But how do you know if the actions you are taking are generating positive results for your business? You need to learn how to do this calculation step by step, as well as how to interpret the data.
In fact, this is the ideal time, because the percentage of salespeople who meet their quotas has dropped by 10% over the past six years.
Conversion rate is a metric list of zambia consumer email used to measure how many people have moved from one stage of the sales funnel to another, whether they are visitors who become leads or leads who become customers.
Calculating conversion rate means getting the number that shows what percentage of your target audience takes a desired action.
We recommend you read: What is pre-sale and how does it help convert leads into customers?
What is sales conversion rate?
In sales, conversion rate refers to the percentage of customers who made a purchase in a given period. This calculation takes into account all the people who have interacted with your brand and could have done so as well.
What is social media conversion rate?
In social media, conversion rate refers to the percentage of customers who performed an action desired by a company in this digital environment. For example, following the brand's profile on Instagram, liking a post on Facebook or interacting with a Tik Tok video.
Why is it important to calculate the conversion rate?
By analyzing the conversion rate, it is possible to identify bottlenecks throughout the entire sales funnel and, based on that, create strategies to improve it.
Conversion rate is one of the most important sales KPIs , as it allows us to understand which actions contribute to generating more customers and what does not work as expected.
How is conversion rate calculated?
To calculate the conversion rate , simply divide the number of conversions by the number of total visits or contacts. Then multiply by one hundred to get the number in percentage.
The conversion rate formula is:
Conversion rate (%) = (Conversions in the period ÷ total contacts) * 100
Example of how conversion rate is calculated
Imagine your business website received 5,000 visitors in a month and there were 1,500 form submissions. Applying the conversion rate formula we would have:
(1,500 ÷ 5,000) * 100 = 30%
The sales conversion rate, for example, shows what percentage of leads have been converted into customers. So, if 1,000 leads consulted a salesperson, but 200 sales were made, then the sales conversion rate is
(200 ÷ 1,000) = 0.2 or 20%.
Remember that the data used in the conversion rate formula must correspond to the same time period.
What is the ideal conversion rate?
To find the ideal conversion rate for your business, you need to know what your business strategy goals are , as there is no magic number that works for everyone.
It is also important to know what the conversion rate is by segment , to compare your results to those of your competitors.
On the other hand, it should be noted that this metric has to be constantly analyzed to obtain valuable insights from it and implement continuous improvement plans .
For example, you might identify that your conversion rate from visitors to leads is 40%, but from leads to customers it is 5%. Therefore, 95% of leads are not converting, which may be an issue that deserves special attention.
In the case presented, it can be seen that the actions to generate leads are being successful, however, these people are not interested in closing a deal. So, think about it:
