What each figure means
| Metric | Formula | Why it matters |
|---|---|---|
| Cost per lead (CPL) | spend ÷ leads | What the ad platform optimises for, and the easiest number to make look good |
| Cost per qualified lead | spend ÷ qualified leads | Strips out spam, wrong-area and no-budget enquiries |
| Cost per booked call | spend ÷ booked | Shows whether follow-up turns interest into conversations |
| Cost per customer (CAC) | spend ÷ customers | The number that decides whether the ads pay |
The stage conversion rates (qualified ÷ leads, booked ÷ qualified, won ÷ booked) show where the biggest losses are.
How to read the drop-off
- Less than half of leads qualify: the ad is attracting the wrong people, or the form is too easy. Instant forms with pre-filled details tend to produce more but weaker leads. Adding a qualifying question or switching to a “higher intent” form usually lowers volume and raises quality.
- Qualified leads do not book: slow or inconsistent follow-up. Contacting a lead within minutes rather than hours makes a large difference. See the Lead Follow-Up Sequence Planner.
- Calls do not close: pricing, offer fit or sales process, rather than advertising.
Feed the results back to Meta
Meta optimises for whatever event you tell it counts as success. If it only sees “lead”, it will find more people who fill in forms, not more who buy. Sending qualified or won events back through the Conversions API (often via your CRM) lets the system learn what a good lead looks like. Our article on poor-quality Meta leads explains how.
Compare with your targets
Once you know your real cost per customer, compare it with what a customer is worth using the Target CPA Calculator.