Issue #219: The Conversation You’re Avoiding With Clients (That’s Costing You Retention)

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Hey there,
Here’s the direction most agencies miss, and it quietly kills otherwise good campaigns.
You never actually defined what “success” means with the client.
We all know the default answer you’ll get if you ask a client what they want.
“More revenue than I spend.” Sure. That’s obvious. But it’s also useless if you don’t quantify it.
Because in local services, not all revenue is created equal. And not every job is meant to be profitable on the first touch.
Take plumbing as an example.
A drain cleaning call might bring in a couple hundred dollars. On its own, that job might barely break even once you factor in labor, truck cost, and materials.
But that’s not the real game.
That same visit often turns into a camera inspection. Then maybe a bigger issue gets discovered. And suddenly you’re talking about a sewer line replacement worth ten, fifteen, even twenty thousand dollars.
So now ask yourself.
Was that original lead “unprofitable”?
Or was it the entry point to a much larger revenue event?
This is where most agencies stay too surface-level.
They optimize campaigns based on front-end CPL and immediate ROAS. Meanwhile, ignoring the lifetime value, job progression, and backend revenue.
And if you’re not having that conversation early with your client, you’re flying blind.
Same thing with keywords.
“Drain cleaning” clicks are cheaper. Lower intent, lower immediate ticket.
“Sewer replacement” clicks are expensive. High intent, high ticket.
But here’s the nuance.
Some clients might not even care if they lose money on drain cleaning, if those get converted into bigger jobs.
So if you come in optimizing purely for cheapest CPL or immediate ROI, you might accidentally kill the very strategy that makes them profitable long term.
This is the conversation agencies need to start having upfront.
Not after performance dips. Not when the client gets nervous.
At the very beginning.
Ask things like:
  • What’s your minimum acceptable return on ad spend?
  • Is that measured per job, per week, or over 90 days?
  • Are there any foot-in-the-door services?
  • Which services are your real profit drivers?
  • What percentage of small jobs turn into larger ones?
And then go one level deeper. “What does a ‘good month’ actually look like to you?”
Sometimes it’s breaking even on 70 percent of jobs and making all the profit on the remaining 30 percent.
A lot of local businesses need at least 4x just to stay healthy once you factor in real costs.
Labor isn’t cheap. Materials aren’t cheap. And overhead adds up fast.
If you don’t anchor expectations around that reality, you end up in the worst position possible.
The campaign is doing exactly what it should.
But the client thinks it’s failing.
And here’s the bigger issue. When you skip this conversation, you’re not just risking performance misalignment.
You’re missing business intelligence.
The kind that helps you build smarter campaigns, position yourself as a strategic partner, and actually retain clients long term.
Because now you’re not just managing ads. You’re helping them make better decisions about how they grow.
So before you launch the next campaign, or even audit an existing one, take a step back.
Don’t ask, “How do we get cheaper leads?”
Ask, “What does success actually look like for this business?”
The answers will completely change how you build and optimize everything.
And if you ever get overwhelmed, that’s what we are here for. We’re here to support you behind the scenes, working as your extended team to help scale your agency. Book a quick call with us today.
Talk to you next week,
Avi
CEO & Chief Wizard