Today the customer has more options to choose from than ever before. As a result, customers nowadays research more thoroughly about the products or services they want to buy and compare available options extensively. This might cause your leads to leaking from your sales funnel.
You might be attracting the right set of people, but somehow, they aren’t converting into customers. This might have multiple reasons, and here, we discuss how you can better convert your target audience into your customers.
But before we go there, let’s cover some basics.
What is a sales funnel?
A sales funnel is a marketing tool that helps you visualize your entire sales process right from where your target audience is welcomed till they are turned to prospects and finally converted to customers.
Analyzing your sales funnel might assist you in identifying the funnel’s leaks – the points when prospects abandon the funnel and never convert.
What are the sales funnel stages?
A sales funnel consists of four main stages as per the AIDA model. They are:
- Awareness: It involves letting your target audience know about your business
- Interest: it involves generating leads that know about your business by engaging with them.
- Desire: Educating the interested leads and explaining to them why to go for your product
- Action: Converting the leads into customers
However, these stages may increase based on the ticket size of your products, technicality of your product, the product life cycle and many more things.
It is important to understand the sales funnel before you move ahead in optimizing its stage.
What is a sales lead conversion rate?
Lead conversion rate or sales conversion rate is the percentage of qualifying leads that result in actual customers for a firm. Most companies use only qualified leads while calculating the conversion rate. A qualified lead is a potential consumer who has previously indicated an interest in buying a company’s goods or services.
Sales Lead Conversion Rate
= Total Number Of Qualified Leads That Convert Into Sales * 100
Total Number Of Qualified Leads
It’s worth noting that calculating the lead-to-customer conversion rate has a lot of potential for adaptability based on the requirements of your business. To consider a qualified lead and what exactly to be defined as a conversion is something the company must decide firsthand.
Why is sales lead conversion rate important?
Conversion is critical to any digital marketing strategy. It helps you to get the most out of every dollar spent on PPC by locating the perfect spot that tries to persuade the greatest number of your prospects to take action and convert to customers.
Read on to find out how sales conversion rates can be improved for your business.
How to increase conversion rate in sales?
Some of the ways through which you can improve your sales conversion rate are as follows:
- Optimize your website
- Build social proof across channels
- Use social media ads
- Create a compelling landing page
- Leverage On-Site Messages
- Curate personalized emails
Optimize your website
Prospects often visit your business’s website to know more about the product specifications, details, etc. Optimize your website with the following tips:
- Well-described product/ service pages highlighting your expertise
- Address common questions that the customer might have with FAQs
- Add compelling call-to-actions(CTAs)
- Include pictures, case studies or videos to showcase your products/services
Build social proof across channels
Prospects are more confident in purchasing your product if they are convinced of the credibility and reliability of your business. Social proof can be a great tool to convince your prospects as they see other people use your product/ service. Some of the sites to build social proof include:
- Social media
- Email marketing
- Paid ads
Read more on how to build social proof for your business in this article.
Use social media ads.
Nowadays, most customers also visit the social media page of a business to understand how well they maintain a relationship with their clients and their reputation as a business. Therefore, it is important to retarget and engage your prospects through social media ads.
Create a compelling landing page
A landing page is where your customers land up after clicking on your ads. It is important to optimize your landing page so you can usually push visitors to perform a certain action, such as completing a purchase, signing up for a newsletter, or contacting the company that can help them move further through the sales funnel process.
Create a compelling landing page by incorporating great copywriting, thoughtful design, clear CTA and rigorous testing.
Leverage On-Site Messages
On-site messages are a great way to engage your prospects. For example, you can have on-site messages on the blogs, the products page or the checkout page to trigger a purchase action. Having these pop ups with discounts or offers can prevent your prospects from departing your site.
Curate personalized emails
It is best to engage prospects who have reached the consideration stage in the sales funnel with email marketing as they are eager to learn more about your products/services. Personalize your emails to advertise your items through a creative technique to promote products, add persuasive CTAs in your emails, incorporate social proof, and educate them along the way to convert into customers.
Read more on what are the four types of marketing email in this article.
What is a good sales conversion rate?
Usually, the conversion rate for a business lies between 2%-5%, but it is heavily dependent on your industry and the ticket size you sell.
As your leads travel through the four stages of your sales funnel in their buyer’s journey, you’ll observe that Some people may rapidly purchase the product whereas you may have to persuade others for months before they make a purchase. By understanding how your prospects progress through your sales funnel, you can utilize the data for improved conversions.
If you need any help in implementing either of these strategies, we’re right here to help!
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