Most Brisbane business owners we chat to know exactly how many leads they got last month. But when we ask, "How many of those specific leads actually paid you money?" things usually get a bit quiet.
Tracking your lead-to-customer conversion rate is the only way to stop 'guessing' if your marketing is working and start 'knowing.' It’s the difference between spending money on ads that just ring the phone and investing in ads that actually grow your bank balance.
Why this matters for your bottom line
If you're spending $1,000 on Google Ads to get 50 leads, your cost-per-lead is $20. If only 1 of those leads becomes a customer, your acquisition cost is $1,000. If 5 become customers, it's $200. Without tracking this, you might accidentally turn off your best-performing campaigns just because the leads 'felt' expensive.---
Prerequisites: What you’ll need
Before we dive in, make sure you have the following ready:- A Lead Capture System: A website form (like WPForms or Elementor), a phone tracking tool, or even just a very organised spreadsheet.
- A Sales Record: An accounting software (Xero or MYOB are the gold standards here in Aus) or a CRM (like HubSpot or Pipedrive).
- UTM Parameters: A basic understanding of how to tag your links (don't worry, we'll touch on this).
- A 'Source' Field: A way to record where every single lead came from.
---
Step 1: Define what a 'Lead' actually is
This sounds simple, but it’s where most people get stuck. Is a lead someone who downloaded a free PDF? Or someone who requested a quote for a full roof restoration?For the purpose of this guide, we are tracking Sales Qualified Leads (SQLs). These are people who have expressed a genuine interest in buying your service.
Pro Tip: If you’re a local service business (like a plumber in Chermside or an accountant in the CBD), a lead is usually a phone call or a contact form submission. Keep it simple.Step 2: Set up Hidden Fields on your website forms
This is a bit of a 'secret' trick that marketing agencies use. When someone fills out a form on your site, you want to know which ad or search term brought them there without asking them "How did you hear about us?" (because, let's be honest, everyone just says "Google").- What you should see: In your form builder (like Gravity Forms or WPForms), look for an option to add a "Hidden Field."
- What to do: Name these fields
utm_source,utm_medium, andutm_campaign. - The Magic: When you use UTM links in your Facebook or Google Ads, the form will automatically suck that data in and send it to you with the lead’s name and email.
Step 3: Create a Centralised Lead Tracker
You need one source of truth. If your leads are scattered across email notifications, SMS, and sticky notes, you’ll never calculate an accurate conversion rate.- The Beginner Way: A Google Sheet. Create columns for: Date, Name, Source (e.g., Google Ads), Status (New, Quoted, Won, Lost), and Value.
- The Professional Way: Use a CRM like HubSpot (they have a great free version).
Step 4: The 'Source of Truth' Audit
Every Monday morning (grab a coffee from your favourite local spot first), sit down and look at your new leads from the previous week.- Match the leads in your inbox to the leads in your tracker.
- Ensure every lead has a 'Source' assigned. If it's a phone call, ask your team to check the call tracking software or simply ask the caller, "Just so I can thank the right person, did you find us on Google or Facebook?"
Step 5: Link Leads to your Accounting Software
This is the most important step for calculating the actual conversion rate. When a lead becomes a customer, you need to mark that in your tracker.- If using a CRM: Move the 'Deal' to 'Closed/Won'.
- If using a Spreadsheet: Change the status to 'Won' and enter the invoice amount from Xero/MYOB.
Step 6: Calculate your Conversion Rate
Now for the maths. Don't worry, it's straightforward. You want to calculate this monthly to see trends. The Formula:(Total Customers Won / Total Leads Received) x 100 = Conversion Rate %
Example:
- You got 40 leads in October.
- 8 of those became paying customers.
- (8 ÷ 40) x 100 = 20% Conversion Rate.
Step 7: Segment by Lead Source
Once you have the total rate, break it down by source. This is where the real 'aha!' moments happen.You might find:
- Google Ads: 10% conversion rate.
- SEO/Organic: 25% conversion rate.
- Facebook Ads: 2% conversion rate.
---
Common Mistakes to Avoid
- Ignoring the 'Lurk' Time: Some customers take 3 months to decide. If you only look at October's leads and October's sales, your data will be wrong. Always track the sale back to the original date the lead came in.
- Double Counting: If a husband and wife both enquire for the same renovation, that’s one lead, not two. Clean your data!
- The "Misc" Trap: Avoid labelling sources as "Other" or "Unknown." If you have too many of these, your data is useless. Be disciplined about finding the source.
Troubleshooting
- "My conversion rate looks incredibly low (under 1%)": You might be counting 'junk' leads (spam bots). Use ReCaptcha on your forms to filter these out so they don't skew your data.
- "I can't tell where my phone calls come from": Look into a tool like CallRail or WildJar. They provide unique numbers for your ads so you can track calls back to specific campaigns. It's a game-changer for service businesses.
- "The data in Google Analytics doesn't match my spreadsheet": This is normal. Privacy settings and ad-blockers mean Google can't see everything. Your spreadsheet/CRM is your "Source of Truth," not your Analytics dashboard.
---
Next Steps
Now that you've got your tracking in place, it's time to use that data to make decisions.- Identify your worst-performing source: Is it the lead quality, or is your sales team not following up fast enough?
- Double down on the winners: If your SEO leads convert at 40%, it’s time to invest more in your content and local Brisbane SEO.
- Review your follow-up process: Often, a low conversion rate isn't a marketing problem—it's a sales problem. Are you calling leads back within 15 minutes, or 15 hours?
Setting this up is admittedly a bit of a weekend project, but once it's running, you'll have more clarity on your business than 90% of your competitors.
If you get stuck with the technical side of hidden fields or CRM integration, we're here to help. You can reach out to the team at https://lmgroup.au/contact and we can walk you through the setup for your specific business.