In the digital age, marketing has become increasingly data-driven, and the plumbing industry is no exception. Plumbing businesses are constantly searching for innovative ways to connect with potential customers and generate leads. One of the most effective strategies for this purpose is pay-per-call advertising. This method allows plumbing companies to pay only when a potential customer makes a call, providing a direct and cost-effective way to acquire new clients. However, to ensure the success of a pay-per-call campaign, it’s crucial to monitor and measure the right Key Performance Indicators (KPIs). In this blog post, we’ll explore the essential KPIs for a plumbing pay-per-call campaign.
Pay-Per-Call vs. Traditional Marketing KPIs
Have you ever worked with a marketing agency and had to pay for the cost of failed ads, experimenting, optimization? If so, you know how much of your money they can waste.
What distinguishes pay-per-call KPIs from traditional marketing KPIs is the shift of responsibility and risk. In traditional marketing, businesses often need to manage various metrics such as cost per click, click-through rate, and conversion optimization. The cost of failure in these areas, even when handled by a traditional market agency, comes our of the businesses profit. OUCH.
With pay-per-call, the risk and responsibility shifts to the pay-per-call agency. The business owner doesn’t need to worry about these traditional marketing metrics, as the agency shoulders the responsibility for generating calls and ensuring their quality and the cost. This dynamic minimizes the business’s financial risk, as they only pay when a potential customer contacts them.
In essence, pay-per-call allows plumbing businesses to focus on their core competencies while relying on the expertise of pay-per-call agencies to bring in potential customers. By doing so, it streamlines the marketing process and simplifies KPI tracking, allowing businesses to stay focused on delivering high-quality plumbing services.
The KPI’s You Need To Look At When With Pay-Per-Call.
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1. Call Volume
The most straightforward and essential KPI for any pay-per-call campaign is the call volume. This metric tells you how many potential customers have reached out to your plumbing business through the campaign. By tracking call volume, you can quickly gauge the overall performance of your advertising efforts. As a plumbing business, you should aim for an increasing call volume over time, as it directly correlates with lead generation and potential sales opportunities.
2. Call Duration
Call duration is another critical KPI to consider. It indicates the quality of the calls generated through your pay-per-call campaign. Longer call durations typically suggest that the callers are genuinely interested in your services, asking questions, and seeking information. Short or dropped calls might signal that the campaign is attracting the wrong audience or that there are issues with your call handling process.
3. Conversion Rate
The ultimate goal of any pay-per-call campaign is to convert potential leads into paying customers. Your conversion rate KPI tells you how successful your campaign is in achieving this goal. It’s calculated by dividing the number of converted leads by the total number of calls generated. A higher conversion rate indicates that your campaign is effectively targeting the right audience and convincing them to hire your plumbing services.
4. Cost-Per-Call (CPC)
Understanding the cost associated with each call is crucial for managing your campaign’s budget. The cost-per-call (CPC) KPI is calculated by dividing the total campaign cost by the number of calls generated. Keeping a close eye on CPC helps ensure that you are not overspending on your advertising efforts and that the campaign remains cost-effective.
5. Return on Investment (ROI)
ROI is the ultimate KPI for evaluating the overall success of your pay-per-call campaign. It takes into account both the revenue generated from the campaign and the total campaign costs. A positive ROI indicates that your campaign is generating more revenue than it costs, making it a profitable marketing strategy.
6. Customer Acquisition Cost (CAC)
Customer acquisition cost is closely related to ROI but focuses specifically on the cost of acquiring a new customer through the pay-per-call campaign. To calculate CAC, divide the total campaign cost by the number of customers acquired. Lowering your CAC while maintaining a high ROI is a sign of efficient and sustainable marketing.
7. Customer Lifetime Value (CLV)
In addition to assessing the cost of acquiring customers, it’s vital to consider the long-term value each customer brings to your business. Customer Lifetime Value (CLV) measures the total revenue a customer is expected to generate throughout their relationship with your plumbing company.
As you know, if you do a great job for a customer they’re likely to call you back directly the next time they need service. So if a caller has a $500 plumbing need initially but calls you back every 2 years for a plumbing need, they could be worth tens of thousands of dollars over the years. And then that is further exponentially increased by word of mouth!
On That Note;
a pay-per-call campaign can be a powerful tool for plumbing businesses to acquire new customers. To ensure its success, you must closely monitor and measure these key performance indicators, including customer acquisition cost. These metrics will help you optimize your campaign, manage your budget effectively, and ultimately drive growth and profitability for your plumbing business. By paying attention to these essential KPIs and making data-driven decisions, you can build a thriving plumbing company in today’s digital landscape.