Pumping millions into marketing may bring in leads, but converting leads into sales is the most challenging task. As per stats, the lead conversion rate average across all industries is just 31%.
No company wants to waste more than two-thirds of lead generation resources simply. That’s why you need to revamp the current lead generation tactics. Read on to understand what lead conversion rate is and how to increase lead conversion rates using advanced ways.
Also Read: 5 Common Customer Problems And How To Solve Them
What is Lead Conversion Rate?
Lead conversion rate is a Key Performance Indicator (KPI) that shows a business’s ability to convert leads into sales. It is considered one of the most critical metrics to drive the results of a sales team. Check out the lead conversion rate formula:
Lead Conversion Rate = (Total Number of Leads÷Number of Leads Converted)×100
5 Tips to Optimize Your Lead Conversion Process
As the competition across all markets is getting heated up, an effective conversion tactic is needed more than ever before. Check out five lead conversion strategies for your company:
1. Implement Lead Scoring
The first step in the lead conversion process is lead scoring. It is the process of giving a score to leads based on their interest in buying the product. Here are some of the critical factors that you must consider for scoring the leads:
- Demographic information, such as job title and location.
- Actions taken by the lead, such as website visits, ad clicks, etc.
- Purchasing power of the lead.
- Source of the lead.
Remember, time is the most invaluable asset of your sales time. First of all, allocate the leads with the highest scores so executives can call them promptly to improve the conversion rates.
2. Showcase Testimonials
Most customers trust only businesses with positive customer experiences. Therefore, if your clients post reviews about your brand on social media, feel free to embed them on your website. You can even consider performing dedicated campaigns to ramp up customer ratings and reviews.
For example, many software companies run review campaigns on trusted platforms like G2 by incentivizing those who post reviews. As a result, the brand’s ratings skyrocket within days. This creates a feeling of brand trust among the potential clients, which may lead to conversion.
3. Track the Metrics
Figure out what exactly you want from the sales team. Do you want to improve the response speed to increase conversion rates? Or, perhaps you may want to convince the leads to attend a webinar for conversion. Fix a common goal and set the Key Performance Indicators (KPIs) to measure the level of success. Some of the most common metrics are:
- Cost-per-lead: It refers to the amount spent in marketing to bring in leads for a company. Try to keep it to a minimum.
- Sales cycle length: This is the total time taken to close the sale after initiating contact with the lead. You must always shorten the sales cycle, as customers are more likely to lose interest in a product as time passes.
- Follow-up response rate: This refers to the rate of response of your executives to customers’ follow-up queries. Ideally, you must make it 100%.
- Engagement Rate: The rate at which customers open sales messages is called engagement rate. You must make it as high as possible to make sure that the client notes every message.
Simply setting up metrics is not enough. Create a system where all the executives report the metrics daily. Keep a close eye on all these metrics to ensure that your team is on the right track.
4. Set Up Lead Conversion Funnel
Outlining a lead conversion funnel can optimize your nurturing process. It helps you to track all leads on the go and detect the points when leads usually get stuck. You can identify and fix such bottlenecks earlier to close sales faster.
Too many follow-ups may create an unprofessional feeling. When you track all lead status effectively through a funnel, you will know when to interfere to avoid losing the deal. Such an informed follow-up approach will help you to convert leads at an increased rate.
5. Utilize Lead Management Software
The absence of effective lead tracking software is what prevents many companies from improving conversion rates. Even proper CRM software can do the entire job for you. Onstro CRM is a specialized software that can automate the lead-capturing process to ensure no prospect is missed. It lets you even segment the leads based on their demographics, sources, etc., for better targeting.
Conclusion
Bringing in leads is indeed a tough task, but closing them is the toughest. It requires a well-structured approach with regular tracking. That’s exactly where you need a dedicated software solution.
Onstro CRM is an all-in-one business software that helps you optimize your lead conversion process. You can set up custom lead conversion pipelines to track the status of all your prospects from the initial point of contact to closing. It lets you set priorities and deadlines for handling your most potential clients. Contact us now!
