A Complete Guide to Grading Leads in Google Local Services Ads

If you’ve been using Google Local Services Ads (LSA), you’ve likely come across recent changes to how leads are managed. Google no longer allows businesses to manually dispute leads that don’t meet quality standards. Instead, the system automatically identifies invalid leads and issues credits when appropriate.

The manual dispute process may be gone, but your input is still needed. You now grade leads and provide specific feedback. This helps Google understand what qualifies as a poor lead and improves its filtering system over time.

This guide from Infintech Designs explains everything you need to know, including step-by-step instructions on grading leads, the reasons behind the changes, and how your feedback helps optimize the quality of your leads.

Contact us now to learn more! 

Why Did Google Remove Manual Lead Disputes?

The change aims to make lead management faster and more efficient. Instead of manually disputing leads—often requiring detailed submissions and waiting for a response—Google’s automated system now handles the process.

This means:

• Time savings for businesses that previously spent hours on disputes.
• Automatic credits for invalid leads are flagged by Google’s system.
• Improved filtering over time based on consistent user feedback.

While businesses no longer manually dispute leads, grading them remains essential. Your feedback helps Google better understand what works for your business and what doesn’t.

How to Grade Leads in Google Local Services Ads

Follow these simple steps to review and grade leads in your Google Local Services Ads dashboard:

1. Log In to Your LSA Dashboard

• Go to your Google Local Services Ads account.
• Click on the Leads tab to access your list of recent calls and inquiries.
• Use filters and select Active to display all current leads.

2. Identify the Lead to Review

Review the list and find leads that seem suspicious, irrelevant, or unusable.

Examples include:

• A call from someone outside your service area.
• A lead requesting services your business does not provide.
• Spam calls, such as robocalls or hang-ups.

Click on the specific lead to view its details, including call time, business category, and status.

3. Grade the Lead Quality

When you open the lead, Google will ask:

“How satisfied are you with the quality of this lead?”

You can choose from five options:

• Very satisfied – The lead was relevant and useful.
• Somewhat satisfied – The lead was okay but not ideal.
• Neither satisfied nor dissatisfied – Neutral quality.
• Somewhat dissatisfied – The lead had issues but wasn’t completely invalid.
• Very dissatisfied – The lead was unusable or irrelevant.

If you feel the lead is clearly invalid, select Very dissatisfied.

4. Provide Feedback on the Lead

After selecting your satisfaction level, Google will prompt you to explain why the lead was of low quality.

You can select multiple reasons, including:

• Outside service area: The lead came from a location you don’t serve.
• Wrong service: The lead requested a service you don’t offer.
• Caller not ready to book: The person wasn’t serious about making a decision.
• Spam: This includes robocalls, silent calls, or scam inquiries.
• Duplicate lead: You received the same inquiry more than once.
• Employment or sales pitch: The caller was job-seeking or promoting a product or service.
• Other: Add your own notes if none of the listed options apply.

Example feedback notes:

• “The lead came from an area 50 miles outside our service zone.”
• “The caller asked about HVAC repairs, but we only offer plumbing services.”
• “This was a robocall with no valid interaction.”

The more specific your feedback, the better Google can understand what makes a lead invalid.

5. Submit Your Grading

Once you’ve rated the lead and provided feedback, click Submit. Your input is recorded, and Google uses it to improve their system.

How Your Feedback Improves Lead Quality

Grading leads and submitting feedback might feel like a small step, but it has significant benefits:

1. Better Filtering for Future Leads

Google’s algorithms learn from the feedback you provide. If enough businesses flag certain types of leads—like spam calls or inquiries outside service areas—Google becomes better at identifying and filtering them automatically.

2. Automatic Credits for Invalid Leads

While you can no longer dispute leads directly, Google reviews flagged leads to determine if they’re invalid. If they find a lead qualifies for a credit, they apply it to your account without any additional effort from you.

3. Optimized Ad Performance

Improving lead quality over time means fewer wasted calls and better use of your ad budget. High-quality leads are more likely to convert into paying customers, improving your overall return on investment (ROI).

Best Practices for Grading Leads

To get the most out of Google Local Services Ads, follow these best practices:

1. Review Leads Regularly

Make it a habit to check your leads daily or weekly. The sooner you grade poor leads, the faster Google can adjust its system.

2. Be Accurate and Detailed

Select the most relevant reasons for dissatisfaction and provide specific notes when necessary. Vague feedback doesn’t help Google improve its filtering.

3. Monitor Patterns

If you notice recurring issues—like leads outside your area—review your LSA settings to confirm your service area and business categories are correct.

4. Focus on High-Value Feedback

Flagging spam or duplicate leads is important, but also focus on providing insights into calls that seem legitimate but don’t align with your services. This helps Google define what counts as a “qualified” lead.

Final Thoughts

Google’s removal of manual disputes in Local Services Ads has simplified lead management, but your input still matters. By consistently grading leads and providing clear, detailed feedback, you help Google improve its automated system, leading to better lead quality over time.

While you can’t manually dispute leads anymore, this new process saves time, reduces frustration, and helps ensure your ad budget is spent on leads that matter.

Stay proactive, review your leads regularly, and trust the system to improve with your feedback.