Tracking Categories in Xero are an often underused feature of the Xero software by smaller businesses, but can be very powerful if used for tracking marketing activities with Connectably.
Their purpose is originally intended by Xero that they be used to see how different areas of your business are performing (such as departments, cost centres, or locations), but for smaller businesses, like those using Connectably, we can use the functionality to track our marketing activities and spend versus sales and profit performance that comes from that marketing activity.
This way, when you run the 'Tracking Summary' report in Xero it will help you make proactive business decisions about future marketing activities, based on what marketing activities have led to what revenue levels in a particular period.
Tracking Categories: Practicalities:
In Xero, you can have two active tracking categories, and up to 100 tracking options for each tracking category. A tracking category needs at least one tracking option to assign tracking to a transaction, or a contact.
In Connectably, there is a Tag Category automatically set up for you called 'Tracking' in which there is a sub-category called 'Lead Source'. This is pre-populated with 20 lead sources that you can either keep and use, or edit and add to or remove from. Remember Xero allows up to 100 x tracking options for a tracking category, so up to that many tags can be added to the 'Lead Source' sub-category.
When you're adding contacts to your system, try to form a habit of associating where they've come from by tagging them with a lead source - whether you're entering the contacts manually on to the system, or applying a tag to the new contact creation via Zapier or a native Connectably web form.
In the contact record in Xero, when you've assigned this lead source tag to the contact record, it updates in the contact record and becomes associated with sales made against that contact - see the 'Financial Details' of the contact record for more:
Wherever you update the names of the lead sources (Xero: tracking options), whether in Connectably or in Xero, the Connectably Xero integration automatically updates the other system with the changes.