Sales Conversion Rate: What Is It And How To Increase It?
Have a sales conversion rate growing is and will always need to be a goal, almost an obsession of any company. And that needs to be on the minds of everyone involved in the business process, on the customer journey.
If the marketing team generates leads and the pre-sales qualify, then more customers are expected to join the company, right? But, and when that doesn’t happen. How much the sales conversion rate falls short of what is necessary… what to do? There is certainly something wrong. The process fails at some point and you need to be aware of it and act immediately. Selling more and better is undoubtedly a goal to be pursued. However, without getting to the basics, this seems an unlikely fate. It must show itself as a qualified solution for the market. Whoever reaches your brand, from the first to the last contact, and realize that you are an expert at what you sell.
From there you will be moving towards improving sales conversions. In this article, we’ll talk more about the importance of this metric and what actions can be taken to make it bigger and bigger. We will see? Good reading!
First of all: what is the sales conversion rate and how to calculate it?
It is necessary to be clear from the beginning. The sales conversion rate doesn’t just refer to the commercial sector and the business closings. The entire sales force of the company is taken into account in order to analyze the numbers resulting from the marketing strategies. To better understand the concept of this sales metric, we can think of several steps. These range from closing a sale, asking for a quote, filling out a form, entering the trial, subscribing to a newsletter, passing through pipeline stages … and so on. Everything that moves from one stage to another can (and should) have its conversion rate measured. Therefore, thinking about sales, the conversion takes place from one step to another throughout the entire sales process. And then you can take whatever points you want to analyze.
- How many people who filled out the site’s registration form became customers?
- How many people who received a proposal from the sales team became customers?
- How many people who made an appointment with the salesperson became customers?
Take the step you want and review. The ideal – and you know it – is to analyze the process as a whole to know where there is (if any) a failure.
Let’s go to the accounts
Let’s give you a practical example of how your business’ sales conversion rate can be calculated. Imagine that you had, in a month, on your website, 500 people filling out forms interested in your product or service and joined the sales funnel. Out of this number, 10 accepted your offer and effectively became your customers. Keeping these numbers in mind, we understand that the rate is 2%. That’s because: 10/500 = 0.02. That is, 2%.
The Importance of Conversion Rate in the Sales Funnel
How do you know if your customer acquisition strategy is really effective? Or, how can you be aware that salespeople generate value for the prospect at the time of the sales pitch? From these questions, you begin to understand the importance of knowing your business’ sales conversion rate very well. It is through it that you know all the results within your company.
When we talk about conversions at different stages of the sales funnel, knowing these numbers is even more critical. The sales management is something that needs to work well, otherwise the Cecil be too high. And you certainly don’t want that. So the question that remains is: where is the business process failing? Or, where can it improve? Is it in lead generation? Is it in the qualification by the SDRs? Is it time to submit the proposal? In the follow up steps? Once you know what the acceptable sales conversion rate is at each stage of the pipeline, you will know where there is a gap and work to correct it as soon as possible.
7 tips for an ever-increasing sales conversion rate
Before understanding how to increase these numbers, one question needs to be answered clearly and convincingly. What is the pipeline step-to-step sales conversion rate your company is looking for? These numbers need to be very clear so you can begin to understand if you are above or below what you want. That’s because any strategy you apply to increase this metric needs to be applied gradually. The growth must be natural for it to be able to sustain itself. A punctual action that will yield larger numbers in one month will be useless if it falls in the next. The change of attitude needs to be broader. We have separated 7 tips for you to have an ever higher sales conversion rate. These are a few steps so you can have bigger numbers when moving the prospect from one step of the funnel to another. Check out:
1 – Track everything in real time
The first step to increase your sales conversion rate is to follow up continuously and preferably in real time. Some tools help you see conversion at every step of the funnel – as long as your sales system allows for integrations. The Data Box is one. The Data Studio as well. Monitoring needs to be daily. Set a minimum rate and at the end of a period (week or month) see where you went above and below what you expected. Keep the steps well separated to see where you need to improve. And, after identifying, draw up a strategic plan to change this scenario.
