Eric Siu shows how to improve lead quality by adding qualifying questions to your ads. He cut customer acquisition costs from $11 to $4 by using Facebook and Instagram lead ads, and explains why knowing your customer lifetime value matters when you're paying $20 per lead.
If you want to increase the quality of your leads, what can you do? You can probably add more qualifying questions. Sure, you might get less form fields, but they're going to be higher quality. You can now do that within Facebook and Instagram lead ads. So here's what we started to do. We started doing this for the email list too, because when we were initially struggling with $11 CPAs, we're like, dude, that's not going to work. I was like, just go try lead ads, right? Lead ads immediately dropped the CPA to like $4 or something like that, and it's just going to get better over time. We're like, okay, that's going to scale well. And then even with our regular conversions that we've dropped to $5, but we're going to continue to push lead ads. And then for For fun, what I did last weekend, I was like, oh, I want to kind of just try this for like retargeting for our own stuff. For bringing in leads for an agency, it's like $20 per lead or something like that. Now, are the leads quality? No, I would say for every 10 or so, maybe one's qualified. So 10%, right? So still though, you might be paying $200 for a lead. If you have a high lifetime value customer, you should be doing it.
