Track leads by source. Website forms, calls, walk-ins, referrals, social platforms, events, and advertising should be identified whenever practical.
Next, track conversion rate. A campaign that produces many low-quality leads may be less valuable than one that produces fewer leads with a higher purchase rate. Conversion should be measured at meaningful stages, such as inquiry to appointment or proposal to sale.
Customer acquisition cost combines advertising and related campaign costs divided by the number of new customers. Use the same method over time.
Average transaction value and gross margin are necessary because revenue alone can mislead. A campaign may increase sales while attracting heavily discounted or low-margin business.
Repeat purchase rate and customer lifetime value help evaluate whether marketing creates durable relationships.
Response time is another important measure. Leads lose value when calls and messages are not handled promptly. Performance may improve without spending more simply by strengthening follow-up.
Owners should review metrics by channel, campaign, and customer segment. The purpose is not to create a complicated dashboard. It is to identify what should be expanded, changed, or stopped.
Eric Kuvykin
Publisher and editorial director covering payments, fintech, merchant services, banking, AI, technology and operating strategy for small and medium-sized businesses.
