Phil Risher explains two ways to measure if your marketing actually works. Track your return on ad spend each month: if you spend $2,000, know exactly how much revenue came back. Or calculate customer acquisition cost by dividing total marketing spend by new customers acquired.
Your marketing is not just an expense line item, okay? You're spending money to grow your business, and you need to know that when you spend money on marketing, you're growing your business. You're not just sitting on meetings and spending money on marketing just 'cause you feel like you should. You're doing it to grow your business. So how do you make sure that you're actually making money from what you're spending? There's two ways. One, if you're spending money on ads, make sure you have return on ad spend reporting every single month. I spent $2,000, I got $10,000 back. Cool. Number two, track your new customers in your CRM. In your CRM, there's a report that will show created date, and you can filter that down by how many new customers were created in that date. Let's say you spent $10,000 on marketing and you got 10 new customers. That means it's $1,000 to get a new customer coming into your business. It's pretty easy to see, you're just not looking in the right place.
