A recent study called "The State of Lead Conversion in Marketing and Sales" found that only 12% of marketing professionals are very happy with their ability to convert leads. That's a shockingly low number. The same study also says that the reason for this low satisfaction rate is that businesses find it hard to determine what is wrong with their current sales strategies.
Fortunately, when sales teams are equipped with the right tools and information, converting leads becomes much easier.
In this article, we'll discuss what a lead conversion rate is and how your business can improve this metric to boost sales.
The lead conversion rate, which is also known as the "lead-to-customer conversion rate," is a sales metric that measures how many leads become customers. This metric looks explicitly at qualified leads rather than all leads.
And it is a major sales KPI since it can assess the strength of your marketing efforts and sales techniques.
If you're finding qualified leads and you're able to turn them into paying customers, that's an excellent indicator of your business' strength. On the contrary, if you're finding qualified leads, but you're unable to turn them into paying customers, this can be indicative of weakness at some point in your operation.
When you work to improve your lead conversion rate, you'll naturally boost your sales, which is certainly a win.
Improving your lead conversion rate is important because it means you're closing more deals and making more money. Luckily, there are quite a few things you can do to improve your lead conversion rates and stop leaving money on the table.
Here are some things you can do to improve your lead conversion rate.
Since lead conversion rates only take qualified leads into consideration, it's crucial to get to know the leads themselves. Lead scoring is a great way to do this.
Lead scoring is a valuable digital technique that uses a variety of criteria to assess the value of your leads by analyzing their likelihood of turning into paying customers.
When you use a tool like Hubspot lead scoring software, you can create unbiased assessments to share across your sales team. Equipped with this information, it's easier to decide which leads to pour your time and resources into.
Another way to improve your lead conversion rate is to generate higher-quality leads with a powerful marketing strategy. Before you dive into marketing, you should ensure that your website is in check.
If you don't have an in-house design team, you should contact a designer or an agency to create the best product page for you. Your branding assets should resonate with your ideal buyer while also capturing the essence of your organization.
Making sure your messaging is appealing yet concise is also very important. Not sure where to start? We suggest using an AI writer tool. Of course, this copy might need a comb-over from a human to add a personal touch, but it's good for breaking through writer's block and getting some ideas out on paper.
Some other marketing techniques to consider include SEO, social media, content marketing, and influencer marketing. Do some experimenting to see what works for your brand and audience.
Email marketing is another great way to improve your lead conversion rate. Within your email marketing strategy, you can use different types of emails, such as product information, newsletters, discount coupons, a pre-sale of new products for premium customers, and more.
You must have a strategy for each campaign to best measure its impact, reach, investment, and revenue generated. Keep in mind that not all emails have the primary purpose of selling at the forefront, but selling should be an underlying goal across the board.
For example, newsletters are more informative, but in the background, there's typically the intention to sell your product in these emails. They can help warm your leads over time, but you should always include a call to action (CTA) for the recipients who are ready to move through the sales pipeline.
Lead conversion rate is just one of many KPIs in sales. To improve your lead conversion rate, you need to be aware of other data points to paint a complete picture and assess the success of your current sales efforts.
Some other lead conversion metrics that you should pay attention to include cost per lead, time to conversion, and win rates. When properly analyzed, data can tell a story that leads to actionable insights.
When you use Reverse ETL, you can sync your data across business tools and make it accessible to your teams for actionable insights. This will make it easier to use the data to optimize your sales strategies and improve your lead conversion rates.
Keeping your sensitive data private is very important. Digital “loss prevention” not only keeps your company’s data safe, but it prevents losing the trust of your leads.
A hacked account or device causes more than just a headache. It can bring down the entire network, causing a business to come to a screeching halt. That’s why, in our connected world, cybersecurity and data breach prevention are hot topics for every business owner and manager.
This is why you must implement proper precautions to stop lead information data breaches by putting advanced security against hackers in place. Software platforms like the one TSplus provides will make this job more manageable.
When your leads know that your company takes cybersecurity seriously, they know they can rely on you to keep their information safe.
With a bit of strategy and some hard work, you can improve your lead conversion rates. What it boils down to is finding qualified leads, providing them with the information they need to convert, and tracking your wins and losses along the way.
Making a point to understand the data and taking action based on your findings is a surefire way to improve your lead conversion rates.