How to measure small business advertising

Many small businesses spend on advertising without knowing whether it works. A few simple habits fix that.

The numbers that matter

• Spend per channel.
• Leads from each channel.
• Cost per lead.
• Customers won from each channel.
• Cost per customer and revenue from those customers.

Simple ways to track

• Ask every new customer how they heard about you, and record the answer.
• Use a tracking phone number for each major channel.
• Use analytics and conversion tracking on your website for forms and calls.
• Use a specific offer or code for print or radio.

Review on a schedule

Look at results monthly and compare with the same month last year.

Allow for lag

A sale can happen weeks after the first contact, so judge over a few weeks, not a few days.

Do not rely on clicks alone

Clicks cost money and do not show results. Leads and customers do.