How to tell if your marketing is actually working

Kirk5 min read
Printed bar and line charts on a wooden desk, the kind of report used to check whether marketing is working
Most owners can't say which channel brought last month's customers. Here is the smallest amount of measuring that actually settles it, most of it free.

You are spending money every month on ads, social, a website, maybe someone to run it. Ask most owners which of those brought in last month’s customers and the honest answer is a shrug and a feeling. That feeling is usually wrong, and it is expensive, because it means the thing that works gets cut alongside the thing that does not.

You do not need dashboards or a data person to fix this. Here is the smallest amount of measuring that actually tells you something.

Why is it so hard to tell what is working?

Because customers rarely arrive by one route. Somebody sees your van, looks you up on Facebook a week later, searches your name, reads two reviews, and calls. Every one of those touched the sale, and whichever one you happen to ask about will get the credit.

The second problem is that the most common ending is a phone call, and phone calls leave no trail. A business can have a genuinely successful ad campaign and see nothing at all in its website statistics, because everyone who saw the ad picked up the phone instead.

What should a small business actually measure?

Measure four things, monthly, and ignore the rest until these are steady:

  • Enquiries. Calls, forms, messages and walk-ins. One number, counted the same way every month.
  • Where each one came from. Not perfectly. Roughly is enough to make decisions.
  • How many became customers. Twenty enquiries and two jobs is a very different business from twenty and twelve.
  • What a customer is worth. Average job value, and whether they come back.

Those four turn every marketing decision into arithmetic. If ads cost 400 dollars and produced six enquiries, of which two became 900 dollar jobs, you know what to do next month. Without them you are guessing with real money.

How do I track where enquiries come from without software?

Ask, and write it down. “How did you hear about us” asked on every call and every form, recorded in one spreadsheet, will beat most tracking setups a small business could buy.

Make it easier on yourself with three habits. Put the question on your contact form as a required dropdown with five options rather than an open box. Give whoever answers the phone a printed tally sheet so it takes two seconds. And accept vague answers, because “I found you on Google” is genuinely useful even if it does not distinguish the map result from the ad.

Then add the free tools. Google Business Profile shows how many people called, asked for directions or clicked through to your site. Google Search Console shows what people searched before they arrived. Both are free, both take an hour to set up, and between them they cover most of what a local business needs to know.

What about proper tracking on the website?

Website analytics tells you what happens after someone arrives, which matters once you are spending real money on getting them there. The setup worth having is analytics installed correctly, form submissions and button clicks recorded as goals, and a separate phone number on any ad campaign so calls from it are countable.

This is the part owners most often get wrong, usually by installing analytics and never setting up a single goal, which leaves them with a lot of visitor charts and no idea how many enquiries came from where. If you would rather it was set up once and properly, our analytics and tracking setup runs $395 as a one-time job. The free route is entirely doable in an evening if you are comfortable pasting a code snippet into your site.

Target Marketeer builds and runs marketing for small businesses nationwide, based in Greensboro, North Carolina, and the pattern we see constantly is a business quietly funding something that has never produced a customer, while starving the thing that produces most of them.

How long before the numbers mean anything?

Give any channel three months before judging it, and longer for anything unpaid. Ads produce data fastest, usually within a few weeks, because volume arrives quickly. SEO and content take months by nature. Social sits in between and is the hardest to attribute, because it seeds decisions that show up later as somebody searching your name.

Watch for the trap of the last click. If someone finds you through a blog post, follows you for two months, then searches your business name and calls, most simple tracking will credit “direct” and the blog post will look like it did nothing. When a channel looks worthless, check whether name searches went up while it was running before you cut it.

Quick answers

How much should a small business spend on marketing?

A common benchmark is 5 to 10 percent of revenue, higher for a new business trying to establish itself. The percentage matters far less than knowing what the current spend returns, which is the point of measuring at all.

What is a good cost per enquiry?

It depends entirely on what a customer is worth to you. A roofer can happily pay 80 dollars for an enquiry that becomes an 8,000 dollar job. A cafe cannot. Work out your own number from average job value and how many enquiries become customers.

Do I need to track phone calls?

If you spend on ads, yes, because otherwise the channel producing the most calls will look like the one producing the fewest results. A separate tracking number for each campaign is the simplest way and costs a few dollars a month.

Can I trust the numbers in Facebook and Google Ads?

Treat them as the platform’s own account of its performance, which is optimistic by design. Both count conversions they had a hand in, so totals across platforms often add up to more sales than you actually made. Your own enquiry count is the tiebreaker.

What is the single most useful number?

Enquiries per month, counted consistently. Everything else refines it, but a business that knows that one number and how it moves is already ahead of most of its competitors.

Where to start

Open a spreadsheet today with four columns: date, name, how they found you, and whether they bought. Fill it in for one month. That single sheet will settle arguments you have been having with yourself for years, and it will tell you exactly where the next dollar should go. Our post on setting a marketing budget covers what to do with the answer.

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