Understanding and Optimizing Conversion Rates for Local Professional Services through Google Ads
The average conversion rate for local professional services via Google Ads (formerly AdWords) can vary widely depending on a range of factors including industry competition, ad quality, targeting, and specific local market dynamics. According to my latest data as of August 2023, here are some general benchmarks to consider:
Photography Services
Typically, the conversion rate for photography services ranges between 2% to 5%. This range can fluctuate based on the effectiveness of the ad campaign, the quality of the landing page, and specific local market dynamics.
Legal Services
These services often achieve higher conversion rates, typically from 5% to 10%. The higher value and urgency associated with legal needs contribute to this higher rate. However, these rates can still vary significantly based on similar factors as mentioned above.
Tutoring Services
The conversion rate for tutoring services usually falls within the range of 3% to 7%. Similar to photography and legal services, these rates can be affected by the ad campaign's effectiveness and the landing page quality.
It's important to continually optimize both your ad campaigns and landing pages to improve conversion rates.
Higher Conversion Rates in Local Professional Services
While these benchmarks provide a general idea, it's certainly possible to achieve higher conversion rates. For example, I worked on a local HVAC technician account based in Phoenix, AZ. During the summer months, the conversion rate was an impressive 15%. We used AdWords 'Call-Only' ads, which resulted in the hottest of leads, as you can imagine, since the demand for HVAC services increases during the summer.
According to conventional wisdom and marketing theory, a 4% conversion rate is considered a solid benchmark. However, the Pareto Principle (or the 80/20 effect) suggests that 20% of your prospects will generate 80% of your great leads. This means that out of 100 unique clicks, only 20 visitors might be prospects of some degree, either through a call or an online booking, or by filling out a contact form.
From those 20 prospects, the Pareto Principle again applies, generating 80% of sales from 20% of those prospects. Thus, only 4 out of 20 (or 20% of 20) of these prospects would be solid leads, which eventually led to 80% of the sales.
Optimizing for High Conversion Rates
A conversion rate in the 2% to 5% range is generally considered good. According to Wordstream, only 25% of top accounts have conversion rates exceeding 5%. Therefore, instead of trying to compete with industry averages, focus on your own numbers, particularly your cost per lead (CPL) and average customer value (ACV).
The sales cycle for local professional services can vary greatly, depending on the size of the target customer and the type of service needed. For our HVAC technician client, we expected the following stages of the sales cycle: 12 engagements, 50 proposals, and 60 closes on proposals. However, this can vary widely depending on numerous factors.
Regularly evaluating and optimizing your Google Ads campaigns and landing pages can help you achieve higher conversion rates, leading to better overall performance and higher ROI.