Cost Per Click
Cost Per Call is when you pay for a lead in the form of a phone call. This has become more relevant with the onset of Google Local Services. Cost Per Call could also refer to other lead sources such as Home Advisors, Angies List, as well as others, if those come in the form of an actual phone call. When running Google Ads, not through Goole Local Services, the goal of course is to generate phone calls but because you're paying for clicks, then this is typically referred to as Cost Per Click.
One of the limitations to Cost Per Call, similar to Cost Per Lead, is that you may not be able to reduce the overall cost. Once you're locked into a price you may be buying regardless of volume. This isn't true in all cases but anytime you market you try and find those opportunities that will allow you to reduce cost with volume. Thius becoming scalable.
Cost Per Click CPC is often referred to as Pay Per Click advertising or PPC. The idea is that you pay anytime a prospective buyer clicks on one of your ads.
Examples of Cost Per Click or PPC advertising include, Google Ads, Facebook Ads & Bing/Yahoo Ads.
One of the benefits of running Cost Per Click advertising that is unlike Cost Per Lead or Cost Per Call is that with time you can lower the cost, thus eventually driving down your cost per lead/call.
Factors that contribute to lowering the overall cost include increasing budgets, competition in your market or for the keywords you wish to advertise on.
Cost Per Lead generally refers to leads that companies pay for. These are most notably bought through other sites such as Home Advisor, Angie's List, Thumbtack, as well as others. These types of leads can be a meaningful boost to your business. There is lower risk in buying them because you know basically what you are getting - a lead.
The biggest with buying leads is that you may not get as many as you would like and/or the quality varies. I have found that businesses that are in their infancy typically love this type of lead source. In many ways these are low risk. Groups that move on to control their lead flow, realize that the power in generating scalable flow of leads that often teams are better in their quality.
Cost Per Lead
Cost Per Call
Cost per Acquisiton
Cost Per Acquisition or CPA, refers to the actual cost to acquire one new customer. Too often businesses get caught up in the wrong metrics when evaluating their marketing strategy. Although you may utilize Cost Per Click, Cost Per Lead or Cost Per Call to generate to opportunities, what ultimately matters is what it actually cost to bring on customers.
This is where tracking becomes so important.
Tracking your lead sources will help you understand where to continue to invest your marketing dollars. This is ultimately what will help you scale at a rate that is comfortable for you. You may find that you pay more for a higher quality lead but the conversion rates are also better, so the Cost Per Acquisition could be better even though the initial cost was higher. Don't get me wrong, Cost Per Click, Cost Per lead & Cost Per Call matter but not nearly as much as that final cost.