One of the most common frustrations business owners express to me is this: “I’m spending money on marketing but I don’t know if it’s working.” This is a solvable problem – but it requires setting up proper tracking from the start.
The Two Numbers You Must Know
Before you can judge whether your marketing is working, you need two figures: your cost per lead (how much you’re spending for each enquiry) and your customer lifetime value (how much a typical customer is worth to your business over the entire relationship).
If your Google Ads campaign generates 20 leads per month at a total ad spend of £400, your cost per lead is £20. If 30% of those leads become customers (6 per month), your cost per customer acquisition is £66.67. If a typical customer spends £800 with you, your ROI is clearly positive. The marketing is working.
Conversion Tracking
None of this analysis is possible without conversion tracking. You need to know which ads, keywords, and channels are generating actual enquiries – not just clicks. Google Ads conversion tracking and Google Analytics allow you to see exactly which touchpoints led to a form submission or phone call. Setting this up correctly is non-negotiable.
The Full Funnel
Marketing performance isn’t just about leads – it’s about what happens after. A campaign might generate 50 leads per month, but if your sales process converts only 5% of them, the problem might not be the marketing – it might be the follow-up. Tracking should extend all the way through to actual revenue, not just enquiries.
Setting Benchmarks
In most industries, a well-managed Google Ads campaign targeting local service searches should deliver a conversion rate of between 5% and 15% (enquiries as a percentage of clicks). If yours is significantly below this, the issue is usually the landing page, the offer, or the targeting. Find out about my full marketing services or book a free strategy conversation.
