Why Your Gut Feeling is Costing You Money
I’ve sat down with hundreds of business owners from Chermside to Logan, and almost all of them have the same frustration: "I’m spending money on marketing, but I have no idea if it’s actually working."
Most people run their business based on a gut feeling. They think the radio ad is working because their nephew heard it. They think their website is fine because it looks nice on their laptop. But gut feelings don't pay the mortgage.
In the marketing world, people call this "data-driven decision making." To you, it should just be called "not wasting your hard-earned cash." It’s about looking at the cold, hard facts to see exactly where your customers are coming from and why they are (or aren't) picking up the phone to call you.
The Story of a Brisbane Electrician Who Doubled His Enquiries
Let’s look at a real-world example. We worked with a sparky based in Coorparoo. When he came to us, he was spending $3,000 a month on Google ads and another $1,000 on social media. He was busy, but he wasn't making a profit. He was stressed, tired, and felt like he was throwing money into a black hole.
He told me, "I think the Facebook ads are great because I get lots of likes and comments."
When we actually looked at his numbers, we found something shocking. He had received 400 "likes" on his posts, but those likes had resulted in exactly zero booked jobs. Meanwhile, his Google ads were bringing in leads, but they were for small light-switch repairs that barely covered his travel time, rather than the lucrative switchboard upgrades he actually wanted.
By looking at the facts, he stopped chasing social media likes and moved that budget into a specific type of search ad. Within three months, his phone was ringing with the right kind of customers. He didn't need more traffic; he needed the right numbers to tell him where to spend his next dollar.
The Three Numbers That Actually Matter
Forget about technical reports that look like a NASA control room. As a business owner, you only need to care about three things:
1. Where did the lead come from?
If the phone rings, do you know if that person found you through a Google search, a Facebook ad, or a recommendation from a mate? If you don't know, you can't double down on what’s working.We use tools that record which ads lead to phone calls. It’s the only way to see which ads make money and which ones are just burning a hole in your pocket.
2. What are people doing on your website?
I see this all the time: a business owner spends $5,000 on a fancy new website, but nobody calls. Why? Usually, it’s because the website is confusing. Maybe the "Call Now" button doesn't work on an iPhone, or maybe people can't find your service area easily.Instead of guessing what's wrong, you can actually watch how people use your site. You can see where they get stuck and where they leave. It’s like standing over a customer's shoulder while they browse your shop—you see exactly what’s turning them off.
3. How much does it cost to get one customer?
If you spend $100 on ads and get one customer who spends $1,000, you’ve won. If you spend $100 and get a customer who spends $40, you’re going broke. You need to know your "cost per lead."How to Start Making Better Decisions Today
You don't need a degree in statistics to do this. You just need to stop ignoring the numbers. Here is a simple plan to get started:
Step 1: Fix Your Tracking
Before you spend another cent on ads, make sure you can track the results. This means having a system that tells you when a website visitor becomes a lead. If your "Contact Us" form doesn't send you a notification that tells you where that person came from, you’re flying blind.Step 2: Look at the "Path to Purchase"
People rarely buy the first time they see you. They might see an ad, check your reviews, look at your website, and then call you three days later. Understanding this journey helps you realise that even if an ad doesn't get an immediate sale, it might be the reason they called you later. It's about seeing the path customers take to buy from you so you don't accidentally turn off an ad that's actually helping.Step 3: Cut the Dead Wood
Every month, look at your marketing spend. If something isn't resulting in phone calls or bookings after 90 days, kill it. I don't care how "cool" it looks or if your competitors are doing it. If it doesn't make the phone ring, it's a waste of money.Common Traps to Avoid
I’ve seen plenty of Brisbane business owners fall into these traps. Don't be one of them:
The "Brand Awareness" Myth: If a marketing agency tells you they are focusing on "brand awareness" but can't show you any new customers, they are taking you for a ride. Small businesses need sales, not just "awareness." Measuring the Wrong Things: Likes, shares, and website hits are "vanity metrics." They make you feel good but they don't buy groceries. Focus on enquiries and sales.
- Quitting Too Early: Data takes time to collect. Don't turn off an ad after two days because nobody called. You usually need at least 30 days of data to see a real pattern.
What Will This Cost You?
Setting up proper tracking usually costs a bit of time or a small upfront fee if you hire a pro. However, it’s almost always cheaper than the money you are currently wasting on bad marketing.
I’ve seen businesses save $2,000 a month just by identifying one "black hole" ad campaign that wasn't working. That’s $24,000 a year back in their pocket.
The Bottom Line
Marketing isn't a magic trick and it shouldn't be a gamble. It's an investment. And like any investment, you need to look at the numbers to see if it's paying off.
If you're tired of wondering if your marketing is actually doing anything, it’s time to stop guessing. Look at the data, see what’s making the phone ring, and do more of that. It’s the fastest way to grow your business without losing your mind.
Want to know exactly which parts of your marketing are making money?
At Local Marketing Group, we help Brisbane business owners stop the guesswork. We set up the tracking, look at the numbers, and tell you exactly what’s working and what’s a waste of cash.
Contact us today for a straight-talking chat about how to get more customers for your business.