How do I know if my marketing is working?

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Business owners, freelancers, and anyone learning the fundamentals of sales, marketing, and running a business.

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Count customers, not attention.

Ask every inquiry how they heard about you and record the answer. After three months, you will be able to say which channels produce customers and roughly what each customer costs you.

The single most useful calculation is cost per customer by channel: money spent on that channel divided by customers it produced. A channel with modest reach and a low cost per customer is worth more than a popular one that produces nothing.

Give any new activity a fair run — usually three months — before judging it. And judge it against a number you set in advance, not against how it felt.

Two honest questions each month: which activity produced the most customers, and which cost the most for the least? The second question is where the savings are.

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