2 – Better prospect
Is the problem in converting the generated leads into opportunities for the pre-sales to contact? One of the ways to have more customers compared to the leads generated is in the customer prospecting strategy. Is the marketing team really directing its strategies and actions towards the ideal customer profile? It’s essential to have the buyer persona of your business well mapped. And everything the company makes efforts in the mission of how to attract customers needs to be focused on it. If this is not happening, then really your conversion rates will always be below. After all, you will be selling to people who don’t fully fit into your business. This will generate, in addition to a smaller number of closures, a much longer sales cycle. After all, it will take a much greater effort to convince that person to buy.
3 – Invest in educational content
You’re prospecting right, but for some reason, the customers aren’t ready to buy. Whether the pre-sales team has an agenda or not, the closings aren’t happening… well, so it’s an opportunity for you to invest in good content. It is necessary to provide the prospect with texts, videos and all kinds of rich material. The intention here is to make you confident to buy.
Show how the service or product you sell works. Share a success story. Reinforce the importance of your solution. It is essential that, when the customer is talking to the seller, he deals with much more business than technical aspects. These doubts need to be resolved in the qualification stage. If they are, the closer can generate value for the customer and thus have a much better chance of getting a “yes” when submitting the proposal.
4 – Ask more
Well, so the problem you identified is sending proposals or accepting them? Maybe it’s because the salesperson didn’t ask the right questions in the sales pitch. Detail: as important as it is to follow a sales script, it cannot be “closed”. The risk you run is precisely this: following the script and not asking the questions that are relevant to those who listen to it. The seller must act as a consultant. More than that, it takes much more to hear than to speak. Whenever you’re going to intervene, you need to be delivering value. Being didactic and consultative.
Even because, decision-making purchase will not occur at the time of demo of the solution. It may take a few more days – which is why follow-up is necessary. The sales team needs to be at the prospect’s disposal at all times for additional information to help close the deal. As great as the salesperson’s power of persuasion, they will take into account a number of factors to decide. Especially if we think about B2B sales, which are more complex and generally involve more than one person deciding.
5 – Prepare to work around objections
During the purchase journey, the customer always has many questions. Much of it – not to say all – you can fix them by producing good content. However, if you don’t deliver 100% of the responses, be ready to work around objections when calling this potential customer. If you don’t, people will see that: either you’re not prepared to sell (and therefore serve them well), or the solution you sold doesn’t address the problem he has. It is at this moment that the use of a sales playbook in the company grows in importance. Within this document – which needs to be constantly updated – put a section for objections. In him:
- Make a list of the main questions that appear during the purchase process;
- For each question, a question will be created;
- For each question, an answer (as well as needs to be said) will be elaborated;
- For each answer, leave a link to a content that helps to elucidate the question;
To save even more time, set up a funnel step for objections in your CRM and have email templates ready for the most recurring questions. Contact the lead – by email or phone. If he enters this step of the pipeline (some won’t because they have no objections), set up an alert. After that, get one of the email templates that answer this question and send it so that the customer can consume the content and resolve their questions. Give him time to think and come back to him a few days later – but don’t take too long – and ask them to continue the process to sell.
6 – Listen to the sales team’s calls
One of the most effective ways to identify why you have a sales rate below acceptable is to measure the quality of your calls. Whether they are from the team responsible for qualifying the customer for the purchase, whether they are from the seller who seeks closing. Inside your CRM, enjoy the integration with the VoIP service and listen to recorded calls. Conduct a performance review of the entire team. Was the call relevant? Have the correct questions been asked? Or rather: was space given for the person on the other end of the line to express their needs?
And how did the team act after that? Feedback is very important for companies to have a customer focus. This decisively contributes to more conversions. It is necessary to be aware that the team is engaged in the process as a whole – and not just in the payment of the sales commission.
7 – Use the right tools
Set up funnel for objections, listen to recorded calls. These are possible features when you choose the right sales software. But think about digital transformation as a whole. Use technology to track a customer’s entire purchase journey – from converted lead to signed contract. And of course: invest in training, lots of sales training to always improve the way you deliver the solution to the market. With system integrations, reporting and lots of analytics, you’ll be able to get your strategies right and always have higher sales conversion rates.
So, how can we help you?
Enjoy and read two articles that will help you better manage your business processes every day. The first one has 6 sales strategies to help you convert more. The second addresses the difference between efficiency and effectiveness in sales. Good sales!
Have a sales conversion rate growing is and will always need to be a goal, almost an obsession of any company. And that needs to be on the minds of everyone involved in the business process, on the customer journey. If the marketing team generates leads and the pre-sales qualify, then more customers are expected to…