Welcome to the Metric of the Week. This week we’ll be discussing ‘Sales by Lead Source.’
What is the metric?
It’s important to understand where your sales are coming from.
In general, you should focus on getting more sales from the most proven lead and traffic sources. On the other hand, it’s good to experiment to find new lead and traffic sources to boost profits and minimize risk.
Why should you care?
If all, or the majority, of your sales are coming from one lead source, your business could be at risk. For example, many businesses who received a majority of their leads from Yellow Page advertising, were hard-hit when Yellow Page usage declined.
By diversifying your lead sources, you minimize risk in your company.
What does it look like?
Below is a sample Sales by Lead Source chart.
How can you positively affect this metric?
Experiment with different lead sources. Online there are multiple lead sources like pay per click advertising, native advertising, social media marketing, etc. Offline, there are also multiple sources such as cold calling, cold emailing, trade shows, sponsorships, etc.
Track the results of each of your new lead sources, and improve on your strategies/tactics for those lead sources that show promise.
Soon, you’ll have a more diversified source of leads which will increase sales and profits, and lower the risk profile of your company.