at the CRM data, you might discover that the leads from Campaign A are stalling at the MQL stage, while leads from Campaign B are moving on to become customers. 

This deeper insight allows you to make smart, data-driven decisions, like shifting your budget to Campaign B or tweaking Campaign A to better attract the right leads.

In essence, CRM data helps you move from just generating leads to generating the right leads. 

It’s like carefully aiming at the right target instead of firing off as many shots as possible. 

By focusing on the quality of leads—even if it means paying a bit more upfront—you’re setting up your business for sustainable growth. 

Does this really work? Glad you asked.

Listen To The Numbers

To show how powerful CRM data can be in improving your PPC campaigns, let’s look at a real-world example: a SaaS company in the construction industry. 

They faced a common challenge—generating lots of leads at a low cost, but struggling to turn those leads into paying customers.

When I came on board, the first thing we did was connect their PPC efforts with their CRM system. This allowed us to see how leads moved through the sales funnel. 

We quickly saw that while their ads were attracting a lot of interest, many of those leads weren’t making it past the "interested" stage (MQL). In other words, the leads were either not ready to buy or weren’t the right fit for their services.

Armed with this information, we changed their paid media strategy. 

Instead of casting a wide net and hoping for the best, we acted like snipers choosing their targets to focus on segments more likely to become clients.

We used CRM data to create audience segments and tracked how each group responded to different ads. We then adjusted our bids and ad creative to match what we learned.

The results were impressive to say the least: 

The number of leads increased by 62% - yep, even more than what they had before even though this wasn't the main focus.

The number of people who were genuinely interested in the product (MQLs) jumped by 118%, and the number of potential buyers (SQLs) grew by 34%.

And the cherry on the top, the cost to get each lead dropped by 55%, and the cost to get an MQL fell by 59%.

By focusing on the quality of leads instead of just the quantity, the company was able to use their ad budget more effectively, bringing in more revenue and lowering their overall customer acquisition costs.

By taking a more focused, sniper-like approach, you can generate more qualified leads and it will likely result in more leads, too. In other words:

A more sustainable and profitable marketing strategy.

Your Play Book 

Of course I wouldn't show you how your CRM can add rocket fuel to your PPC and just leave you hanging. 

01) CRM-Based Audience Segmentation and Retargeting

One of the most effective ways to improve lead quality is by using CRM data to create targeted audience segments for your PPC campaigns.

For example, if your CRM data shows that certain actions or behaviors often lead to a sale, you can create segments that specifically target those high-quality leads. 

On the flip side, you can also create exclusion lists to avoid showing ads to people who are unlikely to buy, which helps reduce wasted ad spend.

Additionally, CRM-based retargeting allows you to stay in touch with leads who have already shown interest but haven’t yet made a purchase. By delivering personalized messages that speak to their specific needs or stage in the buying journey, you can nudge them further down the funnel. 

This approach makes sure your ad spend is focused on those most likely to become customers.

02) Use UTMs, Use UTMs, Use UTMs

Yes, saying it 3 times to ensure it sticks. But I'm not talking about throwing in random parameters.

UTM parameters are like labels that help you track where your website traffic is coming from. But they can be even more powerful when you tag your campaigns with labels that show where the leads they generate are in the buying process. 

This way, you can see which campaigns are actually moving leads through the funnel, not just generating clicks.

For instance, you can add labels like “MQL” or “SQL” to your campaigns to identify which ads are expected to generate leads at different stages. By analyzing the performance of these campaigns in your CRM, you can gain insights into which strategies are most effective at turning leads into customers.

This level of detail helps you make smarter decisions about where to spend your money. 

For example, if a campaign consistently generates leads that become potential buyers (SQLs), you might decide to increase the budget for that campaign or create similar campaigns to replicate its success. 

By focusing on the quality of leads at each stage of the funnel, you can make sure your PPC efforts contribute to long-term growth, not just short-term lead generation.

03) Lead Scoring and Predictive Analytics

Lead scoring and predictive analytics are like tools that help you figure out which leads are most likely to become customers before you spend too much money on them. 

Lead scoring gives each lead a score based on how likely they are to buy, while predictive analytics uses past data to predict which leads will turn into customers.

By integrating lead scoring into your PPC strategy, you can focus your efforts on getting leads that have a higher chance of becoming customers. This approach allows you to filter out low-quality leads early in the process, saving time and money.

Predictive analytics can also help you spot patterns in your data that might not be obvious. 

For example, it can show you which actions or traits are most likely to lead to a sale, allowing you to refine your targeting and increase the proportion of high-quality leads.

Final Sip

Generating a large number of leads might seem like the ultimate goal, but it’s not enough. 

The real measure of success lies in the quality of those leads and their likelihood to turn into paying customers. 

As we’ve explored, focusing only on the cost per lead (CPL) can be misleading if those leads aren’t moving through your funnel and becoming customers.

By leveraging CRM data, you gain a deeper understanding of the quality of your leads and can refine your ad strategies to target those who are most likely to buy. 

This shift in focus, from just generating more leads to generating the right leads, is crucial for long-term success. 

Think of it like running a lemonade stand. You could have lots of people looking at your stand, but if they don’t actually buy any lemonade, it doesn’t help your business. 

It’s better to have a smaller number of customers who are really thirsty and ready to buy than a crowd of people who are just browsing. Quality over quantity, always.

By focusing on high-quality leads, you’re setting your business up for sustainable growth, just like a sniper carefully aims at the right target rather than firing off shots randomly.

As you continue with your PPC campaigns, remember that the ultimate goal is not just to drive more leads but to drive the right leads—those who are most likely to become loyal customers. 

This sniper-like focus on precision, efficiency, and measurable results is at the heart of the growth marketing model I advocate, ensuring that every action you take leads to lasting success.

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