Marketing agencies love to show you impressions, reach, and engagement. These numbers can look impressive while your bank account stays the same.
Here are the metrics that actually matter for service businesses:
Cost per lead (CPL)
What it is: How much you spend in advertising to generate one enquiry.
Why it matters: This tells you how efficiently your ads are generating interest. A CPL that's too high means your targeting or creative needs work.
Benchmark: Varies by industry, but most service businesses should aim for €10-50 per lead.
Cost per acquisition (CPA)
What it is: How much you spend to acquire one paying customer.
Why it matters: This is the real number. Leads don't pay bills, customers do. If you generate 100 leads but only close 5, your CPA is 20x your CPL.
Calculation: Total ad spend / Number of new customers
Lead to customer conversion rate
What it is: What percentage of your leads become paying customers.
Why it matters: A low conversion rate usually means your follow-up system is broken, not your advertising.
Benchmark: 20-40% is typical for service businesses with good follow-up.
Customer lifetime value (LTV)
What it is: How much revenue a customer generates over their entire relationship with you.
Why it matters: A customer who uses you once for €200 is different from a customer who uses you annually for €200 and refers two friends.
Return on ad spend (ROAS)
What it is: Revenue generated divided by ad spend.
Why it matters: This is the ultimate measure of whether your marketing is profitable.
Calculation: Revenue from marketing / Ad spend
A 3x ROAS means you make €3 for every €1 spent. That's generally the minimum for a sustainable campaign.
What we track for clients
We track all of these for our clients, connected from ad click to closed job. When you can see the full picture, you can make decisions based on data rather than guessing.
The agencies that only show you vanity metrics are usually hiding something. Ask to see the numbers that matter.