A conversion rate is defined as the percentage of visitors coming to a website and performing a certain action or conversion.
This metric helps you assess your sales team’s efficiency to convert new leads into customers.
Leads are nothing but potential customers. If you are able to understand the value of every lead and the number that can be converted into customers, you can easily establish the number of leads needed to be generated in order to sustain and grow your business
Whether you are a professional or just starting your own venture, understanding the conversion rate is always crucial to your company’s growth.
It guides you to improve your website’s performance in order to attract more sales.
Your aim should always be to increase – your conversion rate and the number of visitors.
Normally a good conversion rate is usually between 2% to 5 %.
There are two main types of conversions a website observes –
1. Micro Conversions
Signing up for an email list is an example of a micro-conversion. It might not make a sale but it definitely pushes a prospect further in the process.
2. Macro Conversions
If an action is big, like purchasing a service, the action is a macro conversion. This type of conversion is the end goal of the sales process.
How to Calculate Sales Conversion Rate
Knowing how a sales conversion rate is calculated is key to directing your marketing efforts more sensibly and ensuring returns.
It is also needed to determine what a new lead is worth and is the first step in understanding how your sales funnel is performing.
The conversion rate can be calculated once you have defined what conversions you want to track.
Conversion Rate = Number of Conversions/Total Number of Visitors
The conversion of a prospect to lead and lead to a customer is called Sales Conversion and constitutes multiple components.
The Sales Funnel
A concept that helps you visualize and understand the flow through which a potential customer lands on your site and then takes a desired action (i.e. converts).
How Does a Sales Funnel Function?
The moment of awareness rests at the top of the funnel i.e. the point of entry.
Once prospects enter the funnel, multiple steps can be taken to continue the way towards the bottom.
Each step taken downwards is a different stage of the funnel, which leads the prospect to the narrowest point i.e. the point of decision—also the point of conversion.
How to Increase Sales?
- Begin by evaluating the quality of leads:
- Identify the reasons people make their buying decision for various products/services, and then create the campaigns to hit those points.
- Support through Live Chat: To ensure you address the queries of customers faster, live chat is the easiest way forward.
- Follow-Ups: Setting up an automated email campaign helps, You may retarget your target audience with Ads, YouTube, Facebook Ads. Your content may include testimonials, education, and any offers.
- Use SMS campaigns: SMS are still regarded as private lines. The conversation rate from these alerts is always more as compared to emails or in-app notifications.”
- Infuse the ‘fear of missing out’ aspect: Convey that you’re moving on
- Include a CTA – A clear and optimized call to action is always crucial to boost the sales conversion rate. Make sure it comes across as organic and beneficial to your audience
- Referrals: Referrals are always a nice way to get more customers.
- Gratitude: Don’t forget to simply say thank you!
Your sales funnel aims to lead customers on a step-by-step journey from learning about your product to purchasing it. Therefore, it is important to tailor your content according to the customer touchpoint(s).
Role of a CRM in Generating Sales
An effective CRM software not only assists with sales and marketing but every possible line of business, from customer service to business development in order to manage customer relationships. CRM today is being profoundly used to convert leads to sales.
It helps by providing complete information of customers and potential customers to a business. Further, organizing all the details in one place, is easily accessible and even automates the repetitive chores, thereby improving the efficiency of the employees.
7 Core Strategies to Improve the Sales Conversion Rate
And although we salespeople strive to keep every conversation going, there is a lot more to it. Enlisted below are strategies that you can utilize to improve sales productivity and conversion rates.
1. Work with the Right Leads
Work with the ‘Right’ Leads so that you are ‘Left’ with nothing, but the trust and goodwill of the leads. Targeting and catering to the right leads is productive and beneficial from a long-term business standpoint.
We urge you to thoroughly ‘know’ your lead/potential customer before proceeding with the following stages of sales.
2. Tailor them, Experiences Swift
Not abiding by ‘one-size-fits-all’ can bring you good in so many unexpected ways. Personalizing your support as per the unique customer characteristics can help establish a strong brand-customer relationship and might even influence the lead to convert.
3. Video Learning goes a long way!
A majority of sales personnel have reported that selling through video increased user understanding of their product/service, and which eventually led to an increase in sales.
Therefore, educating through videos is time-efficient, entertaining, and leads to more engagement.
Further, videos can be rightly embedded in the virtual demo sessions as well, so you can harness its goodness while your lead absorbs the right amount of information, in a regulated manner.
4. Use a CRM Solution to Encourage Self-Serve Regarding Queries
CRMs have evolved manifold, over the years and today are serving businesses and their customers, in the friendliest way possible.
Empowering your leads and customers to help themselves, can be quite resourceful. They can be persuaded to fetch solutions to queries, through your sales CRM software.
5. Stay in Touch With the Lead at Every Touchpoint
You have to be omnipresent no matter what! Staying agile at every touchpoint optimizes your business in unknowing ways.
Being a part of the customer journey and interaction over any given platform – social media, chat, email, phone call helps impart an Omni customer experience which eventually leads to attracting more leads.
6. Keep your Brand’s Website well-optimized
Your website is the window to every possibility and the opportunity to sell. Build and maintain a website with users want to hang out at, since the more time they spend on your website, the more knowledge they acquire which then leads to more sales.
The webpage experience, user interactivity, and visual stability must be revised frequently to stay on top of the game.
7. Follow-up Rigorously yet Subtly
As salespeople, you might already know The Subtle Art Of Following Up (which worsens in certain situations). Therefore, mastering the sales follow-up can significantly improve business results, because the stage where you give up, can rightly be utilized to crack the deal or convert the lead.
We urge you to provide value with each follow-up and use not one, but varied methods of getting in touch – emails, calls, greeting cards, merchandise, and others. Let your leads know that they are important and hold prominence.