Quantify Everything: Use Numbers, Not Hunches, to Guide Your Next Move

Medium - Requires some preparation Recommended

Two friends run a local coffee shop with a side-hustle bakery. They try everything to draw a crowd: flyers, digital ads, word-of-mouth discounts, and charity events. For months, they guess which worked, adjusting on gut feeling and scattered social media likes. One evening, one friend takes out a notepad and adds up data: how many buyers came from Facebook? How many walked in after the town fair? Turns out most of their regulars—those who came back week after week—were people who first saw their stall at the charity run, not the hundreds from the flyer drop or expensive Instagram ads.

With this data, the shop owners direct their budget (and limited energy) towards the events that create loyal customers. As they pivot their approach, they watch their repeat business numbers rise—even when absolute new foot traffic dips. “I’m surprised by what ended up working for us,” one admits, “but the numbers don’t lie.”

Business analysts would call this ‘data-driven decision making’: building habits of concrete measurement over hunches. In consumer psychology, action without feedback is a setup for disappointment—using numbers helps correct course and build confidence.

Start tracking the true cost and outcome of every growth experiment or channel you try, from paid ads to word-of-mouth to random community events, and don’t skip the channels that feel fuzzy or less familiar. Write down how much each sign-up, sale, or repeat user truly costs and what they’re worth over time; bring these numbers together monthly to see where you might want to invest more—or pull back. Let the numbers, not habits or guesswork, guide your biggest allocation decisions. Try tracking with a spreadsheet or an app this week, and see what new insights emerge when you stare the facts in the face.

What You'll Achieve

Greater objectivity, reduced wasted effort, and higher probability of scaling up the best strategies; become more resilient and less emotionally attached to tactics that don’t serve your goals.

Anchor Channel Decisions in Cost, Conversion, and Value Data

1

Estimate cost to acquire a customer for each channel.

For every marketing test, record expenses divided by number of new sign-ups or buyers. Don’t skip channels you’re less familiar with.

2

Track customer lifetime value consistently.

Record repeat purchase rates and long-term revenue for different segments or sources of customers.

3

Regularly revisit your data and be ready to pivot.

Set a re-evaluation schedule (weekly or monthly) to compare numbers, adjust budgets, and focus on what’s really working.

Reflection Questions

  • When was the last time I changed my approach because of what my data actually told me?
  • Am I confident I know the real cost and returns from each of my growth channels?
  • How comfortable am I with shifting direction when the numbers contradict my instincts?
  • What needs to change in my routine to review these numbers more frequently?

Personalization Tips

  • A tutoring center compares Facebook ad costs to referrals from a local school’s newsletter.
  • A baker tallies repeat buyers from Instagram DMs versus pop-up events.
  • A new YouTube creator tracks the number of viewers who become subscribers after each different promotion.
Traction: A Startup Guide to Getting Customers
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Traction: A Startup Guide to Getting Customers

Gabriel Weinberg
Insight 7 of 8

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