It’s a question we hear constantly from Australian small and medium enterprises: how do I actually know if my marketing is working? Too often, businesses focus on ‘vanity metrics’ – things that *look* good but don’t translate to profit. We’re here to help you cut through the noise and focus on what truly matters: return on investment (ROI).

The key is to move beyond simply tracking activity and start measuring outcomes. This means linking your marketing efforts directly to revenue. It’s not enough to know you had 1000 website visitors; you need to know how many of those visitors became leads, and crucially, how many leads became paying customers.

• Customer Acquisition Cost (CAC): This is the total cost of your marketing divided by the number of new customers acquired. Understanding your CAC is fundamental. If it costs you $100 to acquire a customer who only spends $50 with your business, you have a problem.
• Conversion Rates: Track the percentage of people who move from one stage of your marketing funnel to the next. For example, website visitor to lead, lead to qualified lead, qualified lead to customer. Identifying drop-off points helps us optimise your campaigns.
• Lifetime Value (LTV): How much revenue does the average customer generate for your business over their entire relationship with you? Comparing LTV to CAC gives you a clear picture of profitability. A healthy ratio is generally 3:1 or higher.
• Marketing Qualified Leads (MQLs): Don’t treat all leads the same. MQLs are those who have shown a higher level of engagement and are more likely to convert. Focusing on MQLs improves sales team efficiency and ROI.

Tools like Google Analytics, integrated with your Customer Relationship Management (CRM) system, are essential for tracking these metrics. Many CRM platforms now offer built-in marketing analytics, making it easier to connect marketing spend to sales results. Don’t be afraid to start small – even a simple spreadsheet can be a good starting point.

Ultimately, measuring marketing success isn’t about complex calculations; it’s about understanding whether your marketing investments are generating a positive return. By focusing on these core metrics, you’ll be well-positioned to make data-driven decisions and maximise your marketing profitability in the years ahead. Your next step should be to identify your current CAC and LTV – these two numbers will give you the clearest picture of your marketing performance.