As we kick into the new year, most of us in the home building and services industry just finished (or maybe still working on) your digital marketing budgets. While it may be too late to make significant changes for this year, here’s the good news –– next year can be a lot easier.

With a few smart steps, budgeting can feel more powerful, opportunities become clearer and your business can operate even more efficiently.

Are You Tracking the Correct Metrics?

Effective budgeting relies on accurate tracking of the right metrics. If you’re not already tracking the correct data points, setting up a proper tracking system is the first step toward a more straightforward and reliable budgeting process.

Unfortunately, many home builders and service providers fail to monitor or prioritize these metrics, which can lead to guesswork or arbitrary increases based on the previous year’s figures.

So, what are the metrics you should be tracking?

What Metrics Should My Business Be Tracking?

To build a reliable budget and measure the ROI of your spending, start by tracking these essential metrics:

Percentage of Sales from Each Source

Knowing which lead sources produce the most revenue helps prioritize spending.

Percentage of Appointments That Lead to a Sale

Know how well your team converts leads into paying customers.

Percentage of Online Leads That Turn Into Appointments

Evaluate the effectiveness of your online lead funnel.

Website Traffic to Online Lead Conversion Rate

This measures actual leads — not general traffic conversions. Think completed forms, calls or chats from real, interested parties — not bots, spam or solicitations.

Cost Per Lead (CPL)

How much are you investing to acquire each lead and is it worth it?

How to Analyze Your Metrics Data

Understanding exactly how to apply the key performance metrics above can transform your entire approach to sales planning and marketing budgets. Here’s a quick example that shows exactly how to calculate what you need to achieve specific sales goals.

In our example, let’s assume you’re a home builder setting goals for the coming year. Your objective is to sell 200 homes, but you also want to see what it would take to scale up and sell 300 homes. These targets will act as benchmarks, showing the impact of increasing your sales goals and how to calculate the marketing inputs needed to hit them.

Percentage of Sales from Each Source

Let’s say 47% of your sales come from SEO. If your goal is to sell 200 homes next year, then 94 sales (47%) need to come from SEO leads. If your goal increases to 300 homes, then you’ll need 141 sales from SEO.

Calculations: 

For 200 homes: 47% of 200 equals 94 sales that must come from SEO.

For 300 homes: 47% of 300 equals 141 sales needed from SEO.

Percentage of Appointments That Lead to a Sale

If 13% of appointments lead to a sale and you need 94 sales from SEO, then you’ll need approximately 723 appointments to hit your goal. For 300 homes, you’ll need 1,085 appointments.

Calculations:

For 94 sales (200 homes): Divide 94 by 13%— you’ll need approximately 723 appointments.

For 141 sales (300 homes): Divide 141 by 13%— you’ll need approximately 1,085 appointments.

Percentage of Online Leads That Turn Into Appointments

If 55% of online leads result in appointments and you need 723 appointments, you’ll need approximately 1,315 online leads to hit your goal. For 300 homes, you’ll need 1,972 online leads.

Calculations:

For 723 appointments (200 homes): Divide 723 by 55%— that’s 1,315 leads.

For 1,085 appointments (300 homes): Divide 1,085 by 55%— that’s 1,972 leads.

Website Traffic to Online Lead Conversion Rate

Let’s say your website gets 10,000 visitors per month and generates 1,315 leads.

Calculations:

1,315 ÷ 10,000 = 13.15% conversion rate.

Cost per Lead (CPL)

If your cost per lead (CPL) is $43.23, and you need 1,315 leads, your budget for SEO leads would be $56,833. For 300 homes, needing 1,972 leads, the budget rises to $85,251.

Calculation:

For 1,315 leads (200 homes): Multiply 1,315 × $43.23 = $56,833.

For 1,972 leads (300 homes): Multiply 1,972 × $43.23 = $85,251.

Take the Uncertainty Out of Budgeting & Drive Real Growth

Budgeting doesn’t have to be complicated — or based on assumptions. By tracking the right metrics, you can predict exactly what your business needs to hit its revenue goals and build a budget grounded in data, not estimates.

At Rhoads Creative, we help home builders and service providers connect the dots between data and strategy, giving you a clear roadmap to scale your business without overspending.

Whether it’s pinpointing your top-performing lead sources, calculating the appointments and leads required to meet your targets, or ensuring your marketing dollars deliver measurable ROI — we provide actionable insights that fuel the growth you want.

Contact Rhoads Creative today and let’s make next year your most profitable year yet.