The Sales Funnel
The Sales Funnel is a wonderful way to track clients, from being a lead to a customer. From the initial stage of awareness to the final stage of purchase, it trickles down (hence ‘funnel’) your customers and your efforts in the right direction. Working along the sales funnel is crucial for any sales employee. It’s a tried and tested model, effective at the sales game. While this is a theoretical model, in the real practical world, the numbers are what counts. Conversions are the metric to assess your success. Let’s look at the ‘Sales Conversion Rate’, the fundamental performance indicator in great detail.
Sales Conversion Rate: What does it imply?
‘Converting leads into customers’. That’s pretty much the aim of the game. We know the sales funnel is the ‘how’ part of it. What is important, however, is the rate at which it is done. Being effective at it is crucial. The Sales Conversion Rate is the metric that determines the quality of leads and highlights the performance of the sales and marketing teams.
It is imperative to note that what this suggests about performance is also dependent upon the firm’s past performance and the industry in question. Converting 10 out of 100 leads is a 10% conversion rate. This number holds merit if seen under the purview of the market scenario and past transaction records. It is also clear that the formula for Sales Conversion Rate is
Sales Conversion Rate = (Leads converted into sales / Qualified leads) x 100
On the surface, a ratio might not be that insightful. However, a well thought out analysis could yield the right kind of results. Optimization of these numbers can be beneficial the next time a lead needs conversion in this vertical. The effectiveness also transmits to cutting costs. An increase in the conversion rate essentially means that there is more coming from a specific budget. One gets more customers from a fixed budget, making it cost-effective as well. Moreover, you will be able to effectively convert leads into clients.
How to Increase Sales Conversion Rate?
What can a firm do to maximize the conversion rate? Here are some ways in which your sales figures can skyrocket by increasing the sales conversion rate:
An Ideal Sales Lead list
Quality leads translate to quality customers. Leads that are specifically catered towards the company can be used by the sales funnel to register staggering results. Starting with a comprehensive database is the right step and is half the job done. If you need the perfect B2B sales lead list provider, you are at the right place!
At DataFusion Solutions, we ensure quality sales prospects and a comprehensive list of sales leads. Whatever be the requirement, we provide customized sales lead lists from a flawless B2B database. If inadequate sales leads and prospects is an area of concern, our database can be the difference when it comes to converting quality leads.
Making the most out of SEO
Higher traffic on websites increases the chances of sales conversion readily. Here is where SEO comes to the rescue. Using the feature to your advantage means getting the website to appear higher on search results. Doing this, in turn, increases traffic on the site, ergo growing conversions.
The key to doing this is emphasizing on the right keywords. More the number of keywords that can direct customers to your business, the better are the chances to rank higher up when it comes to appearance on search results. It should, undoubtedly, cater to the target audience and be optimized better than competitors.
Building the right relationships
A crucial facet of sales and marketing is the relationship between the firm and its customer. The right connections lead to conversions and then further referrals. Trust is the biggest differentiator when it comes to landing a conversion. It is also something that can develop over time. In the online arena, trust can build with the following on your website:
- Easily verifiable information on the website: Providing citations, testimonials, and sources for all the information on the site ensures the content is of a confident tone and enables trust on behalf of the customer.
- Highlighting the expertise that you offer: Associate your product with the expert knowledge on offer. Linking to partner sites and organizations that are ‘experts’ enhances credibility.
- Emphasize on the clarity of content: Complex business language and fancy terms do not work. It is important to “write the way you talk.” As the aim is to build a close relationship, the content should appear friendly and approachable.
Making the experience easy
Ease of doing business is another area that impacts the conversion rate. The goal should be to ease the process so that a transaction does not become cumbersome for the customer. A good pointer is that it should be intuitive and self-evident.
- The Problem of Choice: Increasing the choices available to the customer is counterintuitive. It increases the probability that the consumer will end up not buying anything. As options are paralyzing, this paradox should be kept in mind. Using the right filters helps massively.
- Proper guidance and lesser fields: Another inversely proportional relation is between the number of fields you ask to fill on your site and the conversion rate. Thus, it is advisable to keep them as low as possible. Furthermore, guiding users onto the next step in the purchasing process is desirable.
Comparison with Competitors
The buyer likely researched the product and did a competitor analysis before arriving at your doorstep. Staying ahead of the game warrants that you do it beforehand. Make the comparison so that you can highlight the differences that matter.
A proper analysis lets you justify the differences between you and the competitor. It gives a chance to convince why your product is superior and because of the right reasons. A compelling analysis can be the difference between a doubtful lead and an assured conversion. In most cases, the customer is not meticulous in their investigation, and you can fill that gap.
Higher Conversion Rates: Some Success Stories
What are some real benefits that firms have accrued after increasing their sales conversion rate through these methods? Here are some case studies:
Rise because of image addition
Many companies have seen a significant rise in sales conversion and were able to optimize better because of the simple addition of images. A prime example is Basecamp. The company sought to increase conversions on its landing page. They started from scratch and added a picture of a human.
The result? A 102.5% spike in conversions!
Therefore, the key takeaways are that starting from the beginning can often lead to the right solutions, and images help attain the much sought after goal of conversion rate increase.
Lowering the number of Question Fields
As mentioned earlier, the inverse relationship between the number of fields required to fill a form and sales conversion is significant. Keeping the efforts needed in mundane tasks such as registrations at a minimum level can help reap benefits.
Flying Scots, an airport parking provider, took this route to increase their conversions. They saw an increase of 45.45% rise in customers moving to the next step and a massive 35% increase in sales conversion rate.
A key takeaway here is to focus on keeping the information required short and precise.
Authenticity = Sales Boost!
The following is a case that perfectly highlights the importance of associating with authentic ‘stamps of approval’ and genuine ratings. Express Stores, an online watch retailer, realized this by addressing the authenticity concerns of its customers.
They put up an ‘authentic product’ seal on the website, right next to the product. It resulted in a whopping 107% increase in sales conversion rates. Thus, the element of trust has a high weightage, and simple tweaks can result in massive sales boost.
Increasing Sales Conversion Rates should be Priority
Applying the right technique can skyrocket your sales game. Simple tweaks can go a long way, increasing conversion rates and sales figures. With all these success stories, it is undoubtedly the most efficient way to improve the firm’s sales funnel. Getting leads might be a tough job, but the crucial part is keeping an eye out on that ratio. Applying the tips we have provided will just do the trick!