Benchmarks for therapy practice Google Ads
If you’re running Google Ads for your therapy practice, then you need to be tracking two things: cost per lead (CPL) and customer acquisition cost (CAC).
CPL = total ad spend / total calls or form submissions
CAC = total ad spend / total new clients
What does “good” look like for therapy practice Google Ads?
According to Joshua Brummel of My Therapy Flow, a “good” CPL for insurance-based practices is $40-$60 per lead unless they have a distinct specialty (e.g. EMDR) and/or competitive area (e.g. New York City). For cash pay practices, a “good” CPL is between $80-$120 per lead.
Typical conversion rate from Google Ads leads is around 30%-60% for insurance-based practices and 15%-20% for cash pay practices.
As a cash pay practice at a 20% conversion rate from Google Ads leads, you’d need to generate 5 leads to generate one new client. At a CPL of $50 per lead, your CAC would be $50 x 5 = $250.
That means to generate four new clients per month, you’d need to spend $1,000 per month on Google Ads.
With that said, I generally don’t recommend Google Ads for solo or small group practices with limited marketing budgets. But they can be effective for larger group practices.