How to work out...what's working. The marketing metrics that matter for small businesses.

If you run a small business, chances are you're juggling a lot - and marketing often feels like a guessing game. Are your ads working? Is your content converting? Are you seeing a positive Return on Investment from your efforts?

Here’s the truth: there is an old phrase: ’what gets measured gets managed’ - and that means it stands a chance of getting improved.

If you're not tracking your marketing performance, you're flying blind, and possibly wasting money and certainly wasting time. 

The good news? 

You don't need a degree in data or marketing to take control and turn your budget and time into customers and sales.

This blog post will walk you through the 7 marketing metrics every small business should track, how to measure them, and what to do if they’re underperforming.

1. Customer Acquisition Cost (CAC)

What is it? How much it costs you to gain one new customer.

How it is calculated: 

Total Marketing Spend ÷ Number of New Customers = £CAC

Why it matters: If it costs more to get customers than they bring in, your business model isn’t sustainable in the long run.

How to improve it: Target better leads (know your audience!), cut ad waste that isn’t generating for you, and increase conversion rates.

2. Customer Lifetime Value (CLV)

What is it? The total revenue you can expect from one customer over the entire time they do business with you.

How it is calculated: 

(Average Purchase Value × Purchase Frequency) × Customer Lifespan

Why it matters: This helps you determine how much you can spend on marketing and still stay profitable.

How to improve it: Focus on retention, upsells, and customer experience.

3. Conversion Rate (CVR)

What is it? The percentage of website visitors or leads who take a desired action (e.g. make a purchase, fill out a form).

How it is calculated: 

(Conversions ÷ Visitors) × 100

Why it matters: This tells you how well your website, content, or campaigns are turning interest into action.

How to improve it: A/B test your landing pages (e.g. more than 1 version and see which works best), use stronger Call To Actions (CTAs), and streamline your forms.

4. Return on Investment (ROI)

What is it? The revenue your marketing generates compared to what you spend.

How it is calculated: 

(Revenue - Marketing Spend) ÷ Marketing Spend × 100

Why it matters: It’s the ultimate performance scorecard. If your ROI is negative, something’s not working.

How to improve it: Stop low-performing campaigns and double down on those delivering returns.

5. Website Traffic & Sources

What is it? How many people visit your site and where they come from (e.g. social, search, direct, referral).

Why it matters: If you know where your traffic comes from, you can focus on what’s working and cut what’s not.

How to track this: 

This is straightforward. Start with Google Analytics, or any tools within your website providers platform. Both are free and offer great insight into what’s going on. Examine your traffic volumes and sources in particular.

How to improve it: Improve your Search Engine Optimisation (SEO) to help your website get found, invest in strong content, and promote across the right channels.

6. Engagement Rate (Social & Email)

What is it? The level of interaction with your content—likes, comments, shares, opens, and clicks.

How it is calculated: (Social):

(Likes + Comments + Shares) ÷ Followers × 100

How it is calculated: (Email):

> Click Rate = Clicks ÷ Opens × 100

Why it matters: High engagement signals that your content is resonating and building trust. Low engagement suggest it isn't.

How to improve it: Be relevant and authentic. Tell your story, your way. Use engagement tools including audience polls and questions to spark comments and conversations.

7. Lead-to-Customer Conversion Rate

What is it? The percentage of leads that become paying customers.

How it is calculated: 

(New Customers ÷ Leads) × 100

Why it matters: This shows how effective your sales funnel is (the sales funnel being the steps the customer takes to become a customers - how they build up to making a purchase from you).

How to improve it: Strengthen your follow-up, build trust earlier in the sales funnel, and test different offers.

A final word. How to get started?

Start by focusing on 3–5 of these metrics based on where your business is today. Set monthly goals, track performance, and adjust as needed. The businesses that measure and adapt are the ones that grow.

Want a deeper dive?

👉 Subscribe now to get our FREE upcoming Small Business Marketing Metrics Playbook — packed with templates, cheat sheets, and real-world examples.

Need help turning your data into results?

Let GrowthBox UnBoxed show you how. Book a free marketing consultation today.