Cost per lead (CPL) is an important metric to plan the promotion. But if a company receives many phone requests, it is impossible to ignore the cost of the call. This is the only way to evaluate the cost-effectiveness of investments in an advertisement of a specific product, as well as make other conclusions. Ringostat provides a new metric to do so — cost per proper call (CPPC). It became possible due to the integration with three popular advertising systems. Read below on how it works and what benefits it brings.
Cost per call is a marketing metric that describes how much investments are spent in the attraction of one call from the customer. It also helps to understand the money that a company loses while missing calls.
It counts via the formula:
NB: It is a metric that is needed to check the effectiveness of separate promotion channels. Such business operational costs like office rent or employments’ salaries are not included in it.
Why do you need to calculate the cost per call
Essentially this metric is close to the cost per lead. Nevertheless, first of all, it is intended for a business where a part of conversions is done by phone. For example, we had a client, the company that is selling audio and video equipment. Calls represented 68% of all their conversions. Counting the cost per lead by online conversions, the company could see only a small part of customers’ proper actions and sources that generated them.
That’s why marketers couldn’t make objective conclusions on the effectiveness of advertising channels. With the call tracking insertion, they saw the whole picture of marketing investments cost recovery. Thus, they decided to give PPC campaigns to outsourcing specialists, and this has borne fruit. The number of calls from customers has also increased.
Having data on the cost of the call, it is possible to do a more accurate calculation of the cost of the client that is required for strategic planning. By comparing these metrics with the revenue from sales, you can analyze ROI — one of the main measurements while doing business.
Or there is a more easy way — simply connect Ringostat end-to-end analytics that will automatically count revenue for you. No complex calculation or switches between different systems. All data are displayed in one window — you will only need to check reports and make wise decisions based on accurate information. By the way, if it is needed you can manually upload costs to Ringostat end-to-end analytics. It makes you independent from the systems that we are integrated with and allows evaluating the effectiveness of investments in SEO promotion or banner advertisement, for example.
How to calculate the cost per call
There are two ways of calculation: manual and automatic. In both cases, you need to know the cost of advertisements and the number of calls for the same period of time.
- Collect data on costs for each campaign for a specific period.
- Collect information on the number of calls for the same term.
- Divide cost on the number of calls.
Therefore you will receive the cost per call for a certain period of time. But if you want to have the same data but for another period, you will again have to get the information and make calculations. This will be tiresome for marketers in a business that has dozens of launched ad campaigns in different advertising accounts. As for each channel, this metric has to be counted separately.
Ringostat has functionality that will free you from inaccurate data and calculating the cost of a call manually. We released integrations with advertising accounts of three popular systems:
Due to integrations, you will receive actual information on spends on promotion from the perspective of ad campaigns. After the integration configuration, the data on cost are automatically transferred and calculations happen within seconds. As a result, in Ringostat account, in the “Analytics” section will appear a new column CPPC (Cost per Proper Call).
CPPC is a proprietary metric of Ringostat that shows how much the company spends on a proper call. In other words, on a call from the potential customer that lasted longer than a time set in the call tracking settings.
This metric displays in the following reports:
- calls from PPC;
- report on the efficiency of advertising campaigns;
- a detailed report on advertising efficiency (down to keyword level).
Report on the cost of the proper call by each ad channel in the Analytics section
Why is it important to evaluate proper calls exactly? Their duration clearly shows that a customer is interested and asks about product specifics — unlike spam or short junk requests. The lasting of such conversation depends on the business peculiarities. For example, a pizza order and doctor’s appointment take different time.
All integrations with advertising accounts can be configured in two clicks. It is enough to click on “Enable integration”, log in the appropriate service and choose the advertising account for information import. You will receive the data by doing so.
Pay attention that integration with Facebook Pixel is a bit different from other integrations. It is the same simple in configuration, however, you don’t receive data in Ringostat account but send them to Facebook.
What is Facebook Pixel and how the integration works
Facebook Pixel is an analytical tool that helps to measure the effectiveness of the advertising and understand the users’ behavior on your website.
However, as in the case with other web analytical systems, there is one nuance. Pixel can’t track calls as they are happening offline. Meanwhile, people often call before the purchase — it is especially important for several business niches. If a visitor enters the website but made a purchase via phone, Facebook Pixel won’t track it and will consider that there was no conversion but the user is a lead and made a proper action.
Ringostat easily fixes the gap in analytics due to the integration with Facebook Pixel. How it works:
- user opens the website;
- he chooses the product and makes a call;
- Ringostat transfers the information on this conversion to Facebook as a “Contact” standard event.
What gives integration with advertising accounts and CPPC reports
- By enabling integrations you will be able to automatically receive data on costs of different ad campaigns on Google, Facebook, and Instagram. The whole information will be united in the same report — no need to manually collect it from all systems to have an objective set of eyes on the situation.
- You can see how paid ads are converted to calls and will receive a detailed report on the cost of proper calls by each promotion channel. Based on this data, it’s possible to optimize campaigns. As well as allocate more resources to effective call sources and opt-out unprofitable campaigns.
- By connecting integration with CRM, you will be able to build end-to-end analytics, Receive detailed data on the cost recovery of ad channels and conversions of advertisements to sales. This information will be available in the “Analytics” section of the Ringostat account.
- You can measure the efficacy of advertisements and understand customers’ actions on your website due to the integration with Facebook Pixel.