Understand what conversion rate is and learn how to optimize your marketing and sales results by tracking this metric
Many companies look at the conversion rate as a metric to be used as a thermometer to understand the real efficiency of the website or a specific page’s communication.
There are those who prefer to use this information purely for setting goals for a commercial team or an eCommerce.
Others prefer only to consult this data once a year, to understand how the performance was throughout the year and define strategic actions based on it.
And believe me: there are those who do not even look at this data, do not understand its importance or even know how to measure it.
But, after all, is it so important to measure this data? Where does it direct us and how can I use it to my advantage?
Blue World City is going to answer these questions here or even open a space for us to discuss the topic.
What is conversion rate anyway?
The purpose of this metric may be to understand how your company’s return on each investment, be it time or money, is in relation to sales.
But it can also be a good way to measure the results of your Digital Marketing strategy.
It can also be the simple filling out of registration, requesting a quote or even subscribing to a newsletter.
Understanding your conversion rate is very important, as it will make it clear how efficient and mature the site is, and also of paramount importance for tracking the results of the business as a whole.
The conversion rate can be calculated between all stages of the sales funnel and provides a diagnosis of where the bottleneck is, the weakness of the strategy and, above all, shows where we should act.
How does conversion rate help measure results?
There is always some investment of money or even time in a company to launch a campaign.
Now imagine if you get ways to understand exactly the result of this work as accurately as possible.
You can, for example, create a Landing Page for promotion and boost it in some media. People will start accessing the page, showing interest in the content.
Of all the people who access, those who are actually interested in the topic will fill out a form, according to your strategy to achieve the conversion. Okay, one more conversion for your page!
Each period, each campaign, you can evaluate the number of people who converted versus the total number of visits. Then just chase that number to understand how many actually evolved to close. This way, you will have a more accurate understanding of the return on your investment, whether it is in cash directly or in time.
This is just one example of how measuring conversion rate can help your company better target your Digital Marketing efforts.
And we know from experience that an optimized conversion rate helps keep your funnel healthy.
How to calculate the conversion rate?
In a very simple way, we were able to measure the actual conversion of the website. We can measure the percentage between each stage, considering the following criteria:
- Visitors to Leads ;
- Leads for opportunities;
- Opportunities for customers;
This is just an example, but if in your company’s strategy you find it interesting to “break” the funnel in more steps or reduce it, just adapt it to your reality.
Let’s go to a practical example, calculating the conversion of website visitors to Leads.
The objective here is to capture the contact of the person who is browsing the site, to understand who they are so that we can work further on their nutrition.
A site with a volume of visitors in 10,000 hits in a given period had 598 forms filled out, including conversion points that are strategically placed on some pages and pop-ups.
In this case, we calculate as follows:
- Hits: 10,000
- Number of Conversions: 598
- Calculation: 598/10,000 = 5.98%
Here we have a 5.98% conversion rate from Visitors to Leads.
It’s important that you know what metrics to analyze at each stage and have a full diagnosis of your site’s performance and thus target your efforts at the right point.
How do I know if my conversion rate is OK?
In the example above, we show a site that has a conversion rate of 5.98% for the period analyzed. Is this number low? This is relative! It will depend on your market, as there are comparisons between the segments that can give you a better direction.
Check our Sales Funnel Benchmarking tool if you don’t know the rates for your segment.
Anyway, it’s clear that more than 90% of hits on this site are getting lost for some reason.
That’s where all the work your Marketing team can work on comes in, to understand more precisely what happens to visitors who don’t convert and understand the conversion of the entire funnel.
Generally speaking, the conversion rate is one of the most important metrics in a company and should be a latent concern.
It is an extremely important managerial number, which will help in directing the company’s marketing actions — without discarding the sales team, which will have the responsibility to bring relevant insights related to the Leads that marketing delivers, and thus understand the quality of these Leads and constantly work on the criteria adjustments.
How to Optimize Conversion Rate across Your Sales Funnel
Once you’ve identified your sales funnel issues, you can assess how to improve your conversion rate at each of the steps. Remember not to mess around and change everything at the same time. The ideal is to identify where the bottlenecks are and work to improve one step at a time.
Top of the Funnel: Traffic and Leads Generation
The top of the funnel is where visitors to your company’s website come and it’s a mistake to think that optimizing the top of the funnel is only focusing on traffic generation. As said, it is not sustainable and often not cheap.
There are some ways to increase your website’s conversion rate, taking advantage of the volume of existing visitors to also increase the number of Leads that will advance in the funnel. Some of these ways are:
1. Optimize the conversion rate for each channel
Understand where the traffic is coming from (social networks, paid media, Google, etc.) and which pages are being accessed from each channel.
