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What is Target CPL?
The target Cost Per Lead (CPL) is THE most important thing you should know before launching an advertising campaign. Once properly calculated, your advertising campaign should be tuned to achieve the target CPL and ensure that your campaigns meet their objective.

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Customer lifetime value ($)

Lead-to-customer conversion rate (%)

Desired ROI (%)

Your Target CPL is

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Target CPL Calculator

Calculate your target Cost-Per-Lead
to optimize your PPC/SEM campaigns

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Get a great planning insight for your 
PPC campaigns

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How does the Target CPL Calculator work?
The Target CPL Calculator endorses you to calculate, or at least “guesstimate”, what your Average Customer Lifetime Value (ACLV), Lead-to-Sale Conversion Rate (LSCR) and desired Return on Investment (ROI) are. Once you have these key metrics figured out, the Target CPL Calculator will calculate exactly how much your Cost Per Lead (CPL) should be to provide you with the desired ROI on your advertising campaign.

How do I calculate Customer Lifetime Value?
Calculating Customer Lifetime Value (CLV) can be a bit tricky. If your business gets recurring revenues from customers, a good practice would be to start by multiplying the average lifespan in months by the average net income per month. If your business is new and many of your customers have yet to complete their “lifetime”, it’s best to stick to your industry’s standards.

How do I calculate Conversion Rate?
To measure your Lead-to-Sale Conversion Rate (LSCR), simply divide the number of paying users over a certain period of time by the number of leads you generate on your website/landing page during that same period.

How should I decide on ROI?
In general, any positive return on investment is good. However, there is a trade-off between ROI and volume - the higher the ROI you desire, the lower volume you should expect. One needs to find the balance between the two to maximize the profits for their business (as profit is the product of the average ROI for each customer and the number of customers). The “right” ROI varies not only from industry to industry, but also from business to business in the same industry. If you don’t have enough data, a good baseline would be 20% if you want to play it safe or 10% if it’s volume that you’re after. Anywhere between the two would also make a good starting point.

About Jellop
Jellop, the company behind the CPL calculator, is a one-stop-shop online promotion company dedicated to helping businesses boost their online revenues and profits. At Jellop we also like to develop web tools such as this one. Sign up to get early access to our next tool “The Bidder” - automatic optimization of Google AdWords campaigns.

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