February 18, 2022

How Much Does A Moving Company Lead Cost?

A big part of growing your moving company is winning new customers. Attracting potential customers is what’s known as lead generation. While leads can come from referrals and reviews, the main way to actively generate leads is digital marketing. 

In 2022, digital ad spending worldwide is predicted to reach $441.12 billion – that’s a lot of companies investing in online marketing!

Digital marketing provides small businesses with a tremendous opportunity to reach new customers. But what exactly goes into the cost of a marketing lead?

What Factors Affect Cost Of A Marketing Lead?

The cost of a lead depends on multiple factors including industry, product cost and lead quality. High quality leads, aka buying an expensive product in a highly competitive market, are usually most expensive. 

Different sources of lead generation can also have different costs. Search Engine Optimization (SEO), are considered free as there are no direct costs associated with them (for more information on SEO strategy, check out our Mover Masterclass). Social media advertising costs, on average, $58 per lead

How Do I Calculate Cost Per Lead?

Cost Per Lead (or, CPL) is the most commonly used metric when calculating the cost and overall efficiency of a paid digital marketing campaign. Let’s say you spend $500 on a Facebook Ad and you end up with 25 leads. That would mean your CPL for that campaign is $20. 

You can get this by using the formula:

Total amount spent on digital marketing/ Number of new leads from digital marketing 

How Do I Calculate Customer Acquisition Cost?

While CPL covers the cost of attracting a potential customer, Customer Acquisition Cost (CAC) is the marketing metric used to measure the cost of actually gaining a paying customer. This metric is also called Cost Per Acquisition (CPA). CAC/CPA is calculated using a similar formula: 

Total digital marketing spend / Number of new customers

For a closer look at what goes into calculating CAC, check out this blog post. 

Whether you invest in Facebook Ads, an SEO approach, or another lead source, these formulas can help you calculate the actual cost to your moving company of each lead and customer. 

Why do you need to calculate CAC?

It is important to understand the costs of recruiting new customers if you are running a successful moving company. This is where the Customer Acquisition Cost CAC calculator comes into play. This will help you make informed decisions about your business strategy and budget by evaluating how much money you need to spend on marketing and sales activities to attract a new customer

Knowing your CAC allows a moving business to assess your marketing initiatives’ performance and help identify areas for improvement in your efforts to acquire potential customers. It will also help you set revenue growth and profit targets in the long run.

Example of CAC calculation for Moving Company

Calculating CAC for a moving business involves looking into the various costs connected with obtaining new customers.

As with any business, it is essential to measure CAC regularly. Since the marketing costs do fluctuate along with the demand and if you are able to see what your Customer Acquisition Cost is monthly, quarterly, and yearly, it will enable you to make informed decisions on marketing spend. Marketing charges, sales commissions, referral fees, and other associated costs are usually included. A moving company that understands CAC can make sound decisions about its marketing strategy and optimize its resources to gain more customers.

To calculate your CAC, break it down into sales and marketing costs:

Where ‘Marketing’ is the cost of getting leads. And ‘Sales’ is the cost of quoting, estimating, and closing clients. Time spent with potential customers falls under the sales cost bracket.

Calculating the CAC formula helps you gauge whether your moving company‘s marketing expenditure is on track, making it one of the essential formulas that your sales teams need to know. To calculate the CAC, divide the total marketing and sales expense by the number of new customers you have acquired.

CAC= Total Marketing + Sales Expenses / Number Of New Customers

Search Advertising:

Search advertising or Search engine marketing SEM is a type of online advertising in which companies bid on relevant keywords or phrases. When users enter these particular terms like’ local moving companies’ into search engines like Google, google ads appear at the top or bottom of the search engine results page SERP. This is also important when it comes to CAC.

In the context of CAC, search advertising plays a significant role. It is a paid marketing channel that can drive targeted traffic to a website, generate leads and ultimately acquire new customers. By investing in a search advertising campaign, your moving company business can increase its visibility online, reach a wider audience and attract users actively searching for your services. Calculating the CAC for search advertising similarly involves the costs of running search ads and tracking the number of new customers acquired through such ads. Hence the CAC calculation remains the same. 

CAC = Total Search Advertising Expenses / Number of New Customers Acquired

Incorporating search advertising costs into the CAC calculation sheds light on the cost-effectiveness and profitability of acquiring clients through this particular channel. It will enable your moving company to assess the Return on Investment ROI of your search advertising expenses and decide how to utilize your marketing budget best.


Understanding the expenses associated with different marketing channels, including SEO is important when estimating the CAC for your company. SEO or Search Engine Optimization is a low-cost approach for generating quality leads and attracting potential customers to your moving company’s website. 

The cost per lead generated by SEO efforts might vary based on a number of factors. Moving leads are critical to the success of a moving company, but before that, it is important to distinguish between good and bad leads in order to measure the effectiveness of SEO spending in obtaining consumers. Website optimization, keyword research, content creation, link building and continual monitoring, and continuous monitoring and adjustments all add up as expenses under SEO. These strategies help to increase organic search visibility and generate quality leads for users actively looking for moving services

When it comes to calculating customer acquisition costs for SEO, you will have to add together all of your SEO costs which must include the total man-hours and other monetary investments. You then divide that number by the total number of SEO conversions or moving leads, which you can track via an analytics software. 

CAC = Total SEO Expenses / Number of Customers Acquired through SEO

Investing in SEO can help your moving company reduce CAC in the long run. By attracting qualified leads organically, a moving company can reduce its reliance on paid advertising and lower the overall acquisition costs.

Lead Generation on Yelp, Thumbtack, Angi, etc.

When it comes to lead generation, online platforms like Yelp, Thumbtack, and Angi offer valuable opportunities for service providers like your moving company to connect with prospective customers. Here customers can search for specific services like movers and packers in their region using Yelp etc, which provides real-time access to a large pool of moving companies.  Your company can include your ratings, testimonials, and other features to increase credibility and help increase the conversion rate

Any fees or expenses related to maintaining a profile on these platforms, marketing services, or acquiring leads are included in advertising and lead generation costs. 

To calculate CAC, this formula can be used.  

CAC = Total Cost Lead Generation and Advertising/ Number of Customers Acquired


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