How Do I Know If My Marketing Is Working?
Here’s the scenario: You’ve been posting on social, maybe running some ads, maybe even sending emails. But in the back of your mind, the question nags: “Is any of this actually working?”
You’re not alone. According to HubSpot’s State of Marketing report, over 40% of marketers admit they struggle to prove ROI. For small businesses with tighter budgets, that problem stings even more.
If you can’t tell whether your marketing is generating revenue, you’re essentially flying blind. This post will walk you through exactly how to know if your marketing is working—so you can stop guessing and start making decisions based on results.
Why It’s Hard to Measure Marketing Impact
Small business owners face a unique challenge:
Vanity metrics confuse things. Likes, shares, and impressions feel good, but they don’t always mean sales.
Sales cycles are messy. A customer may see three ads, visit your website, and talk to a friend before buying. Which touchpoint gets the credit?
Limited tools. Without the right analytics setup, it’s hard to connect dots.
This is why many small businesses get frustrated and give up too early on marketing efforts.
Measuring the Wrong Metrics: Counting Followers and Likes
The most common attempted fix? Tracking vanity metrics.
“We gained 300 followers last month.”
“That post got 1,000 likes.”
These numbers feel good, but they don’t answer the key question: Did it make us money?
Example: A post that gets 500 likes but brings in zero leads is less valuable than one that gets 10 likes and converts two people into paying customers.
Tracking Success vs Vanity: Tie Marketing to Revenue
Instead of chasing vanity metrics, you want metrics that matter. The outcome? Knowing exactly how your marketing affects sales and revenue.
Lead generation: How many new leads came from your marketing?
Conversion rate: What percentage of leads turned into customers?
Customer acquisition cost (CAC): How much did it cost to win a new customer?
Return on investment (ROI): Did the money you spent generate more money back?
According to Firework, 83% of marketing leaders rank proving ROI as their top priority.
But What if ROI Is Too Hard to Measure?
This is a common pushback. Many owners think ROI is only something big companies can track.
The reality? ROI can be measured at any scale — you just need the right approach.
ROI doesn’t need to be perfect. It just needs to be directional.
Even simple math can reveal whether your campaigns are paying off.
Example: If you spend $1,000 on Facebook ads and see $5,000 in new revenue directly linked to those ads, that’s a 400% ROI. Even if it’s not perfect attribution, it tells you enough to know it’s working.
5 Steps to Know if Your Marketing Is Working
It’s time to stop guessing. If you take the following 5 steps, you’ll know whether your marketing is growing your business or wasting your money.
Step 1: Define Success Before You Market
You can’t know if marketing is working unless you know what “working” means. Ask:
Do we want more leads?
Do we want more calls booked?
Do we want online orders or foot traffic?
If you’re just getting started, read The Next Three Steps Every Small Business Should Take.
Step 2: Set Up Basic Tracking
Before running campaigns, make sure you can measure results:
Google Analytics 4 (GA4): Tracks website traffic, conversions, and user behavior.
UTM Links: Simple codes on URLs to track where clicks came from.
CRM Tools: Even basic tools like HubSpot CRM or Zoho track lead sources.
Call Tracking Numbers: For local businesses, this shows which marketing channels drove calls.
Companies that track marketing metrics regularly are 60% more likely to report effective campaigns (CJPI).
Step 3: Measure the Right Metrics
Here’s a breakdown of metrics that matter vs. those that mislead:
Matter: Leads generated, sales closed, ROI, CAC, retention rate.
Mislead: Likes, followers, impressions, reach.
Pro tip: Track leading metrics (like form fills) and lagging metrics (like revenue) to get the full picture.
If you’re unsure whether your marketing is worth the investment, take a look at our Marketing ROI Explained for Small Businesses.
Step 4: Calculate ROI Simply
Formula:
(Revenue from Marketing – Marketing Spend) ÷ Marketing Spend = ROI
Example:
Spend = $2,000
Revenue generated = $8,000
ROI = (8,000 – 2,000) ÷ 2,000 = 300%
Even if attribution isn’t perfect, this formula gives you a clear direction.
Use our Marketing ROI Calculator to make it easier.
Step 5: Review & Adjust Monthly
The best marketers don’t “set and forget.” They review and adjust.
Double down on channels with the best ROI.
Kill tactics that aren’t working.
Test one new idea at a time.
Fast-growing companies are 71% more likely to review strategies monthly (CJPI).
FAQs About Marketing
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Track the actions that lead to sales, not just likes. Set up goals (form fills, calls, checkouts), tag your links, and review results monthly. Look at leads, conversion rate, customer acquisition cost (CAC), and ROI.
A simple ROI formula is: (Revenue from marketing – Marketing cost) ÷ Marketing cost.
Don’t want to calculate it? Click here to use our Marketing ROI Calculator.
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Vanity metrics (followers, views, raw impressions) look good but don’t prove revenue.
Actionable metrics (qualified leads, conversion rate, CAC, retention) tie to business results and help you decide what to do next.
HubSpot’s breakdown shows what to stop measuring and what to track instead.
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Monthly is a strong cadence for most small teams. It’s frequent enough to spot trends, but not so fast that you react to noise. Research highlights that companies reviewing strategy monthly grow faster than those that don’t.
Conclusion: Stop Guessing, Start Measuring
Marketing without measurement is like driving with your eyes closed. You might get somewhere—but chances are, you’ll crash.
By defining success, setting up tracking, and focusing on ROI, you’ll know exactly what’s working and what’s not.
And when you know that, you can stop wasting time on fluff and start doubling down on what grows your business.
Ready to stop guessing and start tracking ROI? Let’s connect.