A lead is not a result
One Google Ads account measured here produced 2,410 conversions at £19.21 each from £46.3K of spend. That is a good number on a dashboard. It says nothing about how many of those conversions became customers, because the dashboard stops at the form and the customers are decided in the fortnight after it.
That is the problem with lead generation as it is usually sold. The report ends exactly where the interesting part starts.
Why the cheapest lead is usually the worst one
Three things happen in an account optimised on cost per lead, and none of them is the platform’s fault.
The platform finds cheaper leads by finding worse ones. Ask for form fills and smart bidding buys form fills, including from people who will never answer the phone. The cost per lead falls and the cost per customer rises, and only one of those is on the report.
The source is lost at the form. An enquiry arrives in an inbox with no record of the search, the campaign or the page that produced it. Nine months later the contract is signed and nobody can say which channel earned it, so next quarter’s budget is set on instinct.
Nobody times the reply. The gap between the enquiry and the first human response is regularly the biggest lever in the account, and it sits outside marketing, so nobody measures it. A lead answered the next morning is a lead somebody else already spoke to.
So the work here starts with a definition of qualified, written down and agreed, and a line in the CRM for where each enquiry came from. Everything else is built on those two.
The five questions before any spend
What is a qualified enquiry, in one sentence you and your sales team both agree with?
Where does an enquiry go the moment it arrives, and who sees it first?
How long, on average, before a person replies?
Which channel produced last quarter’s signed customers?
What is one customer worth, so the arithmetic on cost per lead can be done at all?
If any of those has no answer, that is the first week’s work, and it costs less than the next month of spend.
Where more leads is the wrong answer
If enquiries already wait a day for a reply, more enquiries make the queue longer. If the sales process converts one in twenty, the fix is the process, and paying for more traffic at the front of it is paying to disappoint more people. Both of those get said on the review, and both have ended an engagement before it started.
Lead generation also cannot buy you a list. Purchased contacts and shared leads are not used here, and in most of the markets worth reaching they are illegal to email anyway.
Count customers, not forms. Everything upstream changes once the target does.