Every company wants to convert their leads. Many companies use metrics to measure the effectiveness of their lead generation strategies.
Are your company’s numbers up to industry standards? Are your sales still ahead of your lead generation costs?
It is important to check if your lead conversions match industry standards. Comparing your results with the industry standard can help you determine if your strategies and teams are effective.
To improve conversion rates, you must implement the best sales funnel optimization strategy. You need to take a look at the process you are currently using and make improvements based on what is happening behind the scenes.
You can always tweak your lead generation process to maximize the effectiveness of every step of the funnel, from the top where visitors are converted into leads to the bottom, to the point of acquisition. Optimizing effectively results in higher conversion rates and more sustainable revenue.
Share content that is compelling enough to inspire your target audience to become qualified leads as part of your lead generation strategy. When a lead downloads your ebook, becomes a subscriber, or fills out an inquiry form, you know that they have been successfully acquired.
The funnel does not end with lead acquisition. To turn them into loyal customers, you must maintain the relationship. You must keep in touch with your current clients, whether it is by providing relevant content, industry news or updates that support their decision to purchase your product or services.
- Conversions are possible by acquiring qualified leads and continually guiding them through your sales funnel.
- You can easily compare yourself to your competitors by knowing the industry benchmarks. You should always be looking for ways to get ahead.
- If your numbers are below the industry standard, it is important to understand where your company is failing and then focus on developing new strategies to succeed.
How important is it to measure success
Conversion rates are a measure of how quickly leads become clients. This is crucial for business growth. A high conversion rate means that you get more for each dollar spent to convert a lead into a paying client. How successful your sales and marketing efforts are will depend on how high or low the conversion rate is.
Conversion is often defined as when a lead becomes a paying client. Conversion can also refer to any other customer behavior, such as signing up for your newsletter, downloading your whitepaper offer, sharing content on social networks, or spending a certain amount of time on your homepage.
Higher conversion rates translate into more sales for your company. Sales will move faster down the sales funnel if there are more leads. High conversion rates are a sign of a successful alignment between marketing and sales teams.
Low conversion rates can be due to a variety of reasons. Avoiding any of these will result in low ROI and poor profitability. Low conversion rates could be due to any one of these reasons:
- Landing pages don’t have UX design in mind – UX is important for your customers because they can be stopped mid-buying process by complicated or bulky experiences.
- Your offer isn’t comparable to the competitors – Prices and quality may differ. Compare your offer to the competition to see where it might be lacking.
- Your sales process is too complicated. Can customers understand what you are selling, or must they go through multiple steps and then move on?
- Prospects lack strong intent. Were we able to target the right audience and reach them? A high bounce rate will be caused by people not being directed to your landing page.
How to Calculate Lead Conversion Rates
Conversion rates are the result of reaching the right audience and presenting the right solution to them. This then encourages them to take the action that you want. These can range from subscribing or buying directly from your site.
It is simple to calculate your conversion rate. Once you have defined what a conversion is you can now measure it and calculate your lead conversion rate. Conversion rates equal the sum of the conversions and the number of leads, then multiply by 100.
The formula for conversion should look something like this:
The Lead Conversion Rate = Total Number Total No. of New Customers/Number of Leads
If you have 100 leads and 20 of those leads become new customers, your conversion rate for lead is 20%. You can track more than one conversion action, so your results could go beyond 100%. Each interaction can result in multiple conversions.
- Source: https://www.rekener.com/resources/metrics/how-to-calculate-lead-conversion-rate
Average Conversion Rate Per Industry
Different industries have different conversion rates. There are many industries with different targets and conversations so no one standard can be used. These could include different products, information sources, and so forth.
You can also expect traffic to come from the top of your funnel to be much higher than those farther down to become Marketing Qualified leads (MQL), and Sales Qualified leads (SQL).
Visitors who become MQLs or SQLs have greater opportunities because they have been identified by you as leads and have expressed interest in your product. The average SQL conversion rate is higher than MQL. This is because SQLs are in the buying phase, while MQLs have not yet reached that stage.
Different industries have different conversion rates. Marketing Sherpa research found that websites with traffic coming from the top of the funnel in different industries often convert within these ranges.
|INDUSTRY||AVERAGE CONVERSION RATE|
|Commerce or Retail||3%|
|Travel or Hospitality||4%|
|Packaging or manufacturing||4%|
|Technology Hardware or Equipment||5%|
|Media or Publishing||10%|
|Professional or Financial Services||10%|
HubSpot recommends that landing page conversion rates should average between 20-25%. WordStream also reported that the average conversion rate for PPC Pay-per Click campaigns is 2.3%
Improve your Lead Conversion Rates
You can improve your conversion rates, even though you need to stay in line with industry standards. First, you need to know where you stand. Next, compute your conversion rates and compare them with the industry standard. It’s now time to see where you stand and how you can improve. These are some simple tips that will help you improve the conversion rate of your company.
- Determine your conversion goals. What are you trying to achieve? Are you encouraging customers to do the things you want?
- Optimize your website – Make your site user-friendly. You can create a simple user experience that allows prospects to quickly and efficiently find the information they need.
- Test your ads and landing pages with A/B testing. However, does this translate to your target audience? Your target audience may see things differently. A/B testing can help you to understand this.
Once you’ve identified the areas you need to improve on, you can then go about implementing these features. This is not an easy task. These are continual improvements that your company should implement, especially in light of industry and technology changes.
Good conversion rates are a key indicator of your company’s health. You need to know what your conversion rate is so that you can compare yourself with your competitors and avoid losing clients.
Marketing is a constant problem. You must generate lots of leads and have ever-increasing goals in order to generate more leads than you did previously. This can lead to you sacrificing quality in order to increase your demand generation program ROI.
The post Are your Lead Conversion Rates above Average? Marketing Insider Group published the article first.
By: Giana Reno
Title: Are Your Lead Conversion Rates Above Average?
Sourced From: marketinginsidergroup.com/content-marketing/lead-conversion-rates-average/
Published Date: Thu, 24 Mar 2022 12:00:00 +0000
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