Do you (really) know where your customers come from?
(It matters more than you think)
For many small businesses, marketing can feel like a juggling act. There’s never enough time, money or energy to do everything so it’s tempting to spread efforts across lots of different channels and hope something works. But there’s a simple question that can make all the difference:
“Where do my customers actually come from?”
Understanding how people find you is one of the most powerful – and cost-effective – tools you have to maintain or grow your business. As a small business owner, I’d be willing to bet that you do have a fair idea of how you acquire new clients but do you actually make a note of it? And do you reflect or analyse that information ever? (I do know one individual who keeps a spreadsheet of all his networking activities, the costs and the leads he gets from them but I think, as a small business owner, he’s probably the exception!)
Why it matters
There are so many reasons that understanding this matters, both from a practical point of view to a more strategic one. I think these are perhaps the most compelling reasons:
Spend your budget wisely –
When you know which channels (Google search, social media, referrals, networking events etc) actually bring you business, you can invest more in what works instead of spreading yourself too thin.
Avoid wasted effort –
Many small businesses pour time into marketing activities that don’t deliver. Tracking your customer sources helps you avoid this trap.
Get to know your customers better –
The way customers first discover you can reveal a lot about who they are, what they value, who influences them and how they like to buy. Not only is this valuable information in turning them in to repeat or regular customers but there’s a more than fair chance potential new customers will respond to similar triggers. This knowledge is power!
How to find out
You don’t need a big budget or fancy software. Start small:
Ask directly –
A simple “How did you hear about us?” can give you valuable insights. (Remember, even though you met someone at a networking event, perhaps, they may well have been following you on LinkedIn prior to that and the in person meeting was just the catalyst that nudged them into becoming a customer. Every customer will have experienced a ‘journey’ to become your client – however short – but you may only be aware of that first personal contact. Never assume!)
Use free tools –
Google Analytics, social media insights and email reports all show where your traffic or enquiries come from. A simple spreadsheet to record some of this key data can be invaluable in tracking what is working for you, especially as you tweak or change things. (Read more about why it’s important to measure the right things – not just what you can – here.)
Look for patterns –
Even anecdotal evidence matters. If several people mention finding you through Facebook, note it down. Over time, you’ll spot trends. One of the marketer’s best skills is the ability to spot not just patterns but anomalies in patterns. If something happened differently to what was expected – either better or worse – that gives you something to investigate: what happened to cause it and can we repeat/avoid it happening again?
Knowledge really is power
Once you’ve got a good handle on where your existing customers came from and what they value about you, you can then turn that information into actionable improvements.
Refine your marketing –
If referrals are your strongest source, create a referral scheme. If search engines bring people in, invest a little in SEO. Double down on what is working for you.
Improve your customer experience –
If reviews are a key driver, encourage more happy customers to leave them – and always respond. (Word of mouth is still one of the most powerful influences, even in business-to-business marketing, and customer reviews are probably the next best thing).
Tailor your messaging –
When you know what grabbed the attention of your customers, you can echo that message across your marketing. Tailor your website or social content to match the questions and needs customers had when they first found you. (Remember, this might be different for different audiences so reflect on the audience/channel/message equation to make sure you’re saying the right things in the right places).
Spot hidden opportunities –
Sometimes a single LinkedIn post or local event delivers surprising results. Recognising this lets you repeat what brings you results. (Content like case studies, for example, can be a great opportunity to tell your story and showcase your abilities.)
Keep It Simple
You don’t need a complex dashboard. A basic spreadsheet, a notebook or notes in your CRM are enough: what matters is building a habit of asking, tracking and acting on what you find. The real value lies not in collecting data for its own sake, but in taking action to do more of what works. (Block out a little regular time in your diary to do this if you need to you; it will remind you to reflect on your business goals and progress once in a while, too!)
Final Thought
Small businesses often think marketing measurement is only for “big companies” but in reality it’s even more valuable when resources are limited. By understanding where your customers come from, you can make smarter choices, stretch your budget further and build stronger relationships with the people who matter most.
(If this has been useful, skip on to my next blog all about how to retain your customers once you have them.)