How to calculate the real ROI of a lead generation campaign

"How much does a lead really earn me?" The question seems simple. The answer is too often vague, or even wrong. Here is the method used by our 200+ clients to calculate ROI without illusion — and stop paying for providers who don't keep their promises.

1. Calculate your real CAC (not your imagined one)

The customer acquisition cost (CAC) includes much more than the price paid per lead. It comprises:

• The price of the leads (CPL × quantity)
• The sales reps' salaries who handle them (pro rata)
• The tools (CRM, dialer, automation)
• The internal commissions paid to advisors
• The social charges and taxes
• The management (your management time)

Concrete example — Firm with 3 advisors

If 12 contracts are signed from these 100 leads: CAC = 320 CHF per client. To be compared imperatively to your LTV.

2. Know your LTV

The Lifetime Value (LTV) measures the average total revenue from a client over the lifetime of the business relationship.

For a supplementary health insurance broker:

• Year 1 commission : 600 CHF (typical VHI 3-4 people)
• Renewals years 2-6 : 5 × 120 CHF = 600 CHF
• Possible cross-sell (3rd pillar, life): 250 CHF average
• Total LTV : ~1,450 CHF

To budget with a churn rate of 8 to 15% per year to stay realistic.

3. The LTV / CAC ratio, the ultimate indicator

This ratio is the health barometer of your business. The universal rule:

4. The payback period

How many months for a client to repay their CAC? Payback < 6 months = healthy. Between 6 and 12 months = watch closely. Beyond 12 months = your cash flow suffers, scaling impossible without raising funds.

For a firm with normal margins, aiming for a payback of 3 to 5 months is the goal. This means that by the 6th month you are cash-positive on the cohort.

5. The hidden-cost trap

Don't forget: management time, SaaS tools, taxes, appointment no-shows, administrative returns, ongoing training, professional liability insurance, accounting. Always add 20-25 % to direct costs to calculate the "real" CAC.

Classic mistake: forgetting the policy cancellations in year 1. A client who cancels at 6 months doesn't trigger the 2nd commission tranche, and may lead to a partial clawback. To budget at 5-10% of the portfolio.

6. The dashboard to track every month

Without these 7 indicators, you're flying blind:

1. Volume of leads received
2. Reachability rate (% leads contacted)
3. Appointment-set rate (% leads → appointments)
4. Closing rate (% appointments → contract)
5. Average deal size (average year 1 commission)
6. CAC, LTV, LTV/CAC ratio
7. Payback period

Put them on a Notion, Airtable, or Looker Studio dashboard updated every Friday. Management becomes dramatically simpler.

Swiss market benchmarks 2026

As a guide for an insurance brokerage firm:

• CAC : 80 to 350 CHF (depending on vertical and maturity)
• Average LTV : 800 to 3,500 CHF
• Healthy ratio : 3.5:1 to 5:1
• Gross margin : 35 to 55% of revenue

If you're far from these benchmarks, there's a lever to activate: either improving the pipe (acquisition), the conversion (sales), or the retention (client relationship).