Your plumbing business should track six essential KPIs for Google Ads: cost-per-lead, lead-to-job conversion rate, cost-per-booked-job, revenue generated, return on ad spend (ROAS), and customer lifetime value. These metrics connect your advertising investment directly to business outcomes rather than just marketing activity, allowing you to make data-driven decisions about budget allocation, campaign optimization, and scaling strategies.
Cost-Per-Lead: Your Primary Efficiency Metric
Cost-per-lead (CPL) measures how much you’re paying to generate each inquiry from phone calls, form submissions, or chat messages. Calculate it by dividing total ad spend by total leads generated. For plumbing companies, target CPL typically ranges from $75-$175 in mature, optimized campaigns, though acceptable ranges vary by market competitiveness and service type. Cost-per-lead may even be lower in some markets.
Track CPL by:
- Campaign type: Emergency services usually have higher CPL ($125-200) but also higher urgency and close rates, while maintenance services run lower ($75-125)
- Traffic source: Google Search Ads vs. Local Service Ads vs. Display campaigns each produce different CPL
- Time period: Monitor weekly trends to catch performance degradation early before it costs significant money
Why it matters: Declining CPL over your first 4-6 months indicates successful optimization. Increasing CPL signals problems—rising competition, declining ad relevance, or targeting drift—that need immediate attention. A plumbing company that starts at $250 CPL in month one should target $150-175 by month three and $100-125 by month six.
Red flags: CPL exceeding 20% of your average job value, CPL increasing month-over-month after the first 60 days, or wild CPL fluctuations (doubling or halving week-to-week) suggesting campaign instability.
How crftsmn helps: Our Google Search Advertising service tracks CPL by service category, source, and time period with automated alerts when costs drift outside acceptable ranges, enabling rapid optimization before problems compound.
Lead-to-Job Conversion Rate: The Sales Effectiveness Indicator
Lead-to-job conversion rate measures what percentage of leads become booked work. Calculate it by dividing booked jobs by total leads received. Industry benchmarks for plumbing companies with solid sales processes:
- Emergency services: 35-45% conversion rate
- Installation services: 30-40% conversion rate
- Maintenance/routine services: 25-35% conversion rate
- Overall blended rate: 30-40%
This metric reveals whether problems are with lead quality or sales execution. Low conversion rates (under 25%) combined with low CPL suggest you’re attracting price shoppers or unqualified leads through overly broad targeting. Low conversion rates with acceptable CPL indicate sales process issues—slow response times, poor phone handling, or inadequate follow-up on non-urgent leads.
Track conversion rate by:
- Service category (emergency vs. installation vs. maintenance)
- Lead source (Search Ads, LSAs, organic)
- Day of week and time of day (weekend leads often convert differently than weekday)
- Individual technician or salesperson handling the lead
Why it matters: A 10-point improvement in conversion rate from 30% to 40% has the same business impact as reducing your CPL by 25%. Most plumbing companies have more opportunity to improve conversion rate through sales process refinement than to dramatically reduce CPL through campaign optimization.
Red flags: Conversion rates below 25% overall, significant variance between similar service categories, or declining conversion rates over time despite consistent lead quality.
How crftsmn helps: We provide conversion rate analysis by traffic source and service type, helping you identify whether optimization should focus on campaign targeting, landing page improvements, or sales process enhancements to maximize booked jobs from your advertising investment.
Cost-Per-Booked-Job: The True Acquisition Cost
Cost-per-booked-job (CPBJ) is the ultimate efficiency metric because it accounts for both lead generation cost and conversion effectiveness. Calculate it by dividing total ad spend by booked jobs, or alternatively, divide CPL by lead-to-job conversion rate. Target CPBJ ranges for plumbing:
- Emergency services: $200-350 per booked job
- Installation services: $250-450 per booked job
- Maintenance services: $175-300 per booked job
CPBJ should represent 15-25% of your average job value to maintain profitability after accounting for direct costs (labor, materials, overhead). If your average water heater replacement job is $3,200, your CPBJ should be $480-800. Higher CPBJ can work for high-margin services or when factoring customer lifetime value. Long term campaigns that are optimized can be healthier with even lower CPBJ.
