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Marketing is a crucial and complex function for any business. It’s important for promoting products, establishing an online presence, nurturing potential customer interest, educating, entertaining and more.
But ultimately, the biggest goal is to generate and convert leads, with 50% of marketers saying this is their top priority when creating campaigns.
This is perhaps why our latest report found that 72% of marketers have increased their lead generation budget this next year.
However, simply adding to your budget is not enough. Lead conversion remains a significant challenge for many businesses for a number of reasons.
One of the key culprits is the confusion or lack of understanding around lead conversion rates. If you don’t know your current lead conversion rates, then you don’t know how well your campaigns are (or aren't) performing.
By learning to calculate lead conversion rate, you can amend and develop your marketing strategies accordingly to improve lead conversion and increase your ROI.
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What is your lead conversion rate and how do you measure it?
Lead conversion rate refers to the metrics you use to measure the success of your marketing and sales strategies, specifically how effectively your campaigns convert prospects into leads and then into paying customers.
Understanding the different definitions and equations
It’s worth noting that there are two slightly differing definitions when it comes to understanding lead conversion rate.
For most, this metric measures how effectively your campaigns convert potential customers into leads but doesn’t focus solely on making sales.
For example, it might calculate the percentage of leads that choose to take a desired action, such as subscribing to your mailing list, downloading an ebook or making a purchase through your website.
To calculate this lead conversion rate, you'll need to take the number of leads, divide it by the total number of visitors to your website (or pages), and multiply it by 100 to generate a percentage.
For example: 40 new mailing list sign-ups/500 website visitors x 100 = 8% lead conversion rate
Alternatively, you can use the same formula but use it to calculate the percentage of leads that actually convert into a sale. This requires a slightly different conversion formula.
For example: 10 new purchase/150 leads x 100 = 6.7% lead conversion rate
How to improve your lead conversion rates
It’s a good idea to track the lead conversion rates of your different campaigns so that, over time, you can evaluate the effectiveness of your marketing and sales techniques. This way, you can identify any areas for improvement or any techniques that work particularly well.
If you've already begun tracking these metrics and you’re looking for a way to improve your lead conversion rates right away, we can help with that too.
Here are nine ways you can easily start improving conversion rates and driving revenue.
1. Focus on quality not quantity
Remember, it’s better to focus on generating high-quality leads rather than simply increasing the quantity. Qualified leads are more likely to convert into paying customers, which ultimately has the biggest impact on your revenue and bottom line.
Recommended reading: Personalisation is only as good as your data: Improving data accuracy
2. Personalise your communication
When creating content and offerings, do so based on the information you have about each lead and their position in the sales funnel. This could include using their name, referencing their industry or addressing their specific pain points to grab their attention.
3. Always provide value
You need to create valuable and entertaining content that prospects will enjoy, such as ebooks, videos, webinars, or free trials that address their needs and showcase your expertise. This not only helps build credibility with your audience, but also keeps them engaged and positions your brand as a thought leader in your industry.
Recommended reading: The secret to successful lead generation? Connection is more powerful than brute force
4. Offer relevant incentives
Consider offering incentives such as discounts, exclusive offers, or bonuses to encourage leads to take action and convert. Tailoring these incentives to the specific needs and interests of your target audience can significantly increase their effectiveness.
5. Optimise your landing pages
Make sure all of your landing pages are designed to convert visitors into leads by making them focused, visually appealing, and optimised for mobile devices. A well-designed landing page should load quickly and have a clear call to action, concise messaging, and engaging visuals that capture the visitor's attention.
6. Share social proof
You can build trust with your target audience by showcasing customer testimonials, case studies, industry awards, and relevant certifications through your marketing efforts. Highlighting positive experiences and success stories from satisfied customers can significantly enhance your credibility and reassure potential leads about the value of your products or services.
7. Create clear calls to action (CTA)
Ensure that your CTAs are always clear, compelling, and prominently displayed. This makes it easier for leads to take the next step in the conversion process. A strong CTA should be visible, strategically placed throughout your content, and clearly communicate the benefits of taking the desired action.
8. Use A/B testing
Continuously test different elements of your conversion process, such as CTAs, landing page designs, and email subject lines to identify what works best for your audience and what doesn't. This experimentation can help you gain valuable insights into the preferences and behaviours of your target market, and make informed decisions that can improve your lead conversion rate.
9. Nurture and retarget leads
Use automation and retargeting campaigns to consistently follow up with leads and nurture them over time. You can also use email marketing and other content to stay engaged with leads who aren't ready to convert just yet. Retargeting campaigns can also help re-engage visitors who have shown interest but haven't taken the final step and guide them back to your website.
It’s time to calculate your lead conversion rates
Given that 63% of leads who inquire about your business can take at least three months to actually convert, it’s clear that you need to do all you can to keep them engaged.
By following the steps above, you will not only keep prospects engaged during this time, but you can generate more leads and increase conversion rates in doing so.
