Cost Per Lead Is A Trap (Here’s The Real Numbers)

Prioritize revenue-driven metrics over cost-per-lead: Focus on the number of sales and total dollar amount generated from each marketing channel to assess true ROI, aiming for a minimum 5x return.

Implement robust attribution tracking: Use individualized phone numbers for each marketing campaign (mailers, digital ads, etc.) to accurately determine which efforts are generating leads and revenue.

Separate revenue by new vs. existing customers: Track how much of your daily revenue comes from new customers (marketed) versus recurring customers to understand the impact of your acquisition efforts.

Develop a comprehensive marketing scorecard: Track key metrics like number of calls, appointments booked, call booking rate, and revenue by channel, even if starting with basic data points.

Understand blended vs. channel ROI: While individual channel ROI is important, also calculate your total blended marketing ROI across the entire business to account for all marketing-related costs.

Be cautious with CAC to LTV: Do not over-rely on Customer Acquisition Cost to Lifetime Value metrics in home service, as customer churn can be unpredictable and re-acquisition is common; prioritize near-term payback on spend.