The ROI Tracking Problem
You're spending money on marketing, but you don't know what's working.
"Is it the Google Ads? The Facebook posts? The SEO? The billboard?"
If you can't answer this, you're wasting money.
Why Most Businesses Don't Track ROI
- It seems complicated (it's not)
- They don't know where to start (we'll show you)
- They're afraid of the answer (ignorance is expensive)
The Simple ROI Formula
ROI = (Revenue - Cost) / Cost × 100
Example:
- Spent: $2,000 on Google Ads
- Generated: $10,000 in revenue
- ROI = ($10,000 - $2,000) / $2,000 × 100 = 400%
What to Track
1. Cost Per Lead (CPL)
Formula: Total Ad Spend / Number of Leads
Goal:
- Service businesses: $10-$30 per lead
- Professional services: $50-$150 per lead
2. Cost Per Acquisition (CPA)
Formula: Total Marketing Cost / Number of Customers
Goal: 20-30% of customer lifetime value
Example: If customer LTV is $2,000, CPA should be $400-$600.
3. Conversion Rate
Formula: (Leads / Visitors) × 100
Goal:
- Website: 2-5% (good), 5-10% (great)
- Landing pages: 10-20% (good), 20%+ (great)
4. Customer Lifetime Value (LTV)
Formula: Average Sale × Repeat Purchase Rate × Average Customer Lifespan
Example:
- Average job: $500
- Repeat rate: 40% (2.5 jobs per customer)
- Lifespan: 3 years
- LTV = $500 × 2.5 × 3 = $3,750
How to Set Up Tracking
Step 1: Call Tracking
Tools: CallRail, CallTrackingMetrics, GoHighLevel
What it does: Tracks which keywords/ads generate phone calls
Cost: $30-$100/month
Step 2: Form Tracking
Tools: Google Analytics, Facebook Pixel
What it does: Tracks which sources generate form submissions
Cost: Free
Step 3: Revenue Attribution
Tools: CRM integration, manual tracking
What it does: Connects leads to actual sales
Cost: Free (with CRM) or $50-$200/month (dedicated tool)
The Tracking Setup Checklist
- [ ] Google Analytics installed
- [ ] Facebook Pixel installed (if running FB ads)
- [ ] Call tracking set up
- [ ] UTM parameters on all links
- [ ] CRM tracks lead source
- [ ] Monthly ROI reports scheduled
Common Tracking Mistakes
- Not tracking phone calls (60% of leads call, not fill forms)
- Not using UTM parameters (can't tell which ads work)
- Not connecting leads to sales (don't know true ROI)
- Tracking vanity metrics (clicks, impressions don't matter)
Real Example: Before & After
Dental Practice:
Before (No tracking):
- Spending $3,000/month on marketing
- "Getting leads" but don't know from where
- Can't optimize
- Wasting 40% of budget
After (Proper tracking):
- Know Google Ads: $1,200/month, 15 patients, $80 CPA
- Know Facebook Ads: $800/month, 8 patients, $100 CPA
- Know SEO: $1,000/month, 20 patients, $50 CPA
- Cut Facebook Ads, doubled SEO budget
- Result: Same spend, 25% more patients
The Monthly Review Process
Every month, review:
- Cost per lead by channel
- Conversion rate by channel
- Customer acquisition cost
- ROI by channel
- What to cut, what to scale
Time required: 30 minutes Value: Saves thousands per month
Ready to Start Tracking?
Get a free marketing audit and we'll show you exactly how to set up tracking for your business.