5

Calculating the Costs

IN THIS CHAPTER, I’ll look at how to define the costs of obtaining leads or customer actions. I’ll look at how leads work in the overall process of selling your products to customers, as well as the effect that qualifying your marketing or sales leads can have on the cost-effectiveness of your lead-generation campaigns. I’ll also look at different ways to assess the lifetime value of your customer in terms of the number of sales you receive from a lead, and how this can affect how you calculate the ROMI for your lead-generation efforts.