Define what a qualified lead is
Before measuring anything, write down what counts. For most local service businesses a lead is qualified if it meets all of:
- It is a real person with a real need, not a supplier or a wrong number
- The work is something you actually do
- The property is in your service area
- The timing is within a period you can serve
- The budget is plausibly in range
Anything failing one of those is not a lead, and counting it distorts every number downstream.
Track the whole path, not the top
The useful measurement chain is:
- Enquiries received
- Qualified enquiries
- Quotes issued
- Jobs won
- Revenue
- Margin
Record the source at step one and carry it all the way through. Almost everyone measures step one by source and step four in total, which makes it impossible to see which sources produce customers.
The numbers that actually decide spending
From that chain:
Qualification rate — qualified out of total, by source. A source producing plenty of enquiries that are mostly out of area or out of scope is expensive even when the cost per lead looks low.
Close rate — jobs won out of qualified, by source.
Cost per acquired customer — spend divided by customers, by source. This is the number that matters.
Average job value — by source. Some channels reliably produce smaller jobs.
Repeat rate — by source. A channel producing customers who come back is worth more per customer than the acquisition cost suggests.
That last one is routinely ignored and it changes conclusions. A source with a higher acquisition cost but double the repeat rate is the better source.
Set up the tracking practically
You do not need complicated software:
- A distinct tracking number per major channel
- A required source field on your enquiry form, and one question on every call: "how did you find us?"
- One column in your job record for source, filled in every time
- A monthly half-hour to total it up
The discipline is asking every caller and recording the answer. That single habit produces most of the value.
Judge sources over a long enough window
A month is not enough for a business with a long consideration cycle. Some enquiries in The Woodlands market — larger home projects in particular — take months from first contact to a signed job, and a source judged at four weeks looks worse than it is.
Use a rolling three or six month view for anything with a long cycle, and be consistent about it.
Then act on what it says
The point of measurement is reallocation. When you can see that one channel costs three times as much per acquired customer as another, the decision makes itself.
Be willing to cut a source that produces a lot of leads and few customers. Lead volume feels like progress and it is the easiest number to be fooled by.
Frequently asked questions
What counts as a qualified lead?
A real person with a real need, for work you do, in your service area, within a timeframe you can serve, at a plausible budget. Anything failing one of those is not a lead and counting it distorts everything downstream.
What should be tracked?
The whole chain by source — enquiries, qualified enquiries, quotes issued, jobs won, revenue and margin. Most businesses track the first by source and the fourth only in total, which hides which sources produce customers.
Which number decides spending?
Cost per acquired customer by source, alongside qualification rate, close rate, average job value and repeat rate. A source with higher acquisition cost but double the repeat rate is the better source.
What tracking setup is needed?
A distinct tracking number per channel, a source field on the form, asking every caller how they found you, one source column in the job record, and half an hour a month to total it. The habit of asking produces most of the value.
How long should I judge a source over?
A rolling three to six months for anything with a long consideration cycle. Larger home projects can take months from first contact to a signed job, and a source judged at four weeks looks worse than it is.