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What is a good cost per lead in India?

Quick answer

A good cost per lead is one that leaves you profit after you count how many leads become customers and what each customer is worth. Work it out as customer value multiplied by your lead-to-customer rate, then keep a margin. Industry averages vary too much by city, sector and channel to be a reliable target.

What is a good cost per lead in India? — answered by UpSocially

Work out your own number

  1. Estimate the profit from one customer over their lifetime.
  2. Find how many leads become customers, for example 1 in 10.
  3. Multiply: profit per customer × close rate = most you can pay per lead.
  4. Aim below that to leave a margin.

An example

If a customer brings ₹50,000 profit and 1 in 10 leads buys, you break even at ₹5,000 per lead. A target of ₹2,500–3,500 leaves room for profit.

Why averages mislead

  • A dental implant lead and a restaurant lead are worth very different amounts
  • Search leads and social leads convert differently
  • Metro cities cost more than smaller ones

Track cost per customer by channel each month and move budget to what pays back.

Key takeaways

  1. Base it on customer value and close rate
  2. Averages vary too much to rely on
  3. Track cost per customer, not just per lead
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