If your dashboard says $35 per lead, it feels like you're winning.
But when you run the real funnel math, your cost per move-in might be $280.
That gap isn't because you're bad at marketing. It's because most tracking systems measure activity, not customers.
Here's how to calculate the real number and use it to make better decisions.
Why "Cost Per Lead" Makes Operators Overconfident
Google Ads and most dashboards love to show:
- Cost per click
- Cost per conversion
- Cost per lead
The problem is simple:
A "conversion" is usually an interest signal. Not a paying tenant.
Most setups count things like:
- Form submits
- Calls over 60 seconds
- "Reserve" button clicks
Those can be useful signals. But they're not move-ins.
The Funnel Math That Changes Everything
Here's what the real flow often looks like:
1,000 clicks → $3,500 spend
100 "conversions" (forms + calls)
→ dashboard says: $35 per conversion
80 real inquiries (after spam/duplicates)
40 reservations
25 move-ins
18 retained past month one
Now your real numbers are:
- True cost per move-in: $3,500 / 25 = $140
- True cost per retained customer: $3,500 / 18 = $194
Your dashboard said $35. Reality is $140–$194.
That difference is why operators overspend and still feel confused.
Why This Matters (More Than People Think)
If you believe you're paying $35 to acquire a customer, you'll keep spending.
If you learn you're paying $194, you start asking smarter questions:
- Which campaigns actually drive move-ins?
- Where do reservations drop off?
- Is the website leaking customers?
- Is follow-up too slow?
- Are we buying "tire kickers"?
Wrong metrics create confident decisions in the wrong direction.
The Only CAC Formula That Matters
Level 1: True CAC (channel-specific)
True CAC = Total spend for a channel / Move-ins attributed to that channel
Example:
- Google Ads spend: $15,000
- Move-ins from Google Ads: 75
- Google Ads CAC: $200
Level 2: Blended CAC (business-wide)
Blended CAC = Total marketing spend / Total move-ins (all sources)
Blended CAC is great for a CEO view. Channel CAC is what you use to optimize.
What Counts as "Marketing Spend" (Keep It Honest)
Must include (for everyone)
- Paid media spend (Google, Meta, etc.)
- Agency fees (or contractor costs)
- Third-party listing fees (SpareFoot, SelfStorage.com, etc.)
- Call tracking software
- Website costs tied to conversion (hosting + core maintenance)
Optional (include if meaningful)
- Marketing staff time (portion allocated to acquisition)
- Photo/video/content costs
- Signage and offline (amortized)
A common mistake is only counting ad spend. That's how CAC gets understated.
The Data You Need (Simple Version)
You don't need a "perfect" stack to get started. You need three inputs:
1) From your PMS
- Total move-ins (by facility, by month)
- Source field (how they found you)
- Unit size / starting rent
2) From ad platforms
- Spend by campaign
- Clicks + "conversions" (still useful)
- Click ID / tracking parameters (for offline tracking later)
3) From call tracking
- Calls by source
- Call outcomes (inquiry vs reservation, if you tag them)
If your systems don't connect yet: do a manual month. Even one month of clean truth beats 12 months of noisy dashboards.
The Metrics Worth Watching Weekly
1) True CAC (Cost per move-in)
This is your anchor metric.
2) Payback period
How quickly do you recover acquisition cost?
Payback = CAC / monthly rent
Rule of thumb:
- Under 3 months = healthy
- Under 2 months = strong
3) CAC to LTV ratio
This tells you if growth is profitable.
LTV = tenure × monthly rent × margin
Target:
- 3x+ is healthy
- Below 3x: tighten spend or improve conversion/retention
4) CAC by channel + market
That's where optimization happens.
Build a "Truth Dashboard" in Google Sheets
Weekly (operator view)
| Metric | This Week |
|---|---|
| Spend | $3,500 |
| Inquiries | 80 |
| Reservations | 40 |
| Move-ins | 25 |
| True CAC | $140 |
Monthly (CEO view)
Track trend, not daily noise:
- CAC moving up/down?
- Which markets are expensive?
- Which channels are cheap?
The 6 Mistakes That Break CAC
- Counting leads instead of move-ins
- Under-counting costs (agency + listings + call tracking)
- Measuring too frequently (daily CAC is mostly noise)
- Treating all tenants as equal (unit size + tenure matter)
- Not fixing the "leak" (follow-up + website)
- Never connecting click → move-in (offline conversion tracking)
The Optimization Flywheel (Simple, Works Every Time)
- Measure true CAC by channel/market
- Identify the worst offenders
- Cut, fix, or narrow targeting
- Reallocate into the winners
- Repeat monthly
Over 6–12 months, this routinely cuts CAC 30–50% without "new tactics." It's mostly measurement + discipline.
Getting Started (No Fancy Tools Required)
This week
- Pull last month's spend by channel
- Pull last month's move-ins
- Compute True CAC
- Don't argue with the number
This month
- Add call tracking
- Standardize "move-in source" entry
- Start a basic truth dashboard
This quarter
- Implement offline conversion tracking
- Compute CAC by channel + market
- Make one meaningful reallocation and measure it
Key Takeaways
- Dashboards measure interest signals, not customers
- True CAC = spend / move-ins
- The gap is often 4–8x
- Payback under 3 months is a strong north star
- CAC by channel and market tells you what to cut and what to scale
- You don't need fancy tools, you need clean inputs and discipline
If you want margin, you need truth. And truth starts with one number: cost per move-in (real).