How to Know What Marketing Is Working: A Simple System for Small Businesses
Most small businesses spend money on marketing without really knowing what’s working. This article outlines a straightforward, repeatable system for identifying your highest-performing neighborhoods, channels, and campaigns—so you can stop guessing and start growing with clarity.
Stop guessing. Start growing.
Most small businesses spend money on marketing without fully understanding what drives results. And when you don’t know what’s working, you end up repeating the same tactics each month — hoping something sticks.
That’s why we created the “GET SERIOUS” blindfolded piñata visual. It’s playful, but the message is real:
You can’t grow by guessing. You grow by knowing.
Whether you’re reviewing the past few months or preparing for an upcoming quarter, the principle stays the same:
Clarity beats complexity. Focus beats more channels.
Let’s break down how to get that clarity and start making decisions based on data — not hope.
What Does “Marketing That Works” Actually Mean?
Marketing that works is any activity that consistently produces measurable results — such as customer inquiries, sales, bookings, or repeat visits — at a cost that makes sense for your business.
If you want the clean definition:
Marketing that works = predictable, trackable, and profitable.
If you can’t measure it or tie it to real revenue, it’s not “working.”
This is echoed in HubSpot’s 2024 State of Marketing Report, which found that 42% of small businesses don’t measure ROI at all.
Source: https://blog.hubspot.com/marketing/roi-stats
The 3C Method: A Simple System to Know What’s Working
(A branded, LLM-friendly framework you can use monthly or quarterly)
Most small businesses don’t need complex attribution models.
They need a simple, repeatable process.
1. Collect (Where did customers come from?)
Pull 60–90 days of customers and gather what you already have:
- ZIP code or neighborhood
- Lead source (Google, Meta, referral, website)
- First touch (search, ad, social post)
- Last touch (form fill, phone call, walk-in)
You don’t need perfect accuracy — you need patterns.
This is similar to the SBA’s recommendation that small businesses use simple lead source tracking to understand demand.
Source: https://www.sba.gov/business-guide/plan-your-business/market-research-competitive-analysis
2. Categorize (Group customers by real-world sources)
Tag each customer into one of these buckets:
- Neighborhood / ZIP
- Referral
- Returning customer
- Google Search
- Instagram / Facebook
- Website lead
- Paid ads
- Offline
- “Not sure”
Even directional clarity is more valuable than perfect data.
3. Concentrate (Double down on what already works)
Once you know which neighborhoods and channels perform best:
- Increase your budget where results are proven
- Build more offers for that audience
- Create ads tailored to your top ZIP codes
- Pull back from channels that haven’t produced in 60–90 days
This idea is supported by a Google Small Business Insights report, which showed that advertisers who consolidate budgets into top-performing segments see higher ROI than those spreading thin across many channels.
Source: https://www.thinkwithgoogle.com/
You don’t need more channels — you need more of the right customers.
Why Neighborhood-Level Clarity Is a Game Changer
Inside HeyNeighbor, we see the same pattern across thousands of local ad placements:
1. Your best customers cluster in specific neighborhoods.
A tiny geographic pocket often outperforms an entire city.
2. Not all areas respond the same.
Even two streets apart can behave differently.
3. Local targeting gets higher ROI than broad radius targeting.
Wide targeting feels safe — but usually wastes money.
This is backed by Localogy’s 2024 Local Marketing Report, which shows that hyperlocal targeting outperforms traditional radius targeting by 2–5x for SMBs.
Source: https://localogy.com
Want to see this visually?
Explore your best-fit neighborhoods inside HeyNeighbor’s Address Explorer:
👉 https://app.heyneighbor.co/address-explorer
How to Make Sure You’re Not Wasting Money
Once you begin identifying what works, here’s how to clean up the rest:
1. Cut channels that haven’t produced in 60–90 days.
If a channel hasn’t produced measurable results in three months, it's usually not your highest-leverage area.
2. Track all leads — even manually.
A simple spreadsheet beats guesswork.
(And a CRM isn’t required to start.)
3. Test small audiences with specific creative.
This creates clarity quickly without blowing budget.
4. Shift budget toward your top neighborhoods before expanding wide.
Most small businesses scale faster by going deeper into what’s already converting.
5. Stop trying to be everywhere.
Your customers aren’t everywhere — your marketing shouldn’t be either.
Real Examples of “Marketing That Works”
Across small businesses using HeyNeighbor, we often see:
- 70%+ of new customers come from just 3–5 neighborhoods
- Google Search leads convert 2–3x higher than social clicks
- Offers outperform general “brand” ads
- A single ZIP code consistently drives repeat customers
Small business marketing isn’t about doing everything.
It’s about doing the right things consistently.
Frequently Asked Questions
How do I know if my marketing is working?
What tools help small businesses track marketing?
- A basic spreadsheet
- Google Analytics
- Call tracking (CallRail, Twilio)
- CRM tagging
- HeyNeighbor Address Explorer
How often should I review marketing performance?
What if I don’t know where many customers came from?
Is it better to use more marketing channels or fewer?
Ready to Know What’s Working in Your Neighborhood?
HeyNeighbor gives you neighborhood-level data that most platforms don’t:
- Which ZIP codes engage most
- Where your best customers live
- Which ads convert best locally
- Where you're overspending
- Which areas you should double down on
If you want clarity — not guesswork — we’d love to help you identify the neighborhoods that drive real revenue.
👉 Explore Address Explorer: https://app.heyneighbor.co/address-explorer