Does this famous quote ring true?
"Half the money I spend on advertising is wasted; the trouble is I don't know which half."John Wanamaker
Tracking customer sources can be as simple or as complicated as you make it but to help out, we've got here a Downloadable Customer Tracking Form that you can print out and use to track how your customers came to be using your business.
What Customers Sources Should You Track?
- Friend / family
- Customer Reviews
- Facebook, Twitter, LinkedIn, Pinterest (or any other social media you use)
- Other online
- Physical presence (your building, your vehicles)
- Any other marketing or promotional activities your business does
A note about Customers Finding you Online
The internet is an amazing source of new customers, but it does complicate things…
With so many online platforms, you can't settle for customers telling you they found you via the "internet" or even "Google". You need to know more. With over 80% of all purchases starting with an online search (Nielsen research), chances are that yes, your customers did "find" you online. But how? Did they know your website? Did they search for your business name? Or, did they search for the type of service / product they were seeking and find something that led them to your business? We find that a great question to ask is;
"Did you see our customer reviews?"
This question is great because even if they didn't see your reviews, you've already let them know that you have positive customer reviews online, which tells them you have a great reputation (and gives them more confidence to go ahead with your business).
What do you do with this Information?
Once you know which marketing/advertising sources work best, you can increase those activities and potentially cut out costs (and time) on the others.
Please note though, to do this properly you should really also consider how profitable each customer is – both for their first transaction and over their lifetime. You also need to consider the cost (in terms of dollars and time) of each type of marketing.
If the customers' lifetime profitability is more than the cost to aquire them, you should definitely keep doing that marketing!
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