Understanding the True Cost of Each Lead
Most glazing companies know roughly what they spend on marketing. Far fewer can tell you the exact return on each pound invested, broken down by lead source. Without this data, you're guessing where to put your budget.
The ROI Formula for Glazing Lead Generation
ROI = (Revenue from Source - Cost of Source) / Cost of Source × 100
Sounds simple, but getting the numbers right requires tracking the full journey from lead to completed installation.
Worked Example: Promoter Team
| Metric | Value |
|---|---|
| Monthly promoter costs (wages + expenses) | £6,000 |
| Leads generated | 150 |
| Appointments booked | 100 |
| Sales closed | 25 |
| Average order value | £4,500 |
| Total revenue | £112,500 |
| ROI | 1,775% |
Cost per lead: £40. Cost per sale: £240. For every £1 spent on promoters, £18.75 comes back in revenue. That's before you factor in profit margins, but it illustrates why promoter teams remain popular.
Worked Example: Google Ads
| Metric | Value |
|---|---|
| Monthly ad spend | £3,000 |
| Leads generated | 60 |
| Appointments booked | 35 |
| Sales closed | 8 |
| Average order value | £5,200 |
| Total revenue | £41,600 |
| ROI | 1,287% |
Cost per lead: £50. Cost per sale: £375. Lower volume than promoters but higher average order value (web customers tend to research more and buy bigger).
What Most Companies Get Wrong
1. Not Tracking Source All the Way to Sale
Knowing how many leads each source generates is only half the story. You need to track which sources produce leads that actually convert to sales.
2. Ignoring Indirect Costs
The cost of a promoter team isn't just their wages. Factor in vehicles, fuel, management time, and the sales team time spent on lower-quality leads.
3. Not Accounting for Cancellations
A sale that cancels is worse than no sale — you've invested time, survey costs, and potentially material orders. Track cancellation rates by lead source.
4. Comparing Volume Instead of Value
100 leads from source A vs 30 leads from source B seems like A wins. But if source B converts at 35% with an average order value of £6,000, while source A converts at 10% with an AOV of £3,500, source B generates more revenue.
Using CRM Data to Optimise Spend
Your CRM should automatically track lead source through to completed sale, giving you real-time ROI data. Review it monthly and adjust your budget:
- Double down on what works — if promoters in area X generate a 20:1 ROI, put more promoters there
- Test and measure new sources — try a new channel with a small budget and track results for 3 months
- Cut what doesn't work — if bought data lists convert at 2%, that money is better spent elsewhere
- Monitor trends — a source that worked last year might be declining