For example, in paid media, better tailoring the ad to the offer and target audience will make it easier for visitors to find what they’re looking for. This will make the conversion rate increase. In the case of paid media, increasing conversion even lowers the cost per lead.
2. Increase and/or optimize the contact points that a Lead has with your company
This involves not only the forms, but also:
- Improve the design and localization of calls-to-action (test different variations);
- Use Lead capture tools, such as scroll-box (box that appears after a certain time scrolling the page), exit-intent (that pop-up that appears when you are leaving the site), among others. It may sound boring, but it works.
3. Perform A/B tests
Maybe this is one of the first things that comes to mind when we talk about optimizing conversions – and no wonder.
Doing an A/B test is often simple and brings dramatic conversion improvements. An example of this is a test we did here at Digital Results, in which, by removing only one form field, we increased the Landing Pages conversion rate by 167%.
Middle of the Funnel: Preparing Leads for Purchase
Now that you’ve managed to turn more visitors into Leads and get their attention, you need to keep them engaged with your company and get them to consume more content to advance the purchase process.
Optimizing this step is crucial for the performance that sales will soon have. For this, 3 actions can help you:
1. Define the purchase journey
This first step will help you define the content for each of the purchase steps, identify which step each Lead is in and treat it accordingly.
By defining and understanding your customer’s buying journey, you know what kind of information is most important and when it should be delivered. Delivering the right information at the right time makes the Lead have a much greater engagement with your company.
If the Lead is already well advanced on the subject, has already understood what problem he is going to solve and is already in the stage of making the purchase decision, it makes no sense to send him super basic information.
2. Create marketing automation to nurture Leads
Once the purchase journey is organized, greater intelligence is needed to be able to make Leads advance in the purchase process in a more automatic and scalable way.
The simplest relationship model like traditional Email Marketing is not enough and Marketing Automation comes as an efficient solution to this problem.
With marketing automation it is then possible to deliver the right content, to the right Lead, at the right time. And on a much larger scale. The two main benefits are increased sales and revenue and reduced acquisition costs.
3. Qualify Leads before moving to the sales team
As lead generation increases, we start to create another problem: too many Leads for the sales team to work with. In theory, if we have the sales force to make the approaches, more Leads is always better.
However, from experience we know that each salesperson has an ideal volume of approaches per period, and exceeding that number will result in a decrease in the effectiveness and productivity of the salesperson. Therefore, delivering more qualified Leads can contribute a lot to salespeople’s productivity.
It is also possible to optimize and scale the Leads qualification itself. The Lead Scoring is a method/tool to automate Leads qualification. Based on some rules, the marketing automation software analyzes the Lead information and already indicates how prepared those Leads are for purchasing.
If they are not yet at the ideal time, they should continue to be nurtured. If they have reached the ideal purchase time, they are sent to sellers.
Funnel Bottom: Sales and Retention
With the top and middle of the funnel well optimized, our Leads are arriving polite and in adequate volume. Our next step is to filter which Leads really have the potential to become customers, and we also have a lot to optimize in this step.
The bottom of the funnel can be divided into three key points for us to seek to optimize: qualification, delivery of Leads and its approach.
1. Deliver Leads for Sales More Efficiently
There is a strong correlation between sales and time between Leads conversion on your site and the seller’s approach. To the point of indicating that if we can do the approach within the first 3 minutes after an action, we will increase the conversion rate by 98%.
At this point marketing automation plays a big role, sending the Leads you deem qualified in real-time to the sales CRM. This and other tips can be found in the post on sales automation.
In addition to the speed with which we send the Lead to sales, we must also think about the information passed along to them. Generally speaking, any information you have about the Lead that helps the seller take a more personalized approach should be sent.
Ideally, the seller should have at hand information about the Lead’s profile, such as decision-making power, company size and segment, and what the Lead was trying to solve when it came to its contents.
2. Use content to help sales
Whoever thought that after sending the leads to sales is wrong, the marketing work is over. It is also a marketing responsibility to provide assistance in the sales process.
A very effective way to help the seller get around objections, spend less time on very basic explanations and explain in more detail is to create blog content or rich content. These contents can be of support for sellers, and also for potential buyers who need to explain what they have learned to the decision-maker.
Marketing automations can also work for you at this time, helping the salesperson to nurture Leads according to the sales objections presented. You can use it to drive urgency to buy, provide case studies that validate your value proposition, or update the prospect on improvements to your product that were missing to make the sale.
Track your conversion rate
If you want to achieve good performance in your business, identify each weakness and opportunities that can be worked on to improve your results, be sure to monitor your conversion rate!
Want help getting started? Need help getting started now evaluating your site’s performance and guidance on getting started? Contact us! With RD Station Marketing you can easily and quickly obtain this information.