How to know which marketing channels are generating sales?

To know which marketing channels generate sales, set up Google Analytics 4 and connect it to your CRM, then compare conversion rate, customer acquisition cost and ROI by channel. Apply an attribution model to credit the touchpoints correctly. GA4’s data-driven attribution assigns credit across the full journey rather than to the last click alone.

As a small business owner, you might often ask yourself:

1. “I’m active on Instagram, but is it actually bringing in customers?”
2. “I’m sending out weekly emails, but are they converting into sales?”
3. “I invest my time in blogging, but is it generating leads?”

If these questions resonate with you, you’re not alone! So many small business owners are asking these questions, trying to understand which marketing channels work, which are having real impact on their bottom line and resonate with their customers. Because knowing which of your marketing channels drive your highest quality of new visitors, return visitors, and visitors converting to leads and sales is crucial for allocating your marketing time, energy, and budget effectively.

If you’re keen to understand the role your own marketing channels are playing, and what content is truly resonating with your audience, join our online training program, The Marketing Review Room. It’s our 4-week “get started” program that teaches you the basics of knowing what’s happening in your marketing so you can be empowered to know exactly where to look, and how to understand the information in front of you to become more focused, more efficient, and far more confident in your marketing decisions.

The importance of multi-channel marketing

I spoke about this in a previous blog. Relying solely on one marketing channel will absolutely limit your reach and potential to connect with your audience. When you invest your time, effort, and money in marketing your business, consider these insights:

1. Google found that 95% of customers use more than one channel when making a purchasing decision,
2. A Salesforce survey revealed that 72% of consumers, and 89% of business buyers think brands should understand their unique needs and expectations across multiple channels. 
3. HubSpot reported that Email marketing has an average ROI of $36 for every $1 spent, yet if you don’t have top-of-funnel channels driving awareness how will you build your email list?

These insights speak to the importance of a multi-channel marketing approach. Your audience interacts with multiple platforms before deciding to engage with your business. The Next Web reported that “the average internet user spends 6 hours and 43 minutes online every day”. Some marketers use the rule of 7 touch points, and some use the rule of 30 touch points, but how many touch points do you actually need?

From a customer’s perspective, your need to be in front of your customer at the time they need you. Right time, right place.

Customer experience is a key component in what differentiates your brand, service, and products from your competitors. Clootrack found “81% of companies view customer experience as a competitive differentiator,” and “84% of companies that work to improve their customer experience report an increase in their revenue.” This makes sense. We’re living in a world where customers expect a hyper-personalised experience.

Remember, your audience interacts with multiple platforms before deciding to engage with your business and brand. It’s reported that the average touch points in a consumer buying journey can range from anywhere between 20 to 500+ touch points.

Your marketing data will help you understand where your customers are spending their time, the messages that resonate and where your opportunity touch points exist.

Why knowing your channels matters

Understanding which channels drive your best leads and sales allows you to optimize resource allocation by investing in the channels that yield the highest returns. It also helps you enhance customer journeys by tailoring experiences based on how customers interact with your brand. This leads to improved ROI, as you can focus on strategies that directly impact your bottom line.

Key touchpoints we’re seeing customers take before making a purchase include:

1. Customer education. Providing valuable information builds trust and positions you as an authority.
2. Product and service detail pages. Ensure these are informative and easy to navigate.
3. Social media engagement. Likes, comments, DMs, and shares help strengthen brand awareness and build community.
4. Online reviews & testimonials. Positive reviews and user-generated content build trust and influence purchase decisions.
5. SEO-optimised blog content. High-value blog posts improve discoverability and drive organic search traffic.
6. Free resources & lead magnets. Downloadable guides, checklists, and templates attract leads and grow your email list.
7. Weekly emails. Regular communication keeps your audience engaged.
8. Discovery calls (for service-based businesses). Personal interactions can significantly influence decision-making.
9. Ads – Meta and Google Ads. Targeted advertising can reach potential customers where they spend their time online.
10. Video content & masterclasses. Educational videos, Reels, and masterclasses help build connection and trust while explaining complicated, or complex ideas and topics.
11. Community groups (Facebook, Slack, LinkedIn). Spaces for potential customers to connect, ask questions, and engage with your brand.
12. Abandoned cart emails & retargeting. Follow-up emails and ads help recover potential customers who didn’t complete their purchase.
13. PR, podcasts & media features. Appearances on podcasts, industry publications, and media outlets expand reach, establish authority, and introduce your brand to new audiences.

I could talk about the many touch points that work for small businesses all day. But it comes down to what works for your business, your goals, and your marketing objectives.

Here’s a great example…

Adore Beauty, an Australian online cosmetics retailer. In 2024, Adore Beauty reported a 7% increase in revenue to $195.72 million and a net profit surge of 489% to $2.18 million. This growth was attributed to a resurgence in customer numbers, with 519,000 returning customers, up 5.8% year on year, and with a retention rate of 64.7%. CEO Tamalin Morton emphasises the importance of customer satisfaction and brand awareness, noting improved brand recognition among their target audience. Adore Beauty’s success demonstrates how a data-driven, multi-channel marketing strategy can significantly enhance customer engagement and drive sales.

Steps you can take to know your most effective marketing channels

1. Set Up Proper Tracking:
   • Google Analytics 4 (GA4): This tool provides insights into user behaviour across different channels, helping you identify where your high-quality leads originate.
   • Customer Relationship Management (CRM) Systems: Track interactions and sales data to see which channels lead to conversions.
2. Analyse Key Metrics:
   • Conversion Rates: Determine which channels have the highest lead-to-customer conversion rates.
   • Customer Acquisition Cost (CAC): Calculate the cost of acquiring a customer through each channel to assess cost-effectiveness.
   • Return on Investment (ROI): Measure the revenue generated from each channel relative to the investment made.
3. Implement Attribution Models:
   • First-Touch Attribution: Credits the initial interaction a customer has with your brand. These are your awareness (top-of-funnel) channels.
   • Last-Touch Attribution: Credits the final interaction before conversion.
   • Multi-Touch Attribution: Distributes credit across all interactions in the customer journey, providing a holistic view.
   • GA4 Data-Driven Attribution Model. Uses machine learning to analyse all touchpoints and dynamically assign credit based on each interaction’s real impact on conversion, offering a more accurate and nuanced understanding of your marketing performance.
4. Regularly Test, Learn & Optimise:
   • Continuously monitor performance of your key metrics to identify trends and shifts in customer behaviour.
   • Be prepared to reallocate resources, time, and effort to channels that demonstrate higher effectiveness.

The benefits of knowing your top marketing channels

By identifying and focusing on your most effective marketing channels, you can make your marketing instantly more impactful. Optimizing resource allocation allows you to invest more in the channels that yield the highest returns and have the greatest impact. Enhancing customer engagement becomes easier when you tailor your strategies to the platforms where your audience is most active.

Ultimately, this approach leads to increased sales and revenue by concentrating your efforts on the channels that directly contribute to your bottom line.

Understanding which marketing channels drive your best leads and sales (as well as awareness, consideration, and decision stages of your buyer’s journey) isn’t just beneficial, it’s essential. By leveraging the right marketing analytics tools and strategies, you can shift from uncertainty in your marketing, into have such clarity and confidence in your approach, knowing that what you’re doing is drive more sales.

Ensure your marketing efforts are both efficient and effective. AND remember, it’s not about being everywhere, it’s about being where it matters most to your audience.

If you’re ready to stop guessing and start knowing, Let’s chat, book a free call, and start making data-informed decisions for your business today!