Phil Risher breaks down what home-service businesses paid per new customer in 2023. Organic leads cost around $87, Google Local Service Ads $260, and Google Search ads $400. For a $300 job, those numbers matter when you're deciding where to spend.
$87
$260
$400
How much did it cost to get a new customer in 2023? One of my buddies, John Tory, just put out this information and he's probably done the most extensive research on home service businesses looking at the customer acquisition costs. And we're actually going to have him on the channel later this month to discuss some of his findings. But the average 2023 customer acquisition cost for organic is $87. Now this is for H Vac plumbing companies. Even if you're electrical, lawn care, carpet cleaning, it's all going to be relative, probably over $50 for a new customer at least. And so when you think about how much does a lead cost you? How much does a new customer cost you? You want to make sure that it works within your percentages of $300 to do a job and it's going to cost you $90. What's that percentage? You can see your Google local service ads, $260 and your PPC Google search ads, $400 for a new customer. So when you're thinking about setting up your marketing budgets and you're looking at customer acquisition costs, these are the averages. And so this is a good benchmark to see how you're currently performing for your customer acquisition cost.