Compare CPBJ across:
- Different campaigns and ad groups
- Keyword categories (branded vs. non-branded)
- Geographic service areas
- Day-parting periods (business hours vs. after hours)
Why it matters: Two campaigns might have identical CPL, but if one converts at 40% and the other at 25%, the first campaign’s CPBJ is 38% lower—dramatically more profitable. CPBJ forces you to optimize the complete funnel, not just lead generation.
Red flags: CPBJ exceeding 30% of average job value, increasing CPBJ despite stable CPL (indicating conversion problems), or inability to track CPBJ at all because you’re not connecting leads to booked jobs.
How crftsmn helps: Our Google Search Advertising service implements conversion tracking that follows leads through to booked jobs, providing accurate CPBJ reporting by campaign and service category so you can allocate budget to your most cost-effective customer acquisition channels.
Revenue Generated: The Growth Metric
Revenue generated tracks total sales directly attributable to Google Ads traffic. This requires tracking which booked jobs originated from paid search and summing their value. For example, if your campaigns generated 35 booked jobs last month with an average value of $1,450, your revenue generated is $50,750.
Break down revenue by:
- Service category to identify which campaigns drive highest-value work
- New customers vs. repeat customers from remarketing
- Month-over-month trends to assess growth trajectory
- Seasonal patterns to optimize budget allocation throughout the year
Why it matters: Revenue generated connects advertising directly to business growth. A campaign with high CPL and CPBJ might still be profitable if it’s generating high-value installation work. Conversely, low-cost leads for small repair jobs might look efficient but fail to drive meaningful revenue.
Track revenue alongside market share metrics—if your Google Ads revenue is growing but total company revenue is flat, you’re cannibalizing other lead sources rather than capturing new market share.
Red flags: Revenue generated declining while lead volume increases (average job value dropping), revenue heavily concentrated in one service category (lack of diversification), or inability to attribute revenue to specific campaigns.
How crftsmn helps: We with revenue tracking in Google Ads by integrating your CRM or business management software, providing clear visibility into which campaigns and keywords drive actual revenue growth, not just lead activity.
Return on Ad Spend (ROAS): The Profitability Indicator
ROAS measures revenue generated per dollar spent on advertising. Calculate it by dividing revenue generated by total ad spend. A company spending $8,000 that generates $32,000 in revenue has 4:1 ROAS. Target benchmarks for plumbing:
- Months 1-3: 1.5:1 to 2.5:1 (learning phase)
- Months 4-6: 2.5:1 to 4:1 (optimization phase)
- Months 7+: 3:1 to 5:1 (mature campaigns)
ROAS alone doesn’t tell the complete story because it doesn’t account for direct costs. A 3:1 ROAS is profitable if your gross margins are 40%+ but unprofitable if margins are only 25%. Use ROAS alongside gross profit analysis to assess true campaign profitability.
Compare ROAS by:
- Campaign and ad group to identify winners and losers
- Service type (emergency, installation, maintenance)
- Customer type (residential vs. commercial)
- Attribution window (30-day vs. 90-day for longer sales cycles)
Why it matters: ROAS provides clear language for discussing campaign performance with financial stakeholders. Saying “we achieved 4:1 ROAS” communicates value more effectively than “we had 15% conversion rate and $125 CPL.” ROAS is also the metric that justifies budget increases—proven 4:1 ROAS makes the case for doubling your spend.
Red flags: ROAS below 2:1 after six months, declining ROAS despite increasing spend (indicating diminishing returns), or ROAS calculations that don’t account for partial conversions or customer lifetime value.
How crftsmn helps: Our Google Search Advertising service provides ROAS reporting, helping you understand not just revenue return.
Customer Lifetime Value (LTV): The Long-Term Perspective
Customer lifetime value measures the total revenue a customer generates over their relationship with your company, not just the initial job. For plumbing businesses, average customer LTV typically ranges from $2,500-6,000 over 5-7 years, depending on service mix and customer retention.
Calculate LTV by:
- Tracking repeat service frequency (customers call 2-4 times over 5 years on average)
- Monitoring average transaction value per visit
- Measuring customer retention rates
- Multiplying frequency × value × retention period
Why it matters for Google Ads KPIs: A campaign with $300 CPBJ generating $800 initial jobs looks marginally profitable at first glance. But if those customers have $4,000 LTV, the true customer acquisition cost is only 7.5% of lifetime value—extremely profitable. This perspective justifies higher acquisition costs for customer relationships versus one-time transactions.
Track LTV by:
- Initial acquisition source (Google Ads vs. other channels)
- Service type of first job (do emergency customers become installation customers later?)
- Geographic area (suburban customers often have higher LTV than urban)
- Customer demographic where available
Red flags: Inability to track LTV at all, acquisition strategies focused purely on initial transaction value, or discovering that Google Ads customers have significantly lower LTV than customers from other sources.
How crftsmn helps: We help integrate Google Ads conversion tracking with your CRM systems to enable LTV analysis by acquisition source, demonstrating the complete value of paid search customer acquisition beyond just initial job revenue.
Secondary KPIs Worth Monitoring
Beyond the six essential metrics, track these supporting indicators:
Click-through rate (CTR): Measures ad relevance and appeal—2-8% CTR is typical for plumbing search ads. Low CTR suggests weak ad copy or poor targeting.
Quality score: Google’s 1-10 rating of keyword relevance, landing page quality, and expected CTR. Scores of 7+ reduce costs and improve ad positions.
Impression share: Percentage of available impressions your ads captured. Under 60% suggests budget constraints or low ad rank limiting visibility.
How crftsmn helps: Our Google Search Advertising service monitors all secondary metrics while keeping primary focus on business-outcome KPIs that directly impact profitability and growth, ensuring optimization efforts prioritize what matters most to your bottom line.
Conclusion & Next Steps
Effective Google Ads management for plumbing companies requires tracking cost-per-lead, lead-to-job conversion rate, cost-per-booked-job, revenue generated, ROAS, and customer lifetime value. These six KPIs provide complete visibility into campaign efficiency, sales effectiveness, and business profitability, enabling data-driven decisions about budget allocation and optimization priorities. Contact crftsmn to implement comprehensive conversion tracking and KPI reporting for your Google Search Advertising campaigns, ensuring you have the insights needed to scale profitably.
Frequently Asked Questions
Q: How do I track which leads came from Google Ads?
A: Implement call tracking with unique phone numbers for Google Ads campaigns, use form submission tracking with hidden source fields, and configure conversion tracking in Google Ads. Most CRM systems can capture lead source automatically with proper integration. crftsmn’s Google Search Advertising service includes complete tracking setup as standard.
Q: Should I track KPIs daily, weekly, or monthly?
A: Monitor cost-per-lead and lead volume daily or weekly to catch problems early. Analyze lead-to-job conversion, CPBJ, revenue, and ROAS monthly since these require more data for meaningful trends. Review LTV quarterly or annually. Avoid over-reacting to single-day or single-week fluctuations in campaigns that need time to show patterns.
Q: What if my conversion tracking isn’t perfect?
A: Some lead source ambiguity is inevitable—customers may see your ad, visit later via organic search, or call after seeing your truck. Start with tracking what’s clearly attributable and improve incrementally. Imperfect tracking showing clear trends is more valuable than perfect tracking that’s so complex you don’t use it. Work toward 80%+ attribution accuracy as a realistic goal.
Q: How do plumbing KPIs differ from other industries?
A: Plumbing has longer sales cycles for installations, higher variability in job values ($200-$15,000 range), and significant seasonal fluctuations compared to many industries. Emergency services create unique dynamics where response time dramatically impacts conversion. These factors mean plumbing KPIs need more service-category segmentation than many businesses.
Q: Should I share these KPIs with my technicians?
A: Yes, especially lead-to-job conversion rate by service type and technician. Transparency about which types of leads convert best and which team members excel at closing helps improve overall performance. Many plumbing companies implement conversion-based bonuses tied to these metrics, aligning team incentives with Google Ads